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Wednesday, December 7, 2022

Equity Futures: Strong earnings outlook fuels bullish bets in Titan

Informist, Friday, Oct 7, 2022

 

By Vaibhavi

 

NEW DELHI – A swamp of bullish bets flooded the derivatives segment of Titan Co today, as investors aggressively added bets on hope of strong Jul-Sep earnings from the company.

 

The company’s overall sales grew 18% on year despite a higher base in the same quarter last year due to pent-up demand and spillover purchases from the disrupted Apr-Jun due to COVID-19. The jump in sales were fuelled by the jewellery segment, which saw an 18% increase in sales, and a 20% rise in sales of watches and wearables.

 

Positive views from a slew of brokerages and expectation of robust festive demand lifted the stock over 5% in the cash market.

 

A burst of volumes supported the upmove today, as over 5 mln shares exchanged hands on the National Stock Exchange, significantly higher than the six-month average of over 1 mln shares.

 

In the backdrop of an upbeat festive outlook, Titan Co’s shares are set to inch further higher towards 2,800 rupees in the coming session, said Osho Krishan, senior technical and derivative analyst at Angel One.

 

His view was further substantiated by call options data, wherein the 2,800-rupee strike price contract garnered maximum addition of open interest.

 

Traders also added long positions in the October futures contract of Titan Co, which saw its open interest shoot up nearly 12%.

 

Today, the scrip ended 5.8% higher at 2,743.80 rupees on the NSE.

 

As for the Nifty 50, caution ahead of the crucial US jobs data for September, due later today, kept trade muted. The subdued trade did not have much to offer to analysts.

 

Analysts continued to maintain their view that the Nifty 50 is likely to consolidate in a narrow range, until it decisively surpasses 17500 points.

 

On the downside, the index can be seen drawing support around 17000-17200 points, Krishan said. A support zone around that level is likely to restrict a steeper fall for Nifty 50, in case the US jobs data turns out to be unfavourable.

 

Put options of 17000- and 17200-strike price contracts witnessed the highest addition of open interest.

 

Today, the Nifty 50 opened slightly lower on weak global cues and remained subdued throughout the session. The 50-stock index ended 0.1% lower at 17314.65 points.

 

–Nifty 50 Oct closed at 17329.10, up 3.65 points; 14.45-point premium to spot index

–Nifty 50 Nov closed at 17378.00, up 6.75 points; 63.35-point premium to spot index

–Nifty 50 Dec closed at 17438.05, up 7.85 points; 123.40-point premium to spot index

 

Titan Co, Adani Enterprises, Ambuja Cements, Reliance Industries, HDFC Bank, State Bank of India, Infosys, ICICI Bank, Bajaj Finance, and Tata Chemicals were amongst the most actively traded underlying stocks today. 

 

Volumes for today’s derivatives trade were not updated on the NSE website at the time of writing this story.  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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