Heavy foreign buying in equity derivatives points to a big move

Overseas investors bought Indian equity derivatives worth Rs 4,122 crore on Tuesday, NSE data showed. The amount included Rs 2,853 crore worth of index options.

“This kind of buying in Nifty options happened in March and April and is pointing towards a big move on the long side even from record highs,” said a derivatives analyst at a foreign broker.

Data showed that 20 lakh August put contracts added for NSE at 7,900 level. Concentration of put contracts has also shifted from 7,600 to 7,700 for the August series, implying a support around 7,700 levels.

Data also showed that 14 lakh call contracts added at 8,000 level and 9 lakh for 8,100 August strike.