13,200 bulls’ target for November expiry

Mumbai: With markets having comfortably surpassed the 13,000 psychological barrier, rising almost 12 per cent so far in the current series, Nifty bulls are now aiming for the upper band of the 12,600-13,200 range for November expiry, due Thursday. Post this, markets could consolidate with a positive bias, said analysts.The precise range, based on the 13,000 straddle value — combined call and put option price — at closing Tuesday, is 12,833-13,167. As the risk-on rose, MCX gold futures shed 1.85 per cent while silver futures traded 2.5 per cent lower.Such has been the confidence of bulls that they sold a massive 26.63 lakh shares (75 shares make one lot) at the 13,000 put, with the market closing just 55 points above this strike. This put, with 37.11 lakh shares, has the third - highest open interest after the 12,800 put, making it a strong support.Simultaneously, both, 12,900 and 13,000 calls, saw significant short covering, showing bears have been trumped for now by the momentum."The heavy put writing is a clear signal that bulls don't expect the market to fall from current levels, said Rajesh Palviya, derivatives head, Axis Securities. "I am expecting the series to end nearer to or at 13,200."Every rise in the market in the current series has seen massive put writing at or slightly out of the money, with massive short covering of calls, and Tuesday was no different . The active options' put call ratio rose to 1.63 from 1.31 Monday."The market could test the 13,200 mark before consolidating with a positive bias,” said Amit Gupta, fund manager, Isec PMS. "Post this action will be stock specific."Not all market mavens are as optimistic though. UR Bhat, director Dalton Capital Advisors, expects the market to pull back to 12,600 initially, after or at the end of November , when the MSCI flows come through.

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