Informist, Friday, Dec 10, 2021
By Joe Milton
MUMBAI – The Nifty 50 managed to close above 17500 points for the second consecutive session, and sustainability of the index above this level may take the index closer to 17800 points.
Today, Nifty 50 closed flat at 17511.30 points, after moving between 17534.35 points and 17405.25 points intraday. Open interest in the December futures of the headline index was little changed at 11.4 mln.
In the call option segment of Nifty 50, maximum open interest was at 17500 points as traders largely refrained from unwinding their position. Hence, sustenance of the index above this level will be closely watched, which might open gates for 17800 points on upside, said ICICI Securities in its report.
Volatility is expected to subside going forward and that should result in Nifty 50 trading range shifting higher between 17200-17800 points, said Raj Deepak Singh, head of derivatives at ICICI Securities.
On the downside, Singh expects fresh weakness to kick in if Nifty 50 breaks 17200 points. In the put option segment of Nifty 50 expiring on Dec 16, substantial addition of open interest was at 17200 strike price.
On stock-specific front, shares of Godrej Properties have reverted from its highest put base at 2,000 rupees strike price, and the stock is currently placed at 2,100 rupees level.
The quantum of open interest in call options segment of Godrej Properties above 2,100 rupees strike price is much lower, hence if the stock closes above this level it should trigger fresh up move, said ICICI Securities in its report. The brokerage expects the stock to hit 2,240 rupees in December.
Among other stocks, bullish bets were placed in December futures of Asian Paints, Siemens, Cummins India, and Glenmark Pharmaceuticals as open interest in the contracts surged 10-20%, while the stocks gained 3-8% in the cash market.
On sectoral front, Nifty Bank index is expected to head towards 38000 points, where maximum open interest was seen in the call option segment of the index.
On the downside, Nifty Bank is expected to find support at 37000 points as the index has reverted from this level multiple times earlier. Today, Nifty Bank closed ended with 0.1% gains at 37105.65 points.
-–Nifty 50 Dec ended at 17546, down 15.40 points; 34.70-point premium to spot index
-–Nifty 50 Jan ended at 17599, down 25.15 points; 87.70-point premium to spot index
-–Nifty 50 Feb ended at 17637, down 16 points; 125.70-point premium to spot index
The total turnover in the futures and options segment of the NSE was 37.9 trln rupees today compared with 151.1 trln rupees on Thursday.
The turnover in index options was at 35.3 trln rupees against 148.7 trln rupees on the previous day. The total premium turnover of index and stock options was at 227.2 bln rupees compares with 309.4 bln rupees on Thursday.
Indian Energy Exchange, ITC Ltd, Adani Ports and Special Economic Zone, ICICI Bank, Adani Enterprises, Reliance Industries, Tata Motors, IndusInd Bank, State Bank of India, and HDFC Bank were some of the most actively traded underlying stocks. End
Edited by Maheswaran Parameswaran
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Source: Cogencis
