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Equity Futures: Short bets in Divi’s Lab on report Jul-Sep sales down

Informist, Tuesday, Oct 11, 2022


By Joe Milton


MUMBAI – Traders added short positions in Divi’s Laboratories after media reports said the overall revenue of the company may have slumped over 20% sequentially in the September quarter citing IIFL Institutional Equities. 


The sharp fall in revenue comes on the back of weak sales in both its base business and molnupiravir sales, as reported in the media. Following this, the stock fell 5% and closed at 3,502.20 rupees.


Open interest in the October futures of Divi’s Laboratories surged 17.8%, while the contract fell 5.2% to 3,498.25 rupees, which indicates the build-up of short positions. 


In the put options segment of the stock, the highest open interest was at 3,500-rupee strike price, followed by 3,400-rupee strike price. 


The stock has been in a declining trend and the next round of sell off would start if it falls below its crucial support of 3,400 rupees level, said Ratnesh Goyal, senior technical and derivative analyst at Arihant Capital Markets. 


Overall, the Nifty 50 fell sharply in the final hour of trade and closed 1.5% lower at 16983.55 points, which is near its 200-day simple moving average. 


Open interest in the October futures of the index surged 8%, while the contract fell 1.6%, suggesting the addition of short positions. 


In the put options segment of Nifty 50 expiring on Thursday, sellers were seen unwinding their positions at 17000 strike price. On the other hand, put writers added position across 1600-16800 strike prices. 


Considering the options data, analysts believe another 200-300 point decline in Nifty 50 is likely and the index might find support at around 16500 points. 


–Nifty 50 Oct closed at 16960.65, down 266.80 points; 22.90-point discount to spot index

–Nifty 50 Nov closed at 17005.00, down 266.35 points; 21.45-point premium to spot index

–Nifty 50 Dec closed at 17065.00, down 263.25 points; 81.45-point premium to spot index


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


Tata Motors, Tata Consultancy Services, Infosys, ICICI Bank, Reliance Industries, HDFC Bank, Axis Bank, Adani Enterprises, Wipro, Ambuja Cements, and IndusInd Bank were amongst the most actively traded underlying stocks today. End


Edited by Maheswaran Parameswaran


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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