The benchmark index ended Wednesday's session on a flat note and traded in a very tight range of merely 40 points throughout the day. In the later half, Nifty clocked a new record high of 9649.60; however, some selling emerged thereafter, guiding benchmark index (Nifty) to close with marginal cut. In F&O front, Nifty added good amount of positions; while, we hardly saw any relevant change in BankNifty open interest. Large cap counters like IOC, ICICIBANK, M&M, GAIL, INFRATEL and HDFC added huge open interest in today’s trading session.
As far as Nifty Options activity is concerned, good amount of build-up was seen in 9400 to 9600 put options and we believe these are long positions formed by stronger hands in order to hedge their Index Futures positions. On the flip side, 9600 call options added some fresh positions.
FIIs bought index futures to the tune of Rs 1,129 crore with good amount of rise in open interest, indicating they continue adding longs positions. However, in stock Futures they formed fresh shorts worth Rs 1072 crore. Looking at the overall statistic, we believe one can expect some volatility going ahead which will mostly lead Nifty breaching 9700 mark.
Disclaimer: The author is a derivative analyst with Angel Broking. The views expressed are her own