Informist, Thursday, Feb 1, 2024
By Anjana Therese Antony
MUMBAI – Traders were seen as a bit cautious on the shares of Tata Motors Ltd, choosing to avoid solid bets ahead of the company’s Oct-Dec earnings announcement on Friday. Premiums of strike prices across puts and calls, expiring Feb 29, declined slightly. Some analysts do not expect the stock to rise significantly even if the quarterly earnings are in line or above expectations due to the recent upside in the stock.
“In the short term, it (the stock) will maintain bullishness above 860 level,” Emkay Global Financial Services said in a note today. The stock closed nearly 6 rupees or 0.6% lower at 878.50 rupees on the National Stock Exchange. Support for the stock is pegged at 850 rupees and resistance at 900 rupees.
The automaker’s consolidated net profit for the December quarter is expected to grow 62% on year to 47.82 bln rupees and revenue is seen rising 21% from a year ago to 1.07 trln rupees, as per the average of the estimates of eight broking firms compiled by Informist. The robust earnings growth will be backed by improvement in sales volumes of Jaguar Land Rover and passenger vehicles, better product mix, price hikes, and moderation in raw material prices, according to various broking firms.
On the call side, strike prices at and above 880 rupees declined marginally. Open interest in these contracts declined over 408,000 to 2.4 mln. The premium of the 900-rupee strike dropped nearly 1.5 rupees to 26.30 rupees. This level had the highest open interest concentration and second-highest open interest addition.
In terms of puts front, premiums below 860 rupees declined slightly. The 850-rupee strike price had the highest open interest addition as well as concentration.
Benchmark domestic indices, which were choppy during the day, closed a tad lower even after some positive cues from Interim Budget. The weekly expiry of derivatives contracts and profit-booking in some sectors such as banks and financials likely contributed to the sombre mood. The Nifty 50 closed over 28 points or 0.1% lower at 21697.45 points.
Support for the Nifty 50 is pegged at 21600 points and resistance at 21900 points. Analysts continue to expect the 50-stock index to reach its new psychologically important level of 22000 points in the near term.
–Nifty 50 Feb closed at 21741.00, down 67.60 points; 43.55-point premium to spot index
–Nifty 50 Mar closed at 21888.80, down 56.75 points; 191.35-point premium to spot index
–Nifty 50 Apr closed at 22020.90, down 62.35 points; 323.45-point premium to spot index
State Bank of India, Indus Towers, HDFC Bank, Maruti Suzuki India, Punjab National Bank, Adani Enterprises, Canara Bank, Aurobindo Pharma, Adani Ports and Special Economic Zone, and Bank of Baroda were the most-actively traded underlying stocks. End
Edited by Avishek Dutta
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