Derivative Watch: Nifty Range Seen at 8,300-8,600; ACC, Hindalco in Focus

The Nifty ended 29 points higher on Wednesday tracking a late recovery in the Chinese markets. It hit a high of 8,520.45, while on the down side it hit 8,425.95.

Nirmal Bang Securities in a note said looking at the options spread the broad range for Nifty is likely to be 8,300-8,600 for Thursday. Maximum open interest (outstanding positions) remain in 8,600 strike Nifty calls; on Wednesday, OI in the 8,600 strike rose by 4 per cent to 51.8 lakh shares, indicating that Nifty is likely to face resistance around 8,600.

Likewise, maximum open interest was seen in the 8,300 strike Nifty put, which increased 8 per cent to 63.9 lakh shares on Wednesday, indicating Nifty will get support around 8,300 levels on the down side in case of corrections.

Overall, Nifty puts added 48.1 lakh shares in open interest and calls added 8.4 lakh shares, taking the put-call-ratio (PCR) to 1.04 from 0.98 on Tuesday. A PCR of more than 1 suggests that market is firmly in the bull grip and is likely to get support in case of any correction.

Among Nifty stocks ACC and HCL Tech witnessed increase in bullish bets as these stocks gained on Wednesday along with open interest increase. Similarly Hindalco and SBI will be in focus today as bearish bets increased in these stocks. Hindalco shares fell 3.1 per cent on Wednesday along with 3 per cent increase in open interest and SBI shares fell 2.4 per cent along with 1 per cent increase in open interest.

Among non-index stocks, JP Associates witnessed maximum increase in bullish bets; open interest in the stock increased 6 per cent along with 9.5 per cent gain.

On the other hand, Hindustan Zinc, Indiabulls Real Estate and Allahabad Bank saw increase in bearish bets. Open interest in Amtek Auto shares shed 23 per cent on Wednesday as the stock is getting excluded out of the derivative segment from October.