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Illustration: Binay Sinha
F&O Outlook for August 30: The Nifty extended its rally to the 11th day on Thursday backed by gains in Reliance and select other index heavyweight. The NSE benchmark has rallied more than 1,000 points in this period.
The Nifty September futures gained 0.4 per cent and settled at 25,265, a premium of 113 points as against the spot Nifty close of 25,152. The open interest (OI) rose by 51.3 per cent, with an addition of 1.80 lakh contracts.
Today, the Nifty will seek cues from global market, India’s GDP numbers and the trend in Reliance following the AGM and 1:1 bonus plan.
Technically, the Nifty crossed the hurdle of its previous all-time high and experienced a breakout of a rounding bottom pattern, indicating strength. Based on this breakout, the index could advance towards the 25,500 levels in the short term, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates in a note.
On the downside, the 9-Day Exponential Moving Average (DEMA), positioned near 24,890, will act as immediate support for the Nifty in the short term. As long as the index remains above 24,890, a ‘buy on dips’ strategy should be adopted, the note stated.
Meanwhile, the Bank Nifty September futures ended on a flat note yesterday. The premium rose Rs 285 to Rs 338 per contract on additions of 10,734 new contracts.
Key Insights from Nifty, Bank Nifty Options data:
The Nifty options market has maintained its bullish stance for the fourth consecutive day, with more Puts being written than Calls as the index holds above the 25,000 level, and no close below the last ten-day lows., said Dhupesh Dhameja, Technical Analyst at SAMCO Securities in a note.
Significant open interest at the 25,100 Put (1.69 crore contracts) and the 25,200 Call (1.72 crore contracts) suggests a tight battle between buyers and sellers. The Put-Call Ratio (PCR) has risen slightly from 1.12 on Wednesday to 1.21, highlighting the dominance of Put writers over the past four trading days. The Max Pain Point at 25,100 marks a crucial level that could influence the Nifty’s near-term movement.
In case of Bank Nifty, significant open interest is observed at the 51,500 Call (22.36 lakh contracts) and the 51,000 Put (20.32 lakh contracts), with active trading around the 51,200-51,300 Calls and 50,900-51,100 Puts.
The Put-Call Ratio (PCR) has slightly decreased from 0.89 on Wednesday to 0.79, indicating a sideways to bearish sentiment as Bank Nifty remains stuck in a narrow range of 51,400-51,000, leading to dull momentum and keeping bulls at bay. The Max Pain Point, concentrated at 51,200, is a critical level to monitor for potential shifts in the index’s direction.
FII, DII trading activity in F&O – Here’s all you need to know about who bought and who sold in the derivatives market on August 29?
As per data from the NSE, FIIs net bought 52,815 contracts of index futures on Thursday for a consideration of Rs 3,346.70 crore. Trading activity was largely concentrated in Nifty futures yesterday. FIIs net bought 53,149 contracts of Nifty futures, while bought 50 contracts of Bank Nifty futures and sold 457 contracts of MidCap Nifty futures.
Pursuant to which, FIIs long-short ratio in index futures jumped to 2.3:1 – this ratio implies that foreign investors now hold near about 5 long positions in index futures for every 2 bets on the short side of trade. The FIIs longs in index futures rose to 69.54 per cent.
Meanwhile, domestic institutional investors (DIIs) too raised their long positions marginally – DIIs index futures long-short ratio rose to 0.6:1; with net longs at 37.43 per cent.
On the other hand, retail traders’ long-short ratio dipped to 0.69, thus implying retail traders now hold near about 3 short positions for every 2 long trades in index futures as of August 29.
Bullish & Bearish stocks
As per the per centage change, LIC Housing Finance, Britannia and Naukri are the 3 F&O stocks with highest rollovers in the last four trading sessions. Among which, Naukri has gained 4 per cent, while the other two added mere 0.5 per cent in this period.
On Thursday, Birlasoft, Balrampur Chini and IndiGo saw the highest rollovers, with Birlasoft surging 3 per cent, while Balrampur Chini and IndiGo declining 1.4 per cent and 2 per cent, respectively.
In the run-up to the August expiry, Birlasoft was the top gainer – up 13.2 per cent this week so far. LTIMindtree, Indian Energy Exchange (IEX), Cholamandalam Investment and Finance Company. Power Finance Corporation (PFC), Bajaj Finserv, RECL and National Aluminium were the other top movers, up 6-9 per cent each.
On the other hand, Hindustan Aeronautics, Zydus Life, Ambuja Cements, Bandhan Bank, Bharat Electronics and MRF were the key laggards, down 3-4 per cent each.
Stocks in F&O ban period
There are no stocks in futures & expiry ban period today.
First Published: Aug 30 2024 | 9:23 AM IST
