Informist, Monday, Jul 17, 2023
By Anjana Therese Antony
MUMBAI – Ahead of its earnings on Tuesday, options data shows the IndusInd Bank stock may inch higher in the near term. “There is good writing at 1400 level and is acting as a hurdle now,” said a technical and derivatives analyst at a domestic-bank owned broking firm. Support for the stock is seen at 1,380 rupees, the analyst said.
For Apr-Jun, IndusInd Bank is expected to report 28.1% on-year growth in net profit at 20.89 bln rupees, as per the average of the estimates of 11 broking firms. The expected rise in the bottomline is attributed to strong loan growth and lower provisioning.
The bank’s net interest income is seen growing 17.3% from a year ago to 48.40 bln rupees.
“If the results (of IndusInd Bank) are in line with expectations, we could see short-covering at the hurdle level,” said the analyst.
On the call side of IndusInd Bank, the highest open interest concentration of nearly 1.4 mln was at the 1400-strike. The premium at this level increased by 12.80 rupees to 37.05 rupees. However, on the put side, the premium of the 1380-strike fell by 5.25 rupees to 24.30 rupees and open interest rose by 42,500 to over 317,000.
In terms of bank stocks, a few analysts said bulls were back for the Nifty Bank, after the index closed lower on most sessions last week. The index could be the top performer among sectoral indices and should move up hereafter, they said. Support for the index is pegged at 44500 points and resistance at 46000 points.
Today, the Nifty Bank closed 1.4% higher at 45449.75 points.
Amid the bullish sentiment, benchmark equity indices hit new all-time highs during the day and closed higher for the third straight session. The Nifty 50 and the Sensex ended 0.8% higher each at 19711.45 points and 66589.93 points, respectively. Immediate support for the 50-stock index is seen at 19650-19600 points and resistance at 19800 points.
Some analysts said the Nifty 50 could reach 20000 points in a couple of sessions or may be before the expiry of the weekly options contracts on Thursday. The 50-stock index is nearly 290 points away from its next psychologically important level of 20000 points.
Meanwhile, provisional data showed open interest in the July futures contract of the Nifty 50 rose 3.5% to 11.00 mln.
–Nifty 50 Jul closed at 19729.95, up 131.10 points; 18.50-point premium to spot index
–Nifty 50 Aug closed at 19822.80, up 127.30 points; 111.35-point premium to spot index
–Nifty 50 Sep closed at 19927.20, up 124.70 points; 215.75-point premium to spot index
HDFC Bank, Reliance Industries, Infosys, State Bank of India, ICICI Bank, Zee Entertainment Enterprises, Tata Consultancy Services, Wipro, LTIMindtree, and Grasim Industries were among the most actively traded underlying stocks. End
Edited by Avishek Dutta
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