Informist, Monday, Nov 6, 2023

By Akshata Gorde

MUMBAI – Traders added short put options at 19300 to 19400 strikes of the Nifty 50 index expiring Thursday as they see the rally in the spot market continuing in the near term. Meanwhile, long positions were added at calls of 19450, acting as the immediate resistance level for the index.

The 50-stock index closed 0.9% higher today at 19411.75 points, the third successive session to see the index rise, mirroring the rebound in global markets. Analysts expect the spot index to find support at 19300 points, followed by 19190 points. Resistance is seen at 19450 points, and may move up to 19600 points.

"The markets are largely mirroring the rebound of the US markets and look set to test the hurdle at 19,500 (points) in Nifty (50)," said Ajit Mishra, senior vice-president of technical research at Religare Broking Ltd in a note.

"Going ahead, sustainability of the positive tone on the global front, combined with improved participation from the banking pack, would be critical," Mishra said. The Nifty Bank derivatives segment also saw put writing at 43500 strike price as the index closed 0.7% higher today at 43619.40 points.

Aggressive put writing was seen at 19300, 19350, and 19400 strikes with premiums falling in the range of 68-76% for these levels. The 19300 strike price had the highest open interest addition of 6.1 mln contracts at a premium of 27.80 rupees today.

On the call side, the 19450 strike price saw the highest addition of open interest of 2.1 mln contracts, with the premium rising 175% to 59 rupees. The 19500 and 19600 strikes also witnessed some buying with premiums rising 180% and 151%, respectively.

"Going ahead, we expect Nifty (50) to respect 19000 levels and expect short-covering move towards 19600 in the coming sessions," said ICICIdirect in its research note.

--Nifty 50 Nov closed at 19484, up 180.40 points; 72.25-point premium to spot index

--Nifty 50 Dec closed at 19592, up 185.10 points; 180.25-point premium to spot index

--Nifty 50 Jan closed at 19690, up 182.10 points; 278.25-point premium to spot index

Divi's Laboratories, State Bank of India, HDFC Bank, Reliance Industries, Bank of Baroda, Tata Motors, ICICI Bank, Bajaj Finance, Titan Co, Axis Bank, and Aarti Industries were among the most actively traded underlying stocks.  End

Edited by Rajeev Pai

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