Closing Commentary: Nifty Futures regains lost territory of the 10K mark

India Infoline News Service | Mumbai | October 06, 2017 15:51 IST

Bull Market
In today’s trade, markets were on a hot streak as all the major indices shimmered.

Nifty closed up 0.92%, posting highest gains since August 14, 2017. Nifty futures contract continued to add fresh open interest to the tune of ~3.9 lakh shares, mainly long positions.

Since the start of October expiry Nifty futures has added ~39 lakh shares in open interest i.e an increase of ~19%, while the underline price have moved up by 1.9%, indicating a formation of long positions.

Tracking the options front, Nifty 10000CE and 9800PE continue to remain the maximum open interest strikes. Short covering was seen in Nifty 10000CE as the open interest shed ~5.25 lakh shares, but still the same strike has total open interest to the tune of ~42 lakh shares, mainly the short position, so any close for the index above the resistance zone of 10000-10050 mark may lead to huge short covering in the ATM strike of 10000, which can lead to a further upsurge in the index.

India Vix index closed ~5% lower.  

Nifty: +91 points @ 9979
Bank Nifty:  +131 points @ 24190
Top 2 F&O Gainer: SOUTH INDIAN BANK, GRANULES INDIA.
Top 2 F&O Loser: DEWAN HOUSING, STRIDES SHASUN.

Most Active Index Option Contract:
Call Option:  10000CE, O.I: ↓~5 Lakh shares
Put Option: 9900PE, O.I:  ↑ ~12 lakh shares
Nifty Max O.I Strikes: 10000CE, 9800PE
Bank Nifty Max O.I Strikes: 24500CE, 24000PE (12th Oct 2017 Expiry).