Short covering in ATM call options lead Nifty to close above 10300 mark

India Infoline News Service | Mumbai | October 26, 2017 16:16 IST

Tracking the options front, Nifty 10300CE witnessed heavy short covering during the day with decrease in O.I to the tune of ~31 lakh shares as call writers had to run for cover which led to a further surge in the markets

Bull-stock
In today’s trade, markets witnessed heavy volatility before managing to end the day at an all-time high.

Nifty and Sensex managed to end October series at record highs mainly on account of short covering which was witnessed in the last hour of trade.

Nifty Futures witnessed a drop of 31% in O.I ending the day at 10,343 up 0.47%. Nifty managed to end October series 5.88% higher.

Bank Nifty underperformed during the day after yesterday’s stellar performance but still ended the October series 4.22% higher.

Tracking the options front, Nifty 10300CE witnessed heavy short covering during the day with a decrease in O.I to the tune of ~31 lakh shares as call writers had to run for cover which led to a further surge in the markets.

On the other hand, aggressive put writing was witnessed in ATM and OTM strikes. Short covering was also witnessed in Bank Nifty 25000 strike.

Nifty: +48points @ 10343
Bank Nifty -13 points @ 25022
Top 2 F&O Gainer:  SAIL, IFCI
Top 2 F&O Loser: JP  ASSOCIATES, TATA COMMUNICATIONS
Most Active Index Option Contract:
Call Option 10300CE, O.I: ↓ ~31 lakh shares
Put Option: 10300PE, O.I: ↑~ 7 lakh shares
Nifty Max O.I Strikes: 10500CE, 10000PE
Bank Nifty Max O.I Strikes: 25500CE, 24500PE (2nd Nov 2017 Expiry)

 

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