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Equity Futures: Mixed F&O data signals muted Jan series for Nifty 50

Informist, Thursday, Dec 29, 2022


By Vivek Kumar


MUMBAI – The Nifty 50 is set for a subdued January series as futures and options data indicated a mixed trend. Surpassing 18200 points and sustaining gains above this level will be very crucial on Friday, according to analysts.


The benchmark index ended 0.4% higher at 18191 points today on the back of short-covering by traders amid expiry of December derivatives contracts. The quarterly rejig of stocks and their weightage in Nifty 50 and sectoral indices, which will come into effect on Friday, also led to some inflows in the last hour of trade, dealers said.


Traders, who were betting on Nifty 50 closing the day around 18000 points level, had to close their positions following the upmove. As a result, the open interest in 18000 points put option of the Nifty 50 fell sharply.


In the options contracts expiring on Jan 5, the maximum build-up of open interest was seen at 18200 points on the call side and 18000 points on the put side. This indicated that traders do not see significant upside yet for the benchmark index and that the support is at 18000 points.


“Market may attempt to extend the rebound on the last trading day of the calendar year, however, mixed global cues could cap the upside….We thus reiterate our view to continue with stock-specific trading approach and maintain positions on both sides until we get clarity over the directional move in the index,” said Ajit Mishra, vice president – technical research at Religare Broking.


In the December derivatives series, the Nifty 50 fell 1.6% after having risen over 4% in the November series. The index moved in the range of 17774.25 points and 18887.60 points during the December series, with latter being its lifetime high level.


The provisional data showed that open interest in the January series stood at 10.6 mln. Market participants will closely watch the rollover data later today, which will shed some light over the near-term market trend. 


“I don’t see anything which can be termed negative in the market right now,” said Raj Deepak Singh, head of derivatives at ICICI Securities. However, he also added that there is no longer over bullishness in the market.


–Nifty 50 Jan closed at 18299.00, up 60.35 points; 108.00-point premium to spot index

–Nifty 50 Feb closed at 18372.00, up 57.20 points; 181.00-point premium to spot index


The total turnover in the futures and options segment of the National Stock Exchange was 356.73 trln rupees, against 159.18 trln rupees on Wednesday.


The turnover in index options was 352.83 trln rupees compared with 155.16 trln rupees in the previous session. The total premium turnover of index and stock options was 578.20 bln rupees compared with 476.10 bln rupees on Wednesday.


Reliance Industries, HDFC Bank, Housing Development Finance Corp, ICICI Bank, Adani Enterprises, Bajaj Finance, State Bank of India, Kotak Mahindra Bank, Axis Bank, Tata Motors, Adani Ports and Special Economic Zone, Bank of Baroda, ITC and Tata Consultancy Services were among the most actively traded underlying stocks.  End


Edited by Maheswaran Parameswaran



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Source: Cogencis

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