NIFTY Futures and Options Trends

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Talking about the Indian derivatives market, the Nifty Futures is closely followed and is very much popular. The Nifty Futures and Options is not only the most traded instrument, but also the most liquid contract too. Nifty Futures contract boasts of being one of the top index futures contracts that are traded in the whole world.

As you would be aware that derivative contract derives its value from an underlying asset, similarly in Nifty futures, the Index is the underlying here. So, the Nifty Futures derives its value from the Nifty Index. When the value of Nifty Index rises, then the value of Nifty futures contract also rises. And, when the value of Nifty Index decreases, the value if Nifty futures also decreases.

As of now, in the month of december’17, the Nifty Future contract (10505.45) is currently trending bullish. The trend is strong bull with low volatility In Dec series Nifty future shed 4.31 lakh position in OI. This means -2.43 % of Total OI in Dec series.

In the options segment, the activity is chiefly limited to the lesser puts even when the put call ratio is at a high. As per the recent trend, the activity is mostly inclined to the call option, though the ratio is still increasing. It can also be said that the Nifty call option is trading at discount, this has made market sentiment at an increased level and people seem cautious. The Nifty Put option is trading at premium so market is hopeful of bearishness.

Recently, the Nifty Put option added 1084.3 lakh position and Nifty call option added 681.19 lakh position in OI on cumulative basis. Talking in terms of value, Nifty Put option added Rs 6457.94 crore and Nifty call option has shed Rs -6046.38 crore on cumulative basis.

The recent trend can be understood with the help of this table:

Nifty call put data:

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