>Daily Derivatives (ICICI Direct)

• Further short covering was seen in the Nifty March series, which depicted a decline in OI by 1.54 million shares. The April series added 2.17 million shares in OI

• The options data shows maximum addition of OI in the 2800 strike price option whereas unwinding was seen in almost all other strikes. The 2800 Put added 17074 contracts with drop in IV from 34.73 to 32.06. In the past two sessions Put writing was seen in the 2800 Put since nearly 12 lakh shares got added in this Put. However, a decent number of Put buyers at this strike price are still standing in the system. Unwinding of 7482, 8373 and 4016 contracts was observed in the 2700, 2600 and 2500 Puts, respectively. For the first time, we have seen unwinding by Put buyers at 2700 and 2600. Also, the 2700 Put base with 7.66 million shares in OI currently stands as the second largest options base after 2500. Unwinding by Call buyers was also noticed in the 2700 Call. Some Call writing was seen in the 2800 Call, which added 4578 contracts. We feel, the 2700 level could continue to act as a decent support for it in the coming sessions on closing basis

• FIIs were net sellers to the tune of Rs 149 crore. DIIs were net sellers to the tune of Rs 94 crore

To see full report: DERIVATIVES 230709