Informist, Thursday, Mar 23, 2023
By Anjana Therese Antony
MUMBAI – Traders sold call options of Nifty 50 at 17100 strike price and put options at 17000 level. Selling pressure was also seen in Nifty Bank index at 40000 strike price as aggressive call writing was seen in the index at this level. Analysts said that the bias is negative for both the indices in the near term, with extra caution being kept towards Nifty Bank, considering the uncertainty persisting in global financial institutions.
Analysts expect the Nifty 50 to bounce at or above 17200 points. However, the index closed below this level for about nine sessions, including today. Therefore, the market is expected to decline slightly. “Maybe 17000-16800 levels will be retested for the Nifty 50 in the coming sessions,” said Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities.
Today, the 50-stock index closed 0.4% lower at 17076.90 points. The support for the Nifty 50 is 16800 points and the resistance is 17200 points for Friday. Some analysts expect the index to trade in a thin range of 16950-17050 points, considering the weak sentiment in global markets, analysts said. Nifty Bank index closed 0.96% lower at 39616.90 points.
Analysts said that the sentiment was negative on the futures front as well. With the monthly expiry of futures contracts on Wednesday next week, some analysts said that if the Nifty 50 closes below 17000 points on Friday, the expiry level for the index will be somewhere near 16600 points.
Ail also said that fresh short positions were added in stocks of automobile and capital goods. He was bullish on shares of pharmaceutical companies, Sun Pharmaceutical Industries and Cipla in particular as these stocks are expected to give 10-15% return in the near term.
In the futures segment, the March contract of the Nifty 50 closed at a premium of 5.1 points to the spot index today. Open interest rose 5.6% to 12.2 mln, as per provisional data.
–Nifty 50 Mar closed at 17082.00, down 103.00 points; 84.75-point-premium to spot index
–Nifty 50 Apr closed at 17176.85, down 100.65 points; 184.40-point premium to spot index
–Nifty 50 May closed at 17239.00, down 99.80 points; 251.35-point premium to spot index
The total turnover in the futures and options segment of the National Stock Exchange was 424.77 trln rupees today, as against 146.51 trln rupees on Wednesday.
The turnover in index options was 421.36 trln rupees, compared with 143.62 trln rupees in the previous session. The total premium turnover of index and stock options was 736.78 bln rupees, compared with 495.77 bln rupees on Wednesday.
Reliance Industries, HDFC Bank, Hindustan Aeronautics, State Bank of India, ICICI Bank, and Vedanta were among the most actively traded underlying stocks. End
Edited by Vidhi Verma
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