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Equity Futures: F&O hints at mkt in the green, but gains capped

Informist, Monday, Jun 5, 2023


By Neeshita Beura


MUMBAI – Buying at 18600 strike prices of call options of Nifty 50 and selling of put contracts at and below 18600 level indicated that traders expect the index to continue the upside movement but with limited gains. According to analysts, 18700 points will remain a key hurdle for the index and any dip towards 18500 points could lead to further buying on Tuesday.  


“We are seeing a tussle around 18600 strike price of call and put segments of Nifty 50,” said Ajit Mishra, vice-president of technical research at Religare Broking.


In the call segment of Nifty 50 options, the maximum open interest concentration was seen at 19500 strike price. The premium at this level fell by 0.30 rupees to 1.35 rupees and open interest rose by over 520,000 to 11.16 mln. However, analysts said it is unlikely that Nifty 50 will rise up to 19500 points any time soon.   


As per the options data, the immediate support for the Nifty 50 is seen at 18500 points and the major resistance is seen at 19500 points till the weekly expiry of options contracts on Thursday. 


Once the Nifty 50 closes above 18600 points, there is a chance for the index to reach a new high, Mishra said. Nifty 50 had touched its all-time high of 18887.60 points on Dec 1, 2022. However, since hitting its record high, a lot of indecisiveness has been observed in the Nifty 50 index as it is not seen inching towards a new high, analysts said. 


Today, Nifty 50 closed 0.3% higher at 18593.85 points and Sensex ended 0.4% higher at 62787.47 points.  For Tuesday, the support for Nifty 50 is seen at 18480-18550 points and resistance is seen at 18670-18800 points. 


The benchmark indices are expected to hover in a range-bound manner until the outcome of the Reserve Bank of India’s second monetary policy committee meeting for 2023-24, due to start on Tuesday. According to analysts, the market has already factored in a pause in the interest rate hike which is why the Nifty Bank index hit its lifetime high of 44498.60 points on May 30. 


The June futures contract of the Nifty 50 closed at a premium of 108.15 points to the spot index today. Open interest in the contract rose 1.9% to 9.25 mln, as per provisional data.


–Nifty 50 Jun closed at 18702.00, up 66.05 points; 108.15-point premium to spot index

–Nifty 50 Jul closed at 18783.00, up 64.25 points; 189.15-point premium to spot index

–Nifty 50 Aug closed at 18867.50, up 67.45 points; 273.65-point premium to spot index


Today, Reliance Industries, Axis Bank, Hindustan Aeronautics, HDFC Bank, Tata Motors, Tata Chemicals, ICICI Bank, Adani Enterprises, and Mahindra & Mahindra were among the most actively traded underlying stocks.  End


Edited by Deepshikha Bhardwaj



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Source: Cogencis

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