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Equity Futures: Fundraise plans trigger bullish bets in Ambuja Cements

Informist, Monday, Sep 19, 2022


By Vaibhavi


NEW DELHI – After its acquisition by the Adani Group, plans to raise 200 bln rupees by the new promoters of Ambuja Cements led to strong gains in the stock today. Analysts are hopeful that the stock rises further in the coming sessions.


Once it raises fresh capital, Ambuja Cements would be poised to become the most cash-rich company in the cement sector in the country. 


Brokerage house JPMorgan believes the emergence of a cash-rich Ambuja Cements along with its aggressive new owners will be a negative for its peers. Brokerage firm Citigroup is of the view that the raising of fresh capital will help the company achieve its stated target of doubling capacity within the next five years.


Buoyed by the positive news, the stock surged over 10% and hit a lifetime high of 572.95 rupees.


Given the bullish sentiment for the stock, Ambuja Cements could inch towards 625-630 rupee levels in the near term, said Ratnesh Goyal, senior technical and derivatives analyst, Arihant Capital Markets.


There was substantial open interest in the stock’s call options at higher strike prices of 565-600 rupees.


Since shares of the company saw strong gains in today’s session, Goyal believes investors should wait and buy the stock at around 530 rupees.


Put options of the 530-rupee strike price witnessed the highest open interest addition followed by 550- and 540-rupee contracts.


Moreover, open interest in the September futures of the stock fell over 5% which was reflective of the covering of short positions by traders.


Today, shares of Ambuja Cement ended over 9% higher at 564.90 rupees.


As for the headline Nifty 50, caution among investors in the run-up to the US Federal Reserve’s monetary policy that will begin on Tuesday is likely to restrict strong moves on either sides.


The benchmark index is poised to face a strong roadblock around 17800 points, said Viraj Vyas, technical and derivatives analyst at Ashika Institutional Broking. On the downside, however, immediate support at 17500 points will limit the losses for the index, Vyas said.


Put options of the 17500 strike price held the highest open interest and also witnessed the maximum addition of fresh positions.


Today, the Nifty 50 recovered some losses from its three-day fall and ended 0.5% higher at 17622.25 points.


–Nifty 50 Sep closed at 17640.00, up 73.85 points; 17.75-point premium to spot index

–Nifty 50 Oct closed at 17695.00, up 71.70 points; 72.75-point premium to spot index

–Nifty 50 Nov closed at 17758.00, up 60.60 points; 135.75-point premium to spot index


The total turnover in the futures and options segment of the National Stock Exchange was 93.44 trln rupees, higher than 92.90 trln rupees on Friday. 


The turnover in index options was 89.22 trln rupees compared with 87.76 trln rupees on Friday. The total premium turnover of the index and stock options was 526.05 bln rupees compared with 590.32 bln rupees in the previous session.


Bajaj Finance, Infosys, Adani Enterprises, Maruti Suzuki, Ambuja Cements, ICICI Bank, Adani Ports and Special Economic Zone, HDFC Bank, ACC, and Reliance Industries, were among the most-actively traded underlying stocks today.  End


Edited by Aditya Sakorkar


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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