Derivatives Analysis for Traders: Bulls in total control

Market commentary: On 17th November, 2020, benchmark indices opened with gains of around 60-70 points in line with positive cues from global markets. Thereafter, the Nifty remained range bound in the first half. In the post lunch session, the Nifty recovered due to buying in metal and banking stocks. Nifty, FMCG and media indices closed in the red zone while Nifty Finance, Pharma and Reality indices closed in the green zone. Stocks like TATAMOTORS, TATASTEEL, HDFCLIFE, SBIN and ADANI PORTS were top gainers gaining around 3-6% while stocks like BPCL, HEROMOTOCO, NTPC, IOC and ONGC were top losers that fell around 2-4%. Nifty closed around 12874 levels with a decent gain of 0.80%.

Derivatives summary:

Nifty November futures closed at a premium of 7.65 points versus a premium of 8.65. The market added Rs 31898 cr in open interest, taking the total open interest in the F&O segment to Rs. 478835 cr. The Nifty call option added 25.96 lk shares in open interest and the put option added 41.57 shares in open interest. HEROMOTOCO (13%), TORNTPOWER (12%), CUMMINSIND (12%) MFSL (11%) and NMDC (9%) were the top gainers in terms of open interest. CONCOR (-9), BALKRISIND (-8%), TATAMOTORS (-8%), APOLLOHOSP (-7%) and BALKRISIND (-7%) were the top losers in terms of open interest. Overall futures & options volumes currently stand at 182.05 lakh contracts, with a turnover of Rs 1457284 cr. Volumes in F&O were lower as compared to the previous trading session.

Daily view:

About 0.40 lakh shares were added in open interest with an increase in prices this indicates that long built up was observed by market participants.On the options front, the volatility index increased by 3.52%.