Informist, Thursday, Nov 9, 2023
By Akshata Gorde
MUMBAI – The options chain of Mahindra and Mahindra Ltd shows that the bullish momentum seen in the stock today may continue on Friday, ahead of its earnings for the September quarter.
The automobile maker’s stock rose as much as 4.8% today and hit an intraday high of 1,558.70 rupees, before closing 4.4% higher at 1,552.05 rupees. The Mumbai-based company is expected to report strong growth across key earnings parameters on account of a healthy uptick in volumes, price hikes, and moderation in raw material costs.
Investors bought out-of-the-money call options of 1570 and 1600 strikes, expecting the stock to extend its gains to these levels. On the put side, the 1500-1540 strike prices saw selling, acting as support levels for the stock.
The positive momentum in Mahindra and Mahindra’s stock also spread to its peers in the automobile sector, which closed 0.8% higher at 16355.30 points today. Shares of Hero MotoCorp Ltd, Tata Motors Ltd, and Maruti Suzuki India Ltd closed 0.8-1.3% higher.
The automobile index, along with the realty index, were outliers in today’s bearish market. The benchmark Nifty 50 index closed 0.3% lower at 19395.30 points, succumbing to selling pressure towards the end after trading in a range throughout. The 19300 level is good support for the Nifty 50, while resistance is seen at 19500 points, some technical analysts said.
Even the option chain of the 50-stock index expired on an indecisive note today, said analysts. Investors have not taken any fresh positions for the contracts expiring on Nov 16, and the outlook continues to be range bound to bearish, said Anshul Jain, senior technical analyst at Lakshmishree Investment and Securities Ltd.
–Nifty 50 Nov closed at 19476, down 14.85 points; 80.7-point premium to spot index
–Nifty 50 Dec closed at 19583.55, down 13 points; 188.25-point premium to spot index
–Nifty 50 Jan closed at 19685.55, down 14.50 points; 290.25-point premium to spot index
Power Finance Corp, HDFC Bank, Reliance Industries, Lupin, Mahindra and Mahindra, Tata Motors, Bajaj Finance, Multi Commodity Exchange of India, Apollo Hospitals, REC, and Coal India were among the most actively traded underlying stocks today. End
Edited by Maheswaran Parameswaran
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