Selling of at -the- money puts 13,500 — with the Nifty at 13,517 — means sellers don’t expect the market to fall , which, in turn, would help them pocket the premium paid by the put buyers.
Put buyers expect a decline below the strike sold minus premium paid (to the seller ) while put sellers expect the market to trade above the strike sold minus premium received from the buyer.
The 13,500 put expiring December 24 witnessed addition of 18.84 lakh shares (75 shares make one contract) to 29.19 lakh shares intraday, while the 13,500 call saw addition of 9.3 lakh shares to 29.2 lakh shares.
The range for the market is 13,360-13,640, with bias for the upside for now, feels Rajesh Palviya, derivatives head, Axis Securities.
FIIs continue to buy on dips , which is supporting the market. In the fiscal year to date (FY21) they’ve invested almost Rs 2.09 lakh crore in Indian shares. That’s the highest ever investment in any fiscal.
