F&O data shows D-Street expects Nifty50 base to shift lower in May
Fresh Put writing was seen at strike price 7,700, where 4.42 lakh contracts were added, taking forward the total Put open interest to 42.45 lakh contracts.
By Chiranjivi Chakraborty, ET Online | Updated:
NEW DELHI: Fresh Put writing in the out-of-the-money strike prices of 7,400-7,200 indicates possible selling pressure on the index, although maximum Put open interest (OI) stood at strike price 7,700, which should continue to provide support.
Fresh Put writing was seen at strike price 7,700, where 4.42 lakh contracts were added, taking the total Put open interest to 42.45 lakh contracts.
Fresh Put writing was seen also in the far out-of-the-money strike prices at 7,600 (5.82 lakh contracts added), 7,500 (4.19 lakh contracts added) and 7,400 (7.32 lakh contracts added), indicating that traders expect the market’s base to shift lower during the May series.
“Unexpectedly, deep out-of-the-money Put options at strike prices 7,200 and 7,400 saw fresh buildup. Some OI addition was seen in the Put option of strike price 7,800,” brokerage Angel Broking said in a report.
“Lack of leveraged buying was seen in the market in last trading session. There was huge buildup in options, with Put options at 7,200 and 7,300 seeing significant OI addition while Call options at strike prices 7,900 and 8,100 remained active,” Siddharth Bhamre, technical expert at ET Now, told ETMarkets.com.
On the Call front, fresh writing to the tune of 7.19 lakh contracts was seen at strike price 8,200. That took the maximum OI at strike price 8,200 to 39.92 lakh contracts, indicating that this level will act as a tough resistance on the upside.
Fresh Call writing was seen also at strike prices 7,900 (10.96 lakh contracts added), 8,000 (8.76 lakh contracts added) and 8,100 (10.80 lakh contracts added).
FIIs were net sellers in both cash market as well as index futures. They sold equities to the tune of Rs 205 crore. In index futures, they sold positions worth Rs 268 crore with a rise in OI.
“After a long time, we are witnessing selling in both cash market as well as index futures, at the same time out-of-the-money Puts are also seeing decent build-up,” Angel Broking said.
“Seeing this data, we would suggest traders to trade light as of now,” it added.
F&O trends:
Price rise with a rise in open interest suggests long buildup. Here is a list of top stocks where long positions are building up.
A fall in price with a rise in open interest suggests short buildup. Here is a list of top stocks where short positions are building up.
Fresh Put writing was seen at strike price 7,700, where 4.42 lakh contracts were added, taking the total Put open interest to 42.45 lakh contracts.
Fresh Put writing was seen also in the far out-of-the-money strike prices at 7,600 (5.82 lakh contracts added), 7,500 (4.19 lakh contracts added) and 7,400 (7.32 lakh contracts added), indicating that traders expect the market’s base to shift lower during the May series.
“Unexpectedly, deep out-of-the-money Put options at strike prices 7,200 and 7,400 saw fresh buildup. Some OI addition was seen in the Put option of strike price 7,800,” brokerage Angel Broking said in a report.
“Lack of leveraged buying was seen in the market in last trading session. There was huge buildup in options, with Put options at 7,200 and 7,300 seeing significant OI addition while Call options at strike prices 7,900 and 8,100 remained active,” Siddharth Bhamre, technical expert at ET Now, told ETMarkets.com.
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On the Call front, fresh writing to the tune of 7.19 lakh contracts was seen at strike price 8,200. That took the maximum OI at strike price 8,200 to 39.92 lakh contracts, indicating that this level will act as a tough resistance on the upside.
Fresh Call writing was seen also at strike prices 7,900 (10.96 lakh contracts added), 8,000 (8.76 lakh contracts added) and 8,100 (10.80 lakh contracts added).
FIIs were net sellers in both cash market as well as index futures. They sold equities to the tune of Rs 205 crore. In index futures, they sold positions worth Rs 268 crore with a rise in OI.
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“After a long time, we are witnessing selling in both cash market as well as index futures, at the same time out-of-the-money Puts are also seeing decent build-up,” Angel Broking said.
“Seeing this data, we would suggest traders to trade light as of now,” it added.
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F&O trends:
Price rise with a rise in open interest suggests long buildup. Here is a list of top stocks where long positions are building up.
A fall in price with a rise in open interest suggests short buildup. Here is a list of top stocks where short positions are building up.
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These stocks have also seen strong price appreciation during the last one month, and traders are anticipating the gains to continue this month also.
Options data indicate that market participants have taken bullish positions as volume concentration is seen at higher strike prices. ET brings top fi ve momentum stocks for May series.
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