Informist, Friday, Jun 9, 2023

By Neeshita Beura

MUMBAI - Options data suggests that the Nifty 50 is expected to remain rangebound next week as traders are cautious ahead of the outcome of the US Federal Open Market Committee's policy meeting on Wednesday. The highest open interest addition was seen at and above the strike price of 18600 in both call and put options.
 

On the calls front, premiums at 18600 strike fell by 55.85 rupees to 77 rupees and open interest rose by 5.7 mln to 8.1 mln. On the put side, premiums at 18600 strike rose by 23.85 rupees to 89.1 rupees and open interest rose by 2.9 mln to 6.2 mln. 

"Most writers who want to pocket the premium are writing call and put contracts at 18600 strike and are making a profit of 160-170 rupees as they expect rangebound behaviour for next week," said Rajesh Palviya, head of technical and derivatives research with Axis Securities.   

The highest open interest concentration was seen at 18700 strike price in both call and put options today. In put options, meaningful open interest addition was seen at 18300, 18400, and 18500 strike prices.

Analysts expect the market could move in a rangebound manner next week until the US Federal Reserve's policy meeting outcome. Some believe that Nifty 50 could fall to as much as 18400-18500 levels due to profit booking. 

Today, Nifty 50 ended 0.4% lower at 18563.40 points. The support for the index is seen at 18500 points and resistance is seen at 18750 points for the coming week. 

For Nifty Bank, Palviya said once the sectoral index tops 44300 points, some short covering can be seen in its options segment. Today, the Nifty Bank ended flat at 43989 points in the spot market. The support for the sectoral index is seen at 43400 points and resistance is seen at 44500 points for the next week.           

The June futures contract of the Nifty 50 closed at a premium of 66.6 points to the spot index today. Open interest in the contract rose 3.3% to 10.2 mln, as per provisional data.

--Nifty 50 Jun closed at 18630.00, down 79.95 points; 66.60-point premium to spot index

--Nifty 50 Jul closed at 18719.00, down 72.80 points; 155.60-point premium to spot index

--Nifty 50 Aug closed at 18815.00, down 66.80 points; 251.60-point premium to spot index

Hindustan Aeronautics, Kotak Mahindra Bank, HDFC Bank, Indian Energy Exchange, Axis Bank, ICICI Bank, Reliance Industries, IndusInd Bank, Infosys, Hero MotoCorp, Tata Motors, India Cements, Larsen & Toubro, Bajaj Finance, and Hindustan Unilever were amongst the most actively traded underlying stocks.  End

Edited by Vandana Hingorani

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