Heavy foreign buying in options points to big move

Overseas investors bought Indian equity derivatives worth 41.22 billion rupees ($677.4 million) on Tuesday, NSE data shows.

The amount included 28.53 billion rupees 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," says a derivatives analyst at a foreign broker.

Data shows 2 million 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 shows 1.4 million call contracts added at 8,000 level and 0.9 million for 8,100 August strike.