Synopsis
The Nifty could trade in a range of 14,423 -14,977 with a bias for the upside before settling around 14,700-14,750 at the expiry of the January derivative series, options data show, for now.
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If the Nifty moves sharply above or below the range of 14,423-14,977 at expiry, she would face huge losses.
Mumbai: The Nifty could trade in a range of 14,423 -14,977 with a bias for the upside before settling around 14,700-14,750 at the expiry of the January derivative series, options data show, for now.
Traders sold huge quantities of calls and put options at the 14,700 strike or level. Based on provisional closing rates a trader would receive Rs 277 a share (75 shares make one lot) from a combined sale of calls and puts to the buyers. This means as long as Nifty doesn’t expire above 14,977 or below 14,423, she makes money. Her maximum gain of Rs 277 would ensue if Nifty settled at 14,700 on January 28, when the current derivatives series expires. If the Nifty moves sharply above or below the range of 14,423-14,977 at expiry, she would face huge losses.