Informist, Tuesday, Jan 31, 2023
By Vivek Kumar
MUMBAI – Benchmark Nifty 50 is set for a volatile trading session on Wednesday when the government is scheduled to present the Union Budget for 2023-24 (Apr-Mar), derivatives market data showed. The maximum change in open interest on the call side of the Nifty 50 was at 18500 points, while on the put side it was at the strike price of 17600 points.
Surpassing and sustaining above 18000 points is crucial for any change in short-term trend, according to analysts. The Nifty 50 closed 0.1% higher at 17662.15 points today. The open interest in February futures contract of the index rose 4.3% to 10.9 mln, as per provisional data.
Analysts believe some short positions are likely to have been covered today, similar to the trend seen on Monday, ahead of the Budget. “Unless and until something good comes in the Budget, it would be challenging to move easily on the higher side. We need some good price action, and only then the trend can change,” a market participant said.
In the weekly options contracts, premiums of some call options rose today after they were hammered in the past few sessions when market fell sharply. The premium on the 18000 points call option rose over 17% today to 53 rupees, after tumbling nearly 83% in the past four sessions. The contract also held maximum open interest on the call side. A similar trend was seen in other call options with strike prices in the range of 17600-18200 points.
On the put side, maximum build up of open interest was seen at 17000 points and its premium fell nearly 37%. The premiums on deeper-out-of-the-money put options also fell today.
Apart from Wednesday’s Union Budget, several other factors like the US Federal Reserve meeting, US employment data, domestic automobile sales data, earnings and Adani-Hindenburg controversy will keep market volatile.
“From Indian market perspective, instead of having overall view on the market, I’ll take view on sectors which are looking good, including automobile, fast-moving consumer goods and metals,” the market participant quoted above added.
–Nifty 50 Feb closed at 17795.00, up 53.25 points; 132.85-point premium to spot index
–Nifty 50 Mar closed at 17895.00, up 63.85 points; 232.85-point premium to spot index
–Nifty 50 Apr closed at 17966.80, up 66.35 points; 304.65-point premium to spot index
Total turnover in the futures and options segment of the National Stock Exchange was 178.56 trln rupees, against 135.19 trln rupees on Monday.
The turnover in index options was 175.38 trln rupees compared with 131.50 trln rupees in the previous session. The total premium turnover of the index and stock options was 673.16 bln rupees compared with 794.83 bln rupees on Monday.
Adani Enterprises, State Bank of India, ICICI Bank, Adani Ports and Special Economic Zone, HDFC Bank, Reliance Industries, Bank of Baroda, Larsen & Toubro, Tata Motors, Bajaj Finance, Infosys, Canara Bank, and Punjab National Bank were among the most actively traded underlying stocks. End
Edited by Vidhi Verma
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. 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 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
