A sudden sell-off in late trade pulled the Nifty below the psychological level of 6,000. But, a rebound from the day’s low of 5,968 at the fag end of the trading session saw the index closing above 6,000. Volatility was high as traders rolled over positions in the derivatives segment from the near-month October series to November. The Nifty November futures, which closed at 70 points premium to the spot, saw rollover of 24.41 million shares.
The rollovers in October were higher at 27.85 million shares, hinting at caution by derivatives players in rolling over positions before two major financial measures unfold on November 2. The rollovers in index heavyweights like ICICI Bank, Larsen & Toubro, RIL, State Bank of India and Tata Motors were significantly lower compared to October. This indicates the traders are exercising caution.
The market picture chart for the last 45 minutes is hinting at support around 5,940. On the intra-day market picture chart, the Nifty is expected to get volume-based support at 6,025. The time-price opportunities-based support is seen at 6,005. The November futures closed at 6,069 from the day’s low of 6,040. The European markets were trading in the green, while Dow Jones opened on a positive note. So, the market is expected to open on positive note, and Nifty may revisit 6,100 tomorrow.
Options traders bought 6,000 and 6,100 call options of the November series mostly to protect short positions in the Nifty futures. The open interest build-up in 6,200 and 6,300 call options indicates the Nifty may face strong resistance above 6,200. The support is seen at 6,000, as it holds the highest open interest among all put options.
Among stock futures, Hero Honda moved up strongly on short-covering. The November futures closed at Rs 1,874 on the back of open interest in 492,125 shares. November futures saw 68 per cent trading above the initial balance range, hinting at long build-up. The market picture chart suggests fresh upside in Hero Honda around Rs 1,923 in the near future.
