Informist, Friday, Feb 23, 2024

By Anshul Choudhary

MUMBAI – Options data suggest traders sold put options at 22200 points as the Nifty 50 managed to stay above this level for most of the session today. However, the index was sideways today, closing nearly flat compared with Thursday, which pushed some investors to sell call options in anticipation of a correction.

"We cannot rule out the possibility of a correction. But any profit taking up to the level of 21800 should be utilised for initiating fresh long positions," Vipin Kumar, senior derivatives and technical analyst at Globe Capital Market, said. He was bullish for next week and expects the index to hit 22600 points on the back of strong buying from domestic institutional investors. At the same time, there are others who expect consolidation as the index has ended in green for the second consecutive week, rising nearly 500 points or 2.1% during this period. A technical analyst with Axis Securities said he expects the index to consolidate in the range of 22000-22350 points next week.

On the call side, premiums at 22200 strike prices fell 34 rupees to 153 rupees, those of 22300 fell 35 rupees to 102 rupees, and those of 22400 declined 27 rupees to 66 rupees. The 23000 strike price of the call options had the highest open interest, followed by 22500 and 22300.

On the put side, premiums at 22200 fell 11 rupees to 133 rupees, that of 22000 fell 13 rupees to 64 rupees, and that of 21800 declined 11 rupees to 28 rupees. The 21000 strike prices had the highest open interest, followed by 22000 and 21500.   

--Nifty 50 Feb closed at 22222.00, down 21.25 points; 9.30-point premium to spot index

--Nifty 50 Mar closed at 22370.65, down 12.55 points; 157.95-point premium to spot index

--Nifty 50 Apr closed at 22506.00, down 10.55 points; 293.30-point premium to spot index

HDFC Bank, Vodafone Idea, ICICI Bank, Canara Bank, State Bank of India, Bharat Electronics, Reliance Industries, and Bank of Baroda were the most actively traded underlying stocks today.

End

Edited by Vidhi Verma

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