F&O tracker: Market mood remains bearish for December

The Nifty rollover figure for November, as of now, is decent at around 53% when compared to 41% on the same day last month. FII's build up in Index futures in the last week is also notable, and is suggestive towards a hedging approach. However, except for this period, the exchange traded values of equity derivatives had shown a dip for most part of the month, presumably due to the lot size increase that became effective since late October.

The option picture for the November series in Nifty is showing profit booking in most of the Out-of-the money Call and Put options. A few at-the-money Call and Put options especially 7950, 7900 and 7850 strikes on the Call side and 7850, 7800 and 7750 strikes on the Put side have seen short build up which indicates that traders have sold strangles in the anticipation of a range bound move for the current series within 7700 and 7900.is point, is indicating that trad December series, at this point, is indicating that traders are bearish on the market.

We are seeing short positions being created in Out-of-the money Call strikes up until 8200 and fresh longs in In-the-money Put strikes from 8300 to 7900 levels. Similar trend is visible in Bank Nifty as well with some short positions seen in At-the-money Call and Put strikes indicating that traders expect a range bound move on the expiry day. In December series, Bank Nifty has seen fresh shorts across most of the active Out-of-the money Call strikes up until 17800 while Fresh longs are seen in Put strikes up until 16100 levels.