Activity In F&O

Activity in F&O

Nifty October future closed negative on Wednesday at 4826.55 levels. Nifty futures saw increase in OI to the tune of 2.13% with fall in price by 0.45%. Market opened negative with a gap of 18 points as taking cues from global market. Market witnessed selling pressure in Capital Goods, Banking, PSU, Auto, Power and Metal sector stocks whereas saw buying interest in Realty, Tech, Oil & Gas, Capital Goods, IT and Health Care sector stocks. Nifty October future premium remained flat as compare to previous day’s premium of 2 points. Nifty future finally closed negative with the loss of 22 points from previous trading day. FIIs were buyers in index futures to the tune of 119.13 Cr and buyers in Index option to the tune of 190.45 Cr. The F&O segment of the market saw decrease in turnover as compared to previous trading session. The market turnover decreased by 11.90 percent in terms of number of contracts traded vis-à-vis previous trading day and in terms of rupees decreased by 12.48 percent.

Indication & Outlook

The PCR OI of NIFTY has changed from 1.09 to 1.06 levels thus indicates selling pressure in the market at current levels. IV of NIFTY has changed from 26.26 to 26.95 thus indicating range bound move in the market. Nifty futures saw increase in OI with fall in price indicating built of short positions in the market at current levels. Conclusion

Overall data indicates that we can see negative to range bound move in the market at current levels. If Nifty future sustains below 4750 levels then selling pressure may get intense in the market and Nifty may correct further till 4700-4680 levels. Buying interest may emerge in the market if Nifty sustains above 4900 levels.