The cash market showed a lot of volatility initially, but ended flat towards the close of session, with the futures and options segment moving in tandem.
There was hardly any addition in open interest in Nifty futures, though during the last few trading sessions the additions had been significant.
Dealers said this meant investors were being cautious in their investments and were not taking a call on the future.
The implied volatility in Nifty call options was slightly higher at 12 to 13 per cent. However, volatility in put options slid to around 22 per cent from 24 per cent, due to the lower discount to the spot Nifty. Nifty options were also fairly active during the day.
A fair amount of activity was also seen in individual stock options. This segment has hardly seen any activity in the past few sessions.
Dealers said open interest in some major stocks were rising, indicating that some big players were taking up large positions to hedge their exposure in the cash segment.
The Tata Engineering counter saw an addition of 8 lakh shares in July futures. Satyam added five lakh shares, SBI added three lakh shares and Tata Steel saw an addition of three lakh shares in open interest positions in futures.
Reliance Industries saw activity in call options with strikes of 350 and 360. The open interest in these strike prices have also increased.
Satyam call options with strikes of 200 and 210 and Tata Steel call options with strikes of at 175 and 180 also saw addition of open positions.
Dealers said investors holding long positions can write out-of-the-money call options in select stocks.
