The Nifty’s September futures continued to command a premium of 10 points, indicating that players are creating long positions. On Singapore Exchange’s OTC, the SGX CNX Nifty September futures changed hands at 4475-4493 at 6:30 pm local time. This means that we may see a gap-up opening tomorrow with trades around 4475-4500 on the local bourse.
Nifty’s PCR (open interest) remained stable at 1.35. Call options added an open interest of 1.53 million shares while put options added 1.0 million shares. Strike calls of 4500 and 4600 incrementally added open interest of one million shares.
Since a large part of call OI at 4500-4600 strikes was built-up through buying of call options, we may see the index moving above 4500-4600 in the near future. On the put front, significant action was seen at 4400 strike, indicating a strong support level.
Nifty on Thursday consolidated below the 4500 level and closed at 4450. Technically, the short to medium term outlook remains up with a trend reversal below 4280.
The turnover in the derivative segment declined by 20 per cent as the market witnessed a range bond movement in key stock futures. The volumes in index futures and stocks futures were lower by 9.3 million shares, while it declined by 11.1 million shares in index options.
September futures were traded in the range of 4420 and 4494 and closed at 4460. The futures added an open interest of 2.03 million shares during intra-day trades, but during the close-out session, the open interest declined by 2.58 million shares. This means some F&O players built-up long positions intra-day while others may have covered short positions during the trade-off session.
