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Equity Futures:Caution to persist until Nifty 50 surpasses 18100 pts

Informist, Tuesday, Sep 20, 2022

 

By Vaibhavi

 

NEW DELHI – The strong gains notched by the Nifty 50 today failed to bring much cheer to analysts as they continue to be cautious until the headline index manages to decisively surpass 18100 points.

 

Today, the Nifty 50 opened higher owing to positive global cues and even briefly surpassed 17900 points. The headline index tested a high of 17919.30 points, but selling pressure at higher level pushed the Nifty 50 to end off its highs at 17816.25 points, up 1.1%.

 

The benchmark index failed to sustain the gains as it neared its stiff resistance zone of 18000-18100 points that led to scepticism among analysts over the sustainability of the upmove. 

 

The Nifty 50 failed to decisively break out of its strong resistance zone thrice last week.

 

The failure of the index to hold on to gains was due to caution among investors who await the commentary and outlook on future rate hikes by the US Federal Reserve Chair Jerome Powell.

 

The outcome of the Fed’s two-day monetary policy is due late on Wednesday, which will be the deciding factor whether the Nifty 50 can move past its resistance zone. 

 

The net short positions of foreign institutional investors in the index increased slightly that also exhibits caution on their part, analysts said.

 

Volatility is likely to increase ahead of the Fed outcome, with the Nifty 50 facing resistance around

18000-18100 points, said Ruchit Jain, lead research, 5pasia.com.

 

A support can be seen across 17400-17500 points, and only a decisive movement on either side will trigger a strong directional move for the Nifty 50, Jain said.

 

Among call options, the 18000 strike price contracts held the highest open interest. The 18100 strike price call options also witnessed sizeable open interest addition.

 

–Nifty 50 Sep closed at 17803.70, up 175.70 points; 12.55-point discount to spot index

–Nifty 50 Oct closed at 17857.00, up 173.90 points; 40.75-point premium to spot index

–Nifty 50 Nov closed at 17925.25, up 177.80 points; 109.00-point premium to spot index

 

The total turnover in the futures and options segment of the National Stock Exchange was 111.17 trln rupees, higher than 93.44 trln rupees on Monday. 

 

The turnover in index options was 106.75 trln rupees compared with 89.22 trln rupees on Monday. The total premium turnover of the index and stock options was 472.92 bln rupees compared with 526.05 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, IndusInd Bank, and Reliance Industries, were among the most-actively traded underlying stocks today.  End

 

Edited by Vandana Hingorani

 

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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