Options suggest India`s NSE support at 5,800

Options suggest India's NSE support at 5,800

Last Updated: Wed, Jul 10, 2013 08:37 hrs
BSE Sensex hits 32-month high

Investors added 1 million positions in July put options for the NSE index at 5,800 levels on Tuesday.

Foreign institutional investors have also bought 6.6 billion rupees ($109.41 million) worth of NSE index options, exchange data shows.

The two developments are seen as potentially providing support for the spot NSE index at 5,800 points - which is also near its 200-day moving average - after a volatile year that has seen the benchmark fall to as low as 5,477.2 in April.

"There is some base creation seen and declines in the market should be utilised to buy individual stock futures," said Amit Gupta, head of derivatives at ICICI Securities.

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