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Equity Futures: Nifty 50 may surpass 18100 if global cues remain firm

Informist, Tuesday, Sep 13, 2022

 

By Vaibhavi

 

NEW DELHI – The Nifty 50 surpassed the psychologically crucial mark of 18000 points today led by upbeat global cues and broad-based gains across sectors. On the back of these gains, analysts remained hopeful of the headline index topping the key resistance level of 18100 points in the coming sessions.

 

An indication of inflation having peaked in the US can act as a major trigger for the Nifty 50 to surpass this crucial resistance level. The US retail inflation data, due after market hours today, will set the trend for global markets on Wednesday.

 

Going by market expectations, US retail inflation is likely to have cooled to 8.1% in August from 8.5% in July. If inflation data is better than expected or along expected lines, it is likely to trigger gains for global markets on hope of a slowdown in pace and quantum of rate hikes among investors. 

 

Among call options expiring on Sep 15, the 18100 strike price held the second-highest open interest at nearly 5 mln.

 

Taking cues from this, the Nifty 50 is seen facing a stiff resistance around 18100 points and a decisive surpassing of that level can push the index towards 18350 points, said Ajit Mishra, vice-president – research, at Religare Broking.

 

The call options across 18200-18400 strike prices also held sizeable open interest of 2-5 mln.

 

As the Nifty 50 inched above 18000 points, put option traders unwound their positions at lower strike prices, indicating that they expect much of the Nifty 50’s gains to sustain.

 

Fresh positions were then added in put options of 17950-18100 strike prices.

 

Today, the Nifty 50 opened higher tracking positive global cues and tested a high of 18088.30 points. The index eventually ended 0.8% higher at 18070.05 points, its highest level since Jan 18.

 

Similar to the Nifty 50, the Nifty Bank index also inched closer to its crucial resistance of 41000 points today. The index ended 0.7% higher at 40873.10 points.

 

The positive momentum for Nifty Bank is also expected to continue, with the sectoral index likely to surpass its resistance in the coming sessions, Mishra said.

 

Any downside for the banking index is also likely to remain restricted at around 39800-40000 points that will act as a strong support for the sectoral index, analysts said.

 

The 41000-strike price call options held the highest open interest and also witnessed the maximum addition of fresh positions.

 

–Nifty 50 Sep closed at 18107.50, up 143.15 points; 37.45-point premium to spot index

–Nifty 50 Oct closed at 18160.00, up 143.80 points; 89.95-point premium to spot index

–Nifty 50 Nov closed at 18222.00, up 145.90 points; 151.95-point premium to spot index

 

Total turnover in the futures and options segment of the National Stock Exchange was 80.07 trln rupees, up from 66.03 trln rupees on Monday.

 

Turnover in index options was 76.59 trln rupees compared with 62.84 trln rupees Monday. The total premium turnover of the index and stock options was 336.83 bln rupees compared with 342.45 bln rupees in the previous session.

 

Bajaj Finserv, Bajaj Finance, Adani Ports and Special Economic Zone, HDFC Bank, ICICI Bank, Reliance Industries, Adani Enterprises, Bharti Airtel, Tata Chemicals and ACC were among the  most-actively traded underlying stocks today.  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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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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