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Equity Futures: Nifty 50 seen in thin range but bias positive

Informist, Friday, Jan 13, 2023

 

By Vaibhavi

 

NEW DELHI – The Nifty 50 finally made a recovery today, thanks to bargain buying after the weakness in recent sessions pushed the index into an oversold zone. However, positions taken by traders in the derivatives segment suggests that the index might not be out of the woods yet, even though the bias is now inclined towards the positive side, analysts said.

 

The recovery in the market triggered writing across put options, which dragged premiums across those contracts lower. The out-of-the-money 17900 strike price witnessed the maximum addition of open interest, followed by the 17800 strike price contract.

 

Some writing was also witnessed on the call side, while the maximum open interest was added across the 18200-18300 strike price contracts.

 

Taking that into account, Nirav Harish Chheda, technical and derivatives analyst at Nirmal Bang Institutional Equities, says the index will continue to trade in a narrow range of 17800-18300 points in the coming week with a positive bias. Forecasting an unclear trend for the Nifty 50, Chheda also suggested that investors remain on a wait-and-watch mode and not add fresh positions till the headline index manages to break out on either side of the range. 

 

Meanwhile, the rebound in the Nifty 50 also triggered the addition of some fresh long positions in its January futures contract as open interest rose over 5%. Nonetheless, analysts remain sceptical of the sustenance of this upmove as the Nifty 50 struggled to reclaim the 18000-mark despite the gains.

 

Today, benchmark indices managed to rebound from their early losses as the Nifty 50 ended 0.6% higher at 17956.60 points after slipping to a low of 17774.25 points.

 

–Nifty 50 Jan closed at 18022.00, up 103.35 points; 65.40-point premium to spot index

–Nifty 50 Feb closed at 18098.00, up 106.75 points; 141.40-point premium to spot index

–Nifty 50 Mar closed at 18171.10, up 104.55 points; 214.50-point premium to spot index

 

The total turnover in the futures and options segment of the NSE was 112.21 trln rupees, against 394.01 trln rupees on Thursday. Volumes were higher on Thursday due to the weekly options expiry.

 

The turnover in index options was 108.69 trln rupees compared with 391.42 trln rupees in the previous session. The total premium turnover of index and stock options was 509.3 bln rupees compared with 656.05 bln rupees on Thursday.

 

HCL Technologies, Tata Consultancy Services, Kotak Mahindra Bank, HDFC Bank, Axis Bank, ICICI Bank, Reliance Industries, Infosys, Adani Enterprises, and State Bank of India were among the most actively traded underlying stocks.  End

 

Edited by Avishek Dutta

 

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. 2023. All rights reserved.

Source: Cogencis

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