Options Indicate 9,200 As Upper-End Of Range For April Expiry
Maximum Open Interest Remains With Nifty 9,000 Put and 9,200 Call
The Nifty 9,200 Call option was the most active and saw maximum selling even as the 50-share index retreated further away from the level on Friday. The 9,200 call was also witnessed maximum open interest, indicating an upper end for the Nifty range as markets approach expiration of April contracts this Thursday. Considering maximum open interest in puts, the 9,000 level is likely to provide support over the next four sessions.
Foreign investors sold index futures worth Rs 1,238 crore on a net basis. FIIs unwound 13,907 index futures contracts and sold further 4,379 contracts on a net basis. Further, 13,462 index put contracts were added against unwinding of 350 index call option on a net basis. Both these factors reflect near term caution from FII point of view.
The India Volatility Index (VIX) too declined 1.3 percent to close at 11.42.
With four days to go for expiry, traders carried forward 18 percent of their positions in the Nifty a tad higher than the previous 3-month average of 17 percent.
