Strong support at 4600

F&O OUTLOOK

The trading activity was subdued on Thursday as the markets were apparently digesting yesterday's spectacular gains. The Nifty September futures open interest stood at 33 lakh shares compared with the previous day's 33 lakh shares.

This amounted to a reduction of 1.49 per cent. The reduction in open interest suggests an element of unwinding across counters. This could indicate profit booking, especially given the one-way rise post the Fed rate cut and the impending weekend.

The highest Put OI on the Nifty was seen at 4,600 levels. The 4600 Put OI increased from 23 lakh shares to 25 lakh shares on Thursday. This indicates a strong support at the 4600 level.

The Nifty PCR open interest increased to 1.68 on Thursday from 1.64 on the previous trading day. The Nifty Call options added 1.3 lakh shares and stood at 182 lakh shares. The Nifty Put options added 9.3 lakh shares in OI and stood at 306.76 lakh shares.

There was a strong build up of OI in 3i Infotech to the extent of 83.75 per cent. Lanco Infra followed next, at 42.97 per cent and Sun Pharma registered an increase of 37.56 per cent.

There was also a strong build-up in Oriental Bank (35.52 per cent), ABB (34.09 per cent) and Triveni Engineering (31.82 per cent). The Nifty implied volatility increased to 33.48 per cent from 29-30 per cent.

The Bombay Stock Exchange's Sensex added 25.20, or 0.2 percent, to a record 16,347.95, after yesterday exceeding 16,000 for the first time. The S&P/CNX Nifty Index on the National Stock Exchange climbed 15.20, or 0.3 percent, to 4,747.55. Nifty futures for September delivery rose 0.1 percent, to 4,748.