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Equity Futures: Bets suggest Escorts Kubota may gain to 1,830 rupees

Informist, Tuesday, Jul 19, 2022


By Ankika Biswas


MUMBAI – Shares of Escorts Kubota, which have gained nearly 14% in the last five sessions, can potentially gain further, as indicated by the bullish derivatives data and an overall positive market trend, analysts said.


The stock tested a three-month high of 1,793.95 rupees today on strong trade volumes, and even broke above its key 200-day simple moving average of 1,700 rupees.


In the derivatives counter, the over 22% rise in open interest of the July futures contract reflected a build-up of long positions. Further, the maximum open interest addition at the 1,800-rupee strike price call option indicated that traders expect the stock to test this level going ahead.


These bullish indicators prompted analysts to believe that the stock may gain further to 1,830 rupees, wherein some profit booking can trickle in. Consequently, they advised using any dips towards 1,720 rupees as a buying opportunity.


Today, shares of Escorts Kubota closed over 5% higher at 1,755.35 rupees on the National Stock Exchange. 


Bullish bets were also seen in the derivatives segment of Polycab India, which gained nearly 5% in the spot market, following a strong set of Apr-Jun earnings. The company reported its highest-ever revenue and a strong operating margin aided by price hikes and demand revival. 


Analysts expect the stock to retain the upward trend and test 2,330 rupees in the near term. The over 12% rise in open interest of the July futures contract suggested the build-up of long positions.


Today, it closed at 2,250.80 rupees, backed by significantly strong volumes.


As for the headline Nifty 50, analysts noted that the index has the potential to test 16500 points if it manages to retain the uptrend. It closed higher for the third straight day today, topping the key 16300-mark, and fared better than most of its Asian peers.


The over 3% rise in open interest of the July futures contract hinted at some build-up of long positions.


A strong addition of open interest at the 16500-strike price call option suggested the formation of a hurdle zone for the index at that level. Among other out-of-the-money call options, traders were active at the 16400 and 16600 strike prices.


Today, the 50-stock index closed 0.5% higher at a fresh one-month closing high of 16340.55 points.


–Nifty 50 Jul closed at 16338.00, up 37.75 points; 2.55-point discount to spot index

–Nifty 50 Aug closed at 16353.70, up 40.85 points; 13.15-point premium to spot index

–Nifty 50 Sep closed at 16395.05, up 41.55 points; 54.50-point premium to spot index


Total turnover in the futures and options segment of the National Stock Exchange was about 105.73 trln rupees, much higher than 68.89 trln rupees on Monday.


The turnover in index options was 102.38 trln rupees as against 65.49 trln rupees on Monday. The total premium turnover of index and stock options was at 427.61 bln rupees compared to 323.32 bln rupees on Monday.  


Reliance Industries, ICICI Bank, Axis Bank, HDFC Bank, State Bank of India, Housing Development Finance Corp, Infosys, Polycab India, Bajaj Finance, and Kotak Mahindra Bank were the most actively traded underlying stocks.  End


Edited by Tanima Banerjee


For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.


Cogencis news is now Informist news. 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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