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Equity Futures: Sustenance above 18000 crucial for Nifty 50 ahead

Informist, Tuesday, Jan 18, 2022

 

By Vivek Kumar

 

MUMBAI – With data indicating more weakness for domestic equities in the forthcoming sessions, it will be crucial for the benchmark Nifty 50 to stay above the support level of 18000 points, market participants said.

 

The Nifty 50 witnessed its biggest fall in January today as the spike in US yield triggered a sell-off in the shares of technology companies and also dampened the momentum for risky assets such as equities. 

  

Fearing a further fall, traders sold call options today and accumulated put options. The premiums of 18200, 18300, 18400 and 18500 points call options slipped 60-80%, while those of 17800 and 17900 points put options more than doubled.

 

The Nifty 50 has corrected right from near its key resistance level, and going ahead 18000 points will be the key support level to watch out for, said Rajesh Bhosale, technical analyst at Angel One. If 18000 points level is defended, then there is no issue, otherwise there may be further correction towards 17750 points, he added.

 

Today, the Nifty 50 closed over 1% lower at 18113.05 points. The January futures contract of the index ended largely at par with the spot market level with a 2.6% rise in open interest to 10.45 mln.

 

Among specific sectors, the analyst believes information technology companies may remain weak in the near term with support for the Nifty IT index placed at 37500 points.

 

-–Nifty 50 Jan ended at 18113.70, down 222.9 points; 0.65-point premium to spot index
-–Nifty 50 Feb ended at 18150.00, down 234.3 points; 36.95-point premium to spot index

-–Nifty 50 Mar ended at 18215.00, down 221.7- points; 101.95-point premium to spot index

 
The total turnover in the futures and options segment of the NSE was higher at 86.6 trln rupees compared to 46.2 trln rupees on Monday.
 
The turnover in index options was 82.3 trln rupees, against 42.1 trln rupees the previous day. The total premium turnover of index and stock options was at 370.5 bln rupees compared to 242 bln rupees on Monday.
 
The most actively traded underlying stocks included Axis Bank, ICICI Bank, HDFC Bank, Tata Motors, Reliance Industries, Tata Power Co, Bajaj Finance, Adani Enterprises, HCL Technologies, Tech Mahindra, Tata Steel, Tata Consultancy Services and Apollo Hospital Enterprises.  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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Source: Cogencis

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