Informist, Monday, May 22, 2023

By Anshul Choudhary

MUMBAI – The Nifty 50 index gained for the second consecutive session and ended above 18300 points, prompting traders to buy call options at this strike price.

Analysts believe the positive momentum will remain at least till the end of this week, with the Nifty 50 index expected to reach 18450-18500 points.

"People have bought call options at 18300 (strike price of Nifty 50) and selling was also seen on the put side at lower levels (below the 18300 strike price)," said Ganesh Angaj, technical head at NVS Brokerage.

Angaj believes the Nifty 50 is likely to reach 18450 points by the end of this week. "There is significant open interest at 18500 call and that will act as a resistance," he said.

During today's trading session, the Nifty 50 tested the 18250 level as some analysts had expected it would, but thereafter it moved upwards, which aided positive sentiments.

Today, the premium on call options at 18300 strike price rose by 34 rupees to 81.40 rupees. There was also some buying seen at call options of 18500 strike price, with open interest rising to 10.5 mln.

On the put side, traders sold contracts at 18100-18200 strike prices as the market remained strong. However, open interest at 18200 put was the highest and it is being seen as a support level for this week's sessions. The premium on put options at 18200 strike price declined by 42 rupees to 29.70 rupees while the premium at 18100 strike price declined by 22.40 rupees to 16.30 rupees.

Shares of Adani Enterprises were in focus today as these closed nearly 19% higher at 2,326.10 rupees. This also led to increased interest for the stock in the derivative market. Open interest for call options at 2,400 strike prices was the highest at 1.88 mln. Premium at this strike price rose by 58.10 rupees to 61.60 rupees.

The May futures contract of the Nifty 50 closed at a premium of 10.25 points to the spot index today. Open interest in the contract declined 0.2% to 10.53 mln, as per provisional data.

--Nifty 50 May closed at 18324.65, up 99.25 points; 10.25-point premium to spot index

--Nifty 50 Jun closed at 18398.00, up 96.25 points; 83.6-point premium to spot index

--Nifty 50 Jul closed at 18452.95, up 86.35 points; 138.55-point premium to spot index

HDFC Bank, Adani Enterprises, Adani Ports and Special Economic Zone, and Reliance Industries were among the more actively traded underlying stocks.  End

Edited by Rajeev Pai

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