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Equity Futures: Down 24% in 4 months, Titan may lose some more shine

Informist, Friday, Jun 17, 2022


By Vivek Kumar


MUMBAI – Having fallen 24% in four months, the shares of Titan Co may lose some more sheen going ahead before seeing any change in trend, analysts said.


The stock fell 6% today to close at 1,936.45 rupees on National Stock Exchange, and also hit a nearly 10-month low of 1,910.55 rupees during the day.


The open interest in the June futures contract of the stock jumped 10% today to 6.4 mln, as traders added short positions fearing a further fall.


“Currently, the stock is in an oversold zone. But if selling continues, it can fall till 1,820-1,850 rupees level,” said Prashanth Tapse, SEBI-registered research analyst and vice-president research at Mehta Equities.


In the options segment, the premiums of 1,800- and 1,900-rupee strike price put options of the stock doubled today. On the call side, 2,000- and 2,050-rupee strike price contracts witnessed maximum addition of open interest, with their premiums falling around 70% each.


The stock will need to close above 2,050-2,060 rupees level in order to witness any change in trend, the analyst said.


Meanwhile, benchmark indices continued to witness selling pressure and ended lower for the sixth session today. The Nifty 50 fell 0.4% to close at 15293.50 points, and for the week, it lost 5.6% amid concerns over global macroeconomic conditions.


While major call options of the Nifty 50 continued to face selling pressure, the put option premiums also fell after sharp gains earlier this week. However, the fall in call option premiums today was more than put options, indicating the underlying market sentiment.


Analysts continued to recommend investors to use any pullback in the market as an opportunity to sell their existing long positions.


The open interest in the June futures contract of Nifty 50 rose 4% today to 11.5 mln, and the contract ended flat.


–Nifty 50 Jun closed at 15348.80, up 0.25 points; 55.30-point premium to spot index

–Nifty 50 Jul closed at 15370.00, up 1.70 points; 76.50-point premium to spot index

–Nifty 50 Aug closed at 15409.95, up 0.70 points; 116.45-point premium to spot index


The total turnover in the futures and options segment of the National Stock Exchange was 61.28 trln rupees, as against 251.44 trln rupees on Thursday.


The turnover in index options was 58.08 trln rupees, much lower than 248.34 trln rupees in the previous session, as weekly options contracts had expired on Thursday. The total premium turnover of index and stock options was 453.45 bln rupees, lower than 587.72 bln rupees on Thursday.

Reliance Industries, HDFC Bank, ICICI Bank, Tata Consultancy Services, Adani Enterprises, Infosys, Bajaj Finance, Maruti Suzuki India, Tata Steel, Tata Motors, Titan Co, Housing Development Finance Corp, Wipro, State Bank of India, Kotak Mahindra Bank, and Bharti Airtel were the most actively traded underlying stocks.  End



Edited by Vandana Hingorani



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Source: Cogencis

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