Volatility on card
“Post some consolidation, the benchmark index started-off the session with an upside gap on back of strong global cues. Nifty extended its gains during the day to finally conclude to session above 10000 marks.
On derivatives segment, Nifty added fresh open interest of 2%; while, we witnessed massive build-up in BankNifty as open interest surged 24.34% today. In Nifty options, 10200 call option added fresh positions; followed by unwinding in 9800-10000 call options. On the flip side, good amount of open interest addition was seen in 9900-10000 put options along with unwinding in 9600 strike. Maximum concentration in put option had now shifted higher to 9900 from 9700 strike and of call option remains intact in 10000 strike price.
September series began with lowest open interest in the index for calendar year 2017. However, we have been consistently observing good amount of build-up in both indices. During the series, Nifty and BankNifty added open interest of 25% and 44.54% respectively which is mixed position. At the same time, PCR-OI has again surged higher to 1.43. Taking into consideration the above F&O activity, we expect market to remain volatile going ahead. Thus, traders are advised to remain light in index and prefer stock specific approach.”