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Equity Futures: Options data show 15700 pts key support for Nifty 50

Informist, Wednesday, Jun 29, 2022


By Vaibhavi


NEW DELHI – The Nifty 50 witnessed yet another session of range-bound movement and ended marginally lower today. However, options data suggests that a recovery for the index may still be on the cards as long as it holds above 15700 points.


Weakness across global markets amid persisting concerns over an economic downturn weighed on the Nifty 50 as the index opened lower and remained in the red for most part of the session today.


Given the prevailing fears around recession, investors will keenly watch out for the final US GDP data for Jan-Mar due to be released later today. 


If the data is disappointing, it can trigger a fall across global markets. In such a scenario, the Nifty 50 may fall but find a strong support at 15700 points, said Ruchit Jain, lead research at 5paisa.com, adding that a fall below that level can turn the overall sentiment negative. 


The view was also reaffirmed by put options data, as the 15700 strike price saw the maximum addition of open interest.


In case of a positive reading of the GDP data, the Nifty 50 can inch higher towards 15850-15900 points, to settle around those levels when the June derivatives series ends on Thursday, Jain said. 


Amid caution ahead of the US data, investors were seen unwinding long positions in the June futures contract of the Nifty 50 as open interest slipped over 12%. 


Today, the Nifty 50 opened lower to touch a low of 15687.80 points, before strong gains in index-heavyweight Reliance Industries helped it recover to a high of 15861.60 points. However, selling pressures at higher levels pulled the index lower to end 0.3% down at 15799.10 points.


Meanwhile, the banking index remained under pressure throughout the session and constrained the upmove for the Nifty 50. The relative weakness in Nifty Bank is likely to continue unless it surpasses 33500 points, analysts said.


Today, the Nifty Bank index ended 1.1% lower at 33269.90 points.


Failing to decisively break out of that level can result in the Bank Nifty consolidate in a narrow range. Substantial concentration of open interest was also witnessed at the 33550 strike price call options of the index.


On the downside, a strong support zone for the sectoral index is seen at around 33000-33100-points as significant open interest was added in the put options of these strike prices.


Just like the Nifty 50, some unwinding of long positions was also witnessed in the June futures contract of Nifty Bank, with open interest falling over 2%. 


–Nifty 50 Jun closed at 15765.20, down 82.50 points; 33.90-point discount to spot index

–Nifty 50 Jul closed at 15767.70, down 79.65 points; 31.40-point discount to spot index

–Nifty 50 Aug closed at 15800.00, down 80.95 points; 0.90-point premium to spot index


The total turnover in the futures and options segment of the National Stock Exchange was 91.55 trln rupees compared with 69.54 trln rupees on Tuesday.


The turnover in index options was 87.68 trln rupees, higher than 65.62 trln rupees in the previous session. The total premium turnover of index and stock options was 340.39 bln rupees compared with 325.23 bln rupees on Tuesday.

The most-actively traded underlying stocks were Reliance Industries, HDFC Bank, Oil and Natural Gas Corp, ICICI Bank, Adani Enterprises, Infosys, Axis Bank, Tata Consultancy Services, Adani Ports and Special Economic Zone and Housing Development Finance Corp.




Edited by Vidhi Verma


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Source: Cogencis

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