Informist, Thursday, Oct 7, 2021
By Joe Milton
MUMBAI – Bullish bets were placed in the derivative segment of Oberoi Realty, Godrej Properties, and DLF Ltd, triggered by strong pre-sales numbers reported by their peers.
Real estate developers Sobha Ltd, Macrotech Developers and Arihant Superstructures reported strong double-digit growth in sales in Jul-Sep, and analysts expect festivals such as Dussehra and Diwali to drive sales in the December quarter as well.
The robust outlook prompted traders to initiate long positions in October futures of Oberoi Realty, Godrej Properties, and DLF Ltd as the open interest in these contracts were up 3-14%.
Fresh long positions were formed in these stocks in addition to the already existing positions, and the sector as a whole is expected to continue its outperformance, said Ruchit Jain, senior technical and derivative analyst at Angel One. Nifty Realty index was among the top performers. It gained over 30% in September.
The analyst prefers Godrej Properties, and he expects the stock to continue its upward momentum towards 2,500 rupees in the near term. Today, the stock gained 8.3% and closed at 2,476.80 rupees, after touching its all-time high of 2,498 rupees.
In the options segment of Godrej Properties, the highest build-up of open interest was seen at 2,500 rupees strike price today.
Apart from this, strong buying in information technology and automobile stocks helped the Nifty 50 index recoup most of its Wednesday’s losses. The 50-stock index gained 0.8% and closed at 17790.35 points, after touching an intraday high of 17857.55 points.
Traders who added short positions on Wednesday on expectation of further fall in Nifty 50 covered their positions today as the headline index witnessed a gap-up opening, said Jain.
Following this, open interest in the October futures of the index fell nearly 3% to 12.5 mln due to covering of short positions.
Though Nifty 50 has been volatile this week, analysts do not expect any reversal of trend as long as the index sustains above 17500-17600 points. On the upside, the index is expected to face resistance at 17900-17950 points.
Besides Nifty 50, traders covered their short positions in the October futures of Nifty Bank as the open interest in the contract was down 6.6% at 1.8 mln.
The Nifty Bank index is expected to face resistance at 38000 points, and analysts expect the index to resume its uptrend upon decisively surpassing 38200 points. The index gained 0.6% and closed at 37753.20 points.
-–Nifty 50 Oct ended at 17820, up 192.80 points; 29.65-point premium to spot index
-–Nifty 50 Nov ended at 17852, up 189.05 points; 61.65-point premium to spot index
-–Nifty 50 Dec ended at 17892, up 192.95 points; 101.65-point premium to spot index
Total turnover in the futures and options segment of NSE was 112.6 trln rupees as weekly options expired today compared to 80 trln rupees on Wednesday.
The turnover in index options was about 108.9 trln rupees compared with 76.4 trln rupees in the previous session. The total premium turnover of index and stock options was 265 bln rupees compared with 313.74 bln rupees Wednesday.
Tata Motors, Indian Railway Catering and Tourism Corp, Titan Co, Maruti Suzuki India, Tata Consultancy Services, Piramal Enterprises, DLF Ltd, Infosys, Tata Power, Tata Steel, and Godrej Properties were the other most actively traded stocks today. End
Edited by Patricia Hou
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Source: Cogencis
