Home Commodity Market News Equity Futures: Data hints at more weakness for RIL in near term

Equity Futures: Data hints at more weakness for RIL in near term


Informist, Friday, Dec 3, 2021


By Vivek Kumar


MUMBAI – The activity in the futures and options segment of Reliance Industries’ stock indicated that it may see some more weakness going ahead after falling sharply today.


The premiums of 2,400 and 2,300 rupees put options of the stock tumbled around 70% and 90%, respectively. The stock fell 3% to close at 2,408.25 rupees in the cash market today amid fresh rumours that the Department of Telecommunications may hold arm Reliance Jio Infocomm liable to pay part of the 200 bln rupees dues owed by Reliance Communications.


The rumour propelled investors to sell call options of the Reliance Industries’ stock. The premiums of 2,400, 2,500, 2,600 and 2,700 rupees call options slipped 30-40%.


Analysts expect the stock to fall further towards 2,365 rupees in the coming sessions.


Data suggested gains for shares of another oil-exploring company, Oil and Natural Gas Corp. The stock ended more than 1% higher at 145.90 rupees in the cash market today following the company’s deal with Solar Energy Corp of India to scale up its clean energy projects. 


The open interest in ONGC’s December futures contract rose 3% today, suggesting a build-up of long positions. In the options segment, the out-of-the-money call option of 150 rupees strike price saw a surge in open interest along with a rise in its premium. 


There will be some more upside in the stock but it will continue facing resistance at the 150-rupee level, said a derivatives analyst. The support level for the stock will be 140 rupees, the analyst added. 


Meanwhile, Nifty 50 is likely to see volatile trade with investors monitoring news about the Omicron variant of COVID-19.


As the benchmark index fell today after two sessions of gains, traders sold call options of 17400, 17500 and 18000 points.


Among put options, 16400 and 16700 points strike price contracts saw maximum addition of open interest today. While the former’s premium fell over 10%, the latter saw its premium rise by over 20%.


Today, the index closed 1.2% lower at 17196.70 points. The open interest in its December futures fell nearly 3% to 11.4 mln.


-–Nifty 50 Dec ended at 17252.30, down 180.35 points; 55.60-point premium to spot index

-–Nifty 50 Jan ended at 17314.20, down 170.85 points; 117.5-point premium to spot index

-–Nifty 50 Feb ended at 17349.95, down 162.75 points; 153.25-point premium to spot index


The total turnover in the futures and options segment of the NSE was 46.3 trln rupees today, compared with 130.6 trln rupees on Thursday.


The turnover in index options was 43.8 trln rupees compared with 128.4 trln rupees in the previous session. The total premium turnover of index and stock options was lower at 290 bln rupees, compared with 298.7 bln rupees on Thursday.


Reliance Industries, ICICI Bank, Tata Steel, Zee Entertainment Enterprises, Indian Energy Exchange, Infosys, Tata Motors, Bharti Airtel, HDFC Bank, State Bank of India, Tata Consultancy Services, Tata Power Co, Kotak Mahindra Bank and Larsen & Toubro were some of the most actively traded underlying stocks.  End


With inputs from Abhishek Saini

Edited by Pranav S. Joshi


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Source: Cogencis



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