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Equity Futures:Data hints more fall in Nifty 50, may test 15000 soon

Informist, Thursday, Jun 16, 2022

 

By Vivek Kumar

 

MUMBAI – Traders bought out-of-the-money put options of 14500 and 15000 points of Nifty 50 today as fear of more aggressive policy tightening by the US Federal Reserve grappled investors, and kept sentiment for equities subdued.

 

The Nifty 50 fell over 2% today to close at its lowest level in over a year at 15360.60 points. This was the fifth consecutive session where the 50-stock index ended in the red.
 

The open interest in the June futures contract of the Nifty 50 surged 18.6% today to 12.5 mln, indicating an aggressive build-up of short positions.

 

With near-term sentiment tilting on the negative side, analysts see the benchmark index heading towards 15000 points, where it could find some psychological support. In case it breaches that level, the next major support level would be 14500 points.

 

In the options segment, the premium of 15000 points put option, expiring on Jun 23, jumped nearly three-fold today, and were up four-fold for the month. Similarly, the premium of 14500 points put option also jumped three-fold today, and were up manifold this month.

 

Nifty 50 is expected to move with negative bias and one can utilise any bounce back as a selling opportunity as long as the index is below 15735 points level, said Chandan Taparia, vice president, equity derivatives and technical, broking & distribution at Motilal Oswal Financial Services.

 

On the call side of the Nifty 50, traders sold 15700 and 16000 points strike prices, which sent their premiums tumbling around 71% and 82%, respectively.

 

With market sentiment negative, the view for major sectoral indices too was subdued. Analysts recommended investors to take s stock-specific approach in the current environment.

 

The market breadth was sharply negative today, and that saw bearish positions being built-up on many counters including Tata Steel, Hindalco Industries, Tata Motors, Bharti Airtel, Tech Mahindra and Wipro.

 

 

–Nifty 50 Jun closed at 15339.95, down 368.70 points; 20.65-point discount to spot index

–Nifty 50 Jul closed at 15352.00, down 376.90 points; 8.60-point discount to spot index

–Nifty 50 Aug closed at 15392.00, down 376.80 points; 31.40-point premium to spot index

 

The total turnover in the futures and options segment of the National Stock Exchange was 251.44 trln rupees, as against 79.33 trln rupees on Wednesday.

 

The turnover in index options was 248.34 trln rupees, much higher than 77.39 trln rupees in the previous session, as weekly options contracts expired today. The total premium turnover of index and stock options was 587.72 bln rupees, lower than 335.22 bln rupees on Wednesday.

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

 

 

Edited by Arshad Hussain

 

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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