F&O Manual: Bulls dominate trade, Adani Group stocks in focus

The market was trading higher on March 3 morning, with all sectors and segments seeing buying interest. At 10.20 am, the Nifty was up 194 points, or 1.12 percent, at 17,521.

The gap-up opening led to a scramble among call writers to shift positions higher. Similarly, most put writers also moved to 17,500, expecting it to act as a battle zone for the day.

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

Traders said they expect the market to hold on to the gains, though uncertainty continues. The sentiment also improved due to big bang investments in Adani Group companies by investment firm GQG Partners.

Also read: Adani stocks soar after GQG Partners invest Rs 15,446 cr in group firms

On March 2, the promoters of the Adani group sold shares worth Rs 15,446 crore in four of its listed entities to GQG Partners, a US-based global equity-investment boutique firm.

Adani Enterprises sold shares worth Rs 5,460 crore, Adani Ports & SEZ Rs 5,282 crore, Adani Green Energy Rs 2,806 crore and electricity distributor Adani Transmission sold shares worth Rs 1,898 crore. The proceeds will be used by the promoters to retire debt and for other purposes.

India VIX, the measure of volatility, also eased significantly.

Bullishness was seen across sectors. All sectors present in the F&O segment saw a long build up as prices rose along with open interest. Infra and banking were especially under focus.

Adani Enterprises saw a massive long buildup as well as it continued to recover its losses. Bank of Baroda, SBI, Canara Bank and ACC were others that saw a long buildup. Adani Ports, meanwhile, saw short covering.

A bearish setup was seen in Shree Cement, UltraTech Cement and IEX.

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