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Tuesday, January 31, 2023

Equity Futures: Data shows some steam left in Tata Motor’s upmove

Informist, Tuesday, Jan 10, 2023


By Vaibhavi


NEW DELHI – Shares of Tata Motors rose sharply in the cash market today as the wholesale volumes for the company’s luxury arm Jaguar Land Rover witnessed strong year-on-year growth in the December quarter. Traders also added some bullish bets in the options segment of the stock, suggesting that some more gains are likely for shares of Tata Motors in the coming sessions.


As wholesale volumes for the company’s arm Jaguar Land Rover rose 15% on year in Oct-Dec due to a gradual improvement in chip supplies, it managed to fuel over 7% gains in the stock in the cash market. 


The strong gains in the cash market also prompted traders to exit their positions across in-the-money strike price call options of 360-410 rupees, which reflects little hopes of a trend reversal in the stock.


Consequently, fresh positions were added across out-of-the-money strike price call options, which lifted premiums across these contracts. The call options of 430-rupee strike price garnered the maximum addition of open interest as traders bet on hopes of the stock testing this level in the near future.


Even though the stock managed to eke out strong gains today, the upward momentum is likely to be refuelled only after upside levels around 430-440-rupees are surpassed, said Ratnesh Goyal, senior technical and derivatives analyst, Arihant Capital Markets.


Until those levels are crossed, profit booking cannot be ruled out, Goyal said. In such a scenario, he also believes that the downside for the stock will be restricted by a strong support that will come in near the 400-380-rupee zone.


His view was also substantiated by put options data wherein the 400-rupee strike price contract not only held the highest open interest but also garnered the maximum addition of fresh positions. 


Today, shares of Tata Motors ended over 6% higher at 412.90 rupees.


As for the Nifty 50, analysts expect the rangebound trend to continue until the index manages to break free out of its range of 17800-18200 points on either side. Only a decisive move on either side can result in a strong directional move for the Nifty 50, analysts said.


The sentiment in the market will also continue to be “sell-on-rise” as long as the index hovers below its psychologically important level of 18000 points.


Today, the headline Nifty 50 ended 1% lower at 17914.15 points.


–Nifty 50 Jan closed at 17988.45, down 184.75 points; 74.30-point premium to spot index

–Nifty 50 Feb closed at 18055.90, down 184.15 points; 141.75-point premium to spot index

–Nifty 50 Mar closed at 18132.90, down 170.00 points; 218.75-point premium to spot index


The total turnover in the futures and options segment of the NSE was 226.39 trln rupees, against 149.75 trln rupees on Monday. 


The turnover in index options was 223.25 trln rupees compared with 146.83 trln rupees in the previous session. The total premium turnover of index and stock options was 599.73 bln rupees compared with 525.64 bln rupees on Monday.


Tata Motors, Bajaj Finance, HDFC Bank, Axis Bank, ICICI Bank, Reliance Industries, Infosys, Adani Enterprises, Tata Consultancy Services and State Bank of India were among the most actively traded underlying stocks.  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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