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Informist, Thursday, Jan. 9, 2025

By Anshul Choudhary

MUMBAI – Traders sold call options as the Nifty 50 ended dangerously close to its key support level of 23500 points Thursday. Options data suggest the Nifty 50 may hold 23500 points on Friday and a further fall may be limited. The sentiment is weak as the December quarter earnings are expected to come below expectations due to lower-than-expected government capital expenditure during the quarter. Tata Consultancy Services was the first Nifty 50 company to report its earnings Thursday.

The Nifty 50 ended at 23526.50 points, down 0.7%. The index was in the red throughout the session and losses were spread across sectors, barring the fast moving consumer goods sector. 

"Aggressive call writing across the 23,550–24,000 zone suggests buying interest is waning, while the unwinding of put positions at higher strikes signals growing bearish sentiment," Dhupesh Dhameja, derivatives analyst at SAMCO securities, said in a note.

For call options expiring next week, premiums fell across the board. The maximum open interest addition was seen at 26500 strike prices, followed by 24500-25000 strike prices. The highest open interest was at 24000-24500 strike prices. Analysts expect the Nifty 50 to face resistance at 23800-23900 points.

For the put options, premiums rose across the board. Put options at 23000 strike prices saw significant open interest addition, along with 23500 strike price. These levels are likely to act as support for the Nifty 50. If the Nifty 50 falls below 23500 points, it may fall to 23250 points, analysts said.

The January futures contract of the Nifty 50 closed at a premium of 144.60 points to the spot index. Open interest in the contract rose 6.6% to 13.78 million, according to provisional data.

--Nifty 50 Jan closed at 23671.10, down 110.25 points

--Nifty 50 Feb closed at 23812.15, down 110.75 points; 285.65-point premium to spot index

--Nifty 50 Mar closed at 23958.35, down 123.35 points; 431.85-point premium to spot index

The most actively traded underlying Wednesday were HDFC Bank, SRF, Tata Consultancy Services, Tata Motors, Reliance Industries, Infosys, State Bank of India, Indraprastha Gas, Kotak Mahindra Bank, Hindustan Unilever, Dixon Technologies and ITC.  End

Edited by Saji George Titus

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