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Equity Futures: Earnings cheer triggers bullish bets in IndusInd Bank

Informist, Thursday, Jul 21, 2022


By Ankika Biswas


MUMBAI – Bullish bets flooded the derivatives segment of IndusInd Bank today, as the stock surged over 9% to an over one-month high of 962 rupees. The lender’s bottomline for Apr-Jun surpassed the Street’s view, supported by lower provisions and higher net interest income.


The 17% rise in open interest in the July futures contract reflected strong build-up of long positions.


Although the stock has surged nearly 17% in four days, analysts see potential for further gains, owing to a breakout move backed by strong trade volumes. They see it testing 1,000 rupees, as per the strong addition of open interest at that strike price call option. 


Premiums across other out-of-the-money call options of the 960- to 980-rupee strike prices also surged over sixfold.


However, in case of any profit booking, the stock may test 900-920 rupees, with analysts advising to accumulate it on dips. Today, it closed 8% higher at 948.10 rupees, emerging at the top of the list of gainers on the Nifty 50.


Traders also added strong bullish bets in the futures segment of the Nifty Bank index today, going by the near 10% rise in open interest in the July contract. The index has risen nearly 5% in five sessions, and even tested a one-month high of 36331.70 points today. Analysts say the index may move towards 36500-36900 points on managing to sustain the upward trend. 


Today, it closed 0.6% higher at 36201 points.


In fact, the bullish trend was also visible in the derivatives segment of the headline Nifty 50, which rose for the fourth session today and closed above the 16600-mark for the first time since early June.


Open interest in the July futures contract surged over 10% today. Traders were largely active across 16600-16700 strike price call options.


As the trend remains positive, today’s close above 16600 points is seen triggering more buying momentum, which may push the headline index towards 16750 levels, said an analyst at Axis Securities. Today, it closed 0.5% higher at 16605.25 points.


–Nifty 50 Jul closed at 16618.00, up 98.40 points; 12.75-point premium to spot index

–Nifty 50 Aug closed at 16628.95, up 98.65 points; 23.70-point premium to spot index

–Nifty 50 Sep closed at 16664.90, up 97.10 points; 59.65-point premium to spot index


The total turnover in the futures and options segment of the National Stock Exchange was about 234.93 trln rupees, much higher than 117.04 trln rupees on Wednesday.


The turnover in index options was 231.09 trln rupees, as against 112.94 trln rupees on Wednesday. The total premium turnover of index and stock options was at 430.59 bln rupees compared to 399.31 bln rupees on Wednesday.  


IndusInd Bank, Reliance Industries, Infosys, Wipro, HDFC Bank, ICICI Bank, Tata Consultancy Services, Bajaj Finance, ITC, and Axis Bank were the most actively traded underlying stocks.  End


Edited by Avishek Dutta


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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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