Informist, Friday, Nov 12, 2021
By Vivek Kumar
MUMBAI – With earnings season nearing an end, a slew of companies detailed their Jul-Sep earnings today and that steered stock-specific movement in the derivatives segment.
Motherson Sumi Systems, Hindalco Industries, Tech Mahindra, InterGlobe Aviation and Godrej Consumer Products were some stocks in focus today.
Hindalco Industries reported strong Jul-Sep earnings today. The stock closed over 3% higher at 468.55 rupees as the company reported better-than-expected numbers.
The open interest in the November futures of the stock jumped nearly 10% to 28.7 mln, indicating aggressive addition of long positions.
Further, the premiums of out-of-the-money call options between 470 rupees and 520 rupees rose 10-30% today, while those of 430 rupees and 460 rupees put options slumped 70% and 55%, respectively.
Information technology companies were also among the list of top gainers today as the positive growth outlook from Tech Mahindra gave a sentimental boost to the sector.
Shares of Tech Mahindra rose more than 4% to close at 1,585 rupees in the cash market, while positioning in the stock’s derivatives segment indicated some caution.
The premium of 1,620-rupee call option of the stock jumped 50%, while those of deep-out-of-the-money call options fell. The November futures contract of the stock closed at par with the spot price.
Given the stock has closed below 1,600 rupees, it is likely to remain range-bound for some time, said Shubham Sontakke, an independent technical analyst. However, if it moves above 1,600 rupees going ahead, it could lead to short-covering and push the stock towards a new all-time high, he said.
Other information technology companies–HCL Technologies, Tata Consultancy Services, Infosys and Wipro–also rose 1-3%. While the overall trend in the sector looks positive with several stocks coming out of their consolidation this week, the gains may be limited in the near term amid lack of triggers, analysts said.
Meanwhile, with gains across most sectors, the benchmark Nifty 50 ended above 18100 points for the first time this month. This also propelled strong bets in the index’s derivatives segment.
The premium of 18500-point call option jumped nearly 50% and also had the maximum open interest. On the other hand, 18000-point put option premium slumped nearly 70%, indicating that the level may act as immediate support going ahead.
The open interest in the November futures of the index fell nearly 3% to 10.5 mln. The index closed 1.3% higher at 18102.75 points.
The barrier of 18000-point call option is broken and short-covering will push the Nifty 50 further upwards in the near-term, Sontakke said.
-–Nifty 50 Nov ended at 18141.25, up 244.40 points; 38.50-point premium to spot index
-–Nifty 50 Dec ended at 18197.00, up 235.05 points; 94.25-point premium to spot index
-–Nifty 50 Jan ended at 18259.00, up 229.20 points; 156.25-point premium to spot index
Total turnover in the futures and options segment of the NSE was 39.2 trln rupees today, compared to 123.1 trln rupees on Thursday.
The turnover in index options was at 35.8 trln rupees compared with 120.2 trln rupees in the previous session. The total premium turnover of index and stock options today was 214.9 bln rupees, compared to 278.6 bln rupees on Thursday.
Tata Steel, Reliance Industries, Adani Enterprises, Tata Motors, ICICI Bank, Bharti Airtel, Bharat Forge, State Bank of India, Infosys, HDFC Bank, Motherson Sumi Systems, Tata Power Co, Vedanta, Hindalco Industries and Tata Consultancy Services were some of the most actively traded underlying today. End
Edited by Shirsha Thakur
Cogencis news is now Informist. 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.
Informist Media Tel +91 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2021. All rights reserved.
Source: Cogencis
