F&O Manual: Traders expect more volatility; individual stocks in focus

On the option front, 17,200 strike saw most put writing, which means it is emerging as a fresh support zone for the day. Meanwhile, call writers were scattered across the strikes as they tried to put pressure on bulls.

The market started the last trading session of the financial year 2022-23 on a high note but traders were unconvinced and warned of volatility. The Nifty started the new series rising a percent, or 171 points, to trade at 17,252 at 10.30 am.

All sectors were traded with gains. Banking and metals stood out, as they were the biggest support for the index.

“The market will be volatile and hence retail traders should stay on the sidelines,” said Rajesh Sriwastava, a Bengaluru-based derivatives trader. Some other traders also underlined that choppiness was expected in the second half of the day.

The bars reflect a change in open interest (OI) during the day. The red show call option OI and the green put option OI.

On the option front, 17,200 strike was seeing the most put writing, which means it is emerging as a fresh support zone for the day. Call writers were scattered across the strikes as they tried to put pressure on bulls.

Action in individual stocks was heightened, Some stocks, especially Polycab India, Indraprastha Gas and Piramal ENterprises, saw an accumulation of positions. They have seen 150 to 100 percent position on the last three months' average.

Sriwastava said traders can keep an eye on these stocks.

Defence PSUs were in focus on bagging big orders from the government. BEL and Hindustan Aeronautics saw a long buildup, which is a bullish phenomenon. On the other hand, Gujarat Gas and Lupin saw a bear onslaught.

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