Informist, Monday, Feb 5, 2024
By Anjana Therese Antony
MUMBAI – Some bearishness was seen in the options chain of Britannia Industries Ltd, ahead of the company’s Oct-Dec earnings due Tuesday. Premiums of put strike prices at and below 5,000 rupees rose, while those above 5,200 rupees call contracts declined marginally. Today, the stock closed over 24 rupees lower at 5,124.50 rupees on the National Stock Exchange. The immediate support for the stock is pegged at 5,000 rupees and resistance at 5,200 rupees. If this hurdle is crossed, the stock could test the next resistance of 5,300 rupees, a technical analyst at a domestic broking firm said.
The food products company is expected to post an over-40% on-year decline in its consolidated net profit for Oct-Dec to 5.6 bln rupees, while revenue is seen rising 2.3% to 42.9 bln rupees. The likely on-year drop in the bottomline is attributed to a high base due to a one-time gain of 3.8 bln rupees related to its joint venture with Bel SA for its cheese business.
On the call options side, the premium of 5,200-rupee strike declined by over 22 rupees to 115 rupees. This level has the highest open interest concentration of 142,000 and open interest addition of 47,800. The premium of 5,300-rupee strike also dropped over 14 rupees to 81.10 rupees. This level has the second-highest open interest concentration.
With respect to put contracts at 5,000 rupees, the premium rose nearly 26 rupees to 108 rupees and had the highest concentration of open interest. This is considered as the immediate hurdle for the equity.
With respect to the overall Indian stock market, equities may fall prey to a likely extended profit booking in the next session. Today, investors booked their profit towards the last one hour of trading, with the fall in financial stocks pulling down the Nifty 50 the most. The Nifty 50 closed over 82 points, or 0.4%, lower at 21771.70 points, and the Sensex ended over 354 points, or 0.5%, lower at 71731.42 points. “Nifty (50) is likely to further extend its fall, if put writers exit from 21700 strike,” Ashwin Ramani, derivatives and technical analyst at SAMCO Securities, said in a post-market note. The immediate support for the 50-stock index is pegged at 21600 points and resistance at 21900 points.
–Nifty 50 Feb closed at 21787.00, down 164.40 points; 15.30-point premium to spot index
–Nifty 50 Mar closed at 21932.55, down 155.20 points; 160.85-point premium to spot index
–Nifty 50 Apr closed at 22080.00, down 151.60 points; 308.30-point premium to spot index
Tata Motors, State Bank of India, Indian Oil Corp, HDFC Bank, UPL, Bharat Ptroleum Corp, Coal India, Reliance Industries, InterGlobe Aviation, and Power Finance Corp were the most actively traded underlying stocks. End
Edited by Deepshikha Bhardwaj
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