Riding on Fed’s dovish comments on interest rates at the Jackson Hole Summit, Nifty futures rallied in tandem with the spot Nifty to close atop 25,000-mark on Monday.
In the process, the Nifty September futures ended 0.8 per cent higher at 25,165; commanding a 154 points premium to the spot Nifty close of 25,011 on August 26. Volumes too were on the higher side as traders began shifting positions to the September series. Volumes jumped by over 3-fold in the September series, with open interest rising by as much as 63,460 contracts in Nifty futures.
Meanwhile, the Bank Nifty September futures advanced 0.4 per cent to 51,476, on the back of 2.4-fold jump in trading volumes. The next-month futures contract saw addition of 16,516 contracts and traded at near about 330 points premium to the underlying Bank Nifty.
Key Insights from Nifty, Bank Nifty Options data:
The Nifty Put Call Ratio (PCR) for the August series stands at 1.2, suggesting higher open interest (OI) is Puts as against Calls.
The options market is showing bullish sentiment, with more Puts being written than Calls. The Put-Call Ratio (PCR) has risen from 0.88 on Friday to 1.22, signaling strong bullish momentum, said Dhupesh Dhameja, Technical Analyst at SAMCO Securities in a note.
Substantial open interest at the 25,500 Call (77.80 lakh contracts) and the 25,000 Put (88.75 lakh contracts), with notable activity around the 24,800-24,900 Puts and 25,100-25,200 Calls.
The Max Pain Point, where the most open options contracts are concentrated, stands at 24,900, marking it as a crucial level influencing the index’s movement, Dhupesh said.
In case of Bank Nifty, notable open interest is observed at the 52,000 Call (31.00 lakh contracts) and the 51,000 Put (27.69 lakh contracts), with significant activity around the 51,200-51,300 Calls and 50,800-50,900 Puts.
The Bank Nifty Put-Call Ratio (PCR) has slid from 0.93 on Thursday to 0.76, indicating a slightly sideways to bearish sentiment as the index shows a lack of strong follow-through, keeping the bulls at bay.
The Max Pain Point, where the highest concentration of open options contracts is located, stands at 51,000, making it a critical reference point for the index’s movement, the note stated.
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 26?
As per data from the NSE, FIIs net bought 44,458 contracts of index futures on August 26 for a consideration of Rs 3,060.91 crore. FIIs net bought 21,598 contracts of Nifty futures, while bought 17,681 contracts of Bank Nifty futures and 5,054 contracts of MidCap Nifty futures.
Pursuant to which, FIIs long-short ratio in index futures rose to 1.2:1 – this ratio implies that foreign investors hold more than 1 long position in index futures against each bet on the short side of trade. The FIIs longs in index futures now stand at 55.12 per cent.
Data shows that FIIs have added fresh positions across key index futures – Nifty futures (21,598 contracts), Bank Nifty futures (17,681 contracts) and MidCap Nifty futures (5,054 contracts).
Meanwhile, domestic institutional investors (DIIs) continue to hold near about 2 short positions for every long open position in index futures. DIIs index futures long-short ratio stands at 0.55:1; with net longs at 35.50 per cent.
Retail traders long-short ratio also remained above 1, with marginal increase seen in short positions. Retail traders net long in index futures now stand at 51.11 per cent.
Bullish & Bearish stocks
On Monday, National Aluminium, Birlasoft and SAIL up around 5 per cent each were the top gainers among the 180 futures & options stocks traded in the September series. Among others prominent metal & mining stocks such as – Hindustan Copper, Hindalco, NMDC and Vedanta also logged strong gains.
On the flip side, Zydus Life was the top loser, down over 5.5 per cent. ICICI Prudential Life Insurance, LIC Housing Finance and Apollo Hospitals also ended with losses of around 1 per cent each.
Stocks in F&O ban period
A total of 8 out of the 181 stocks traded in the August series are placed in the F&O ban period on Tuesday. Do note, India Cements will not be traded in the derivatives segment from September series onwards.
Aarti Industries, Aditya Birla Fashion Retail, Balrampur Chini, Birlasoft, Chambal Fertilisers, GNFC, Indian Energy Exchange, India Cements and RBL Bank are the 8 stocks in F&O ban today.
Traders are not allowed to take new positions in stocks placed under the F&O ban. Traders are permitted to only exit existing open positions. In case, any new position is opened during the ban period, exchange levies a penalty on every such trade.
As and when the open interest in the stock falls below 80 per cent of the market wide limit, the stock shall be removed from the ban period.
First Published: Aug 27 2024 | 9:23 AM IST
