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Equity Futures: Nifty 50 set to hit 18000-mark if momentum sustains

Informist, Thursday, Sep 23, 2021

 

By Vidya Sreedhar 

 

MUMBAI – A comeback of the momentum in global equities with concerns around the potential default by China’s Evergrande Group ebbing, saw bulls in the domestic market come roaring back, as the Nifty 50 crossed the 17800-point mark and also

ended comfortably above that level.

 

A move above 17800 points, turned call buyers active and saw them accumulating the 18500 call option of the 50-stock index, expiring on Sep 30. The call option was the most actively traded as it added 2.5 mln shares in open interest, with premium rising by nearly 30%. 

 

The 18500 strike price call option also holds the highest open interest, and if the current momentum sustains, then the index can scale the level before the expiry of the current month series. 

 

Today, the Nifty 50 ended 1.6% higher at 17822.95 points, after scaling a lifetime high of 17843.90 points during the day. 

 

While activity in the options was prominent, it was muted in the futures segment, which reflects in the just 1% fall in open interest. 

 

Among stocks, Bajaj Finserv was one of the most actively traded ones, with traders adding significant long positions in both futures and options segments. The stock scaled a lifetime high of 18,750 rupees in the cash market today, and positioning in the options shows that it is poised to test 19,000 rupees if the momentum sustains. 

 

The 19,000 rupees and 19,600 rupees call options were the most actively traded contracts today, with premiums in them nearly trebling. 

 

-–Nifty 50 Sep ended at 17842.00, up 273.50 points; 19.05-point premium to the spot market

-–Nifty 50 Oct ended at 17869.10, up 266.85 points; 46.2-point premium to the spot market

-–Nifty 50 Nov ended at 17895.35, up 263.60 points; 72.4-point premium to the spot market

 

Total turnover in the futures and options segment of the NSE surged to 124 trln rupees today from 61 trln rupees Wednesday. 

 

The turnover in the index options was 119 trln rupees, way higher than 56 trln rupees in the previous session. The total premium turnover of index and stock options was 332 bln rupees compared with 280 bln rupees on Wednesday. 

 

Reliance Industries, Zee Entertainment Enterprises, Tata Steel, ITC, United Spirits, HDFC Bank, Bajaj Finance, and Tata Steel were the other most actively traded stocks today.  End

 

Edited by Michael Correya

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2021. All rights reserved.

Source: Cogencis

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