Informist, Tuesday, May 31, 2022
By Ankika Biswas
MUMBAI – Bullish bets were seen in the futures segment of Oil and Natural Gas Corp today, as the stock surged 5% and was the top gainer on the Nifty 50. Better earnings prospects, tracking a surge in global crude oil prices, led to strong buying in the stock.
A surge of over 10% in open interest in the June futures contract suggested a build-up of long positions.
Traders were active across the 152.50-160 rupees strike price call options, expecting the stock to test these levels. The derivatives data prompted analysts to believe it may test 157-160 rupees in the short term. Today, the scrip closed 5% higher at 151.25 rupees.
As the trend is positive, investors should use any dips as a buying opportunity, while those already holding the stock could continue to do so, said an analyst at Axis Securities.
Meanwhile, bearish bets were seen in the futures segment of — Sun Pharmaceutical Industries, the biggest laggard on the Nifty 50. The stock fell over 4% during the day, after the drugmaker unexpectedly posted a consolidated net loss for Jan-Mar.
Open interest of the June futures contract tumbled over 11%.
If the stock manages to remain firm above its key support of 840 rupees, some rebound is likely, said the analyst quoted earlier. However, failing to do so may see further build-up of short positions.
Foreseeing some chances of a recovery, he advised traders to use the current correction as an opportunity to buy the stock. Today, it closed 3% lower at 860.60 rupees.
As for the headline index, call option writers turned active at higher strike prices as the Nifty 50 bid adieu to its three-day gaining streak and closed with losses.
Traders were active across 16700-17000 points, suggesting that the index may face strong resistance at the 16700-mark. Meanwhile, strong addition of open interest at the 16450 strike price put option suggests the formation of a support base at that level.
In case the Nifty 50 breaches the support zone, it may extend its fall towards 16100 points, the analyst added.
Today, the index closed 0.5% lower at 16584.55 points, whereas open interest in the June futures contract slipped over 5%.
–Nifty 50 Jun ended at 16570.05, down 73.40 points; 14.50-point discount to spot index
–Nifty 50 Jul ended at 16590.00, down 69.30 points; 5.45-point premium to spot index
–Nifty 50 Aug ended at 16620.25, down 70.90 points; 35.70-point premium to spot index
The total turnover in the futures and options segment of the National Stock Exchange was 82.50 trln rupees, higher than 58.37 trln rupees on Monday.
The turnover in index options was 79.68 trln rupees, compared with 55.89 trln rupees in the previous session. The total premium turnover of index and stock options was 399.77 bln rupees, higher than 339.80 bln rupees on Monday.
The most actively traded underlying stocks were Reliance Industries, Bharti Airtel, Sun Pharmaceutical Industries, Tata Steel, ICICI Bank, HDFC Bank, Maruti Suzuki India, Kotak Mahindra Bank, Vedanta and Infosys. End
Edited by Avishek Dutta
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Source: Cogencis
