Informist, Friday, Sep 24, 2021
By Joe Milton
MUMBAI – The Nifty 50 index surpassed 17900 points for the first time ever, but derivative traders exercised caution and refrained from initiating long positions ahead of the weekend, and as concerns over potential default by China’s Evergrande Group resurfaced.
Open interest in September futures of Nifty 50 was up marginally to 12.3 mln, which suggests that the positions were largely unchanged. In the spot market, the 50-stock index gained 0.2% and closed at 17853.20, after touching a lifetime high of 17947.65 points earlier today.
The Nifty 50 index may consolidate as call writers were active at 18000 levels, and it may also act as a psychological resistance, said Ratnesh Goyal, senior technical and derivative analyst at Arihant Capital Markets.
On sectoral front, Nifty Bank further consolidated after the recent fresh break out, and analysts expect the index to move towards 38500 points as the overall structure remain positive.
Maximum addition of open interest in call options of the Nifty Bank index was at 38000 points. Today, the index gained 0.2% and closed at 37830.30 points.
Within bank stocks, shares of ICICI Bank and HDFC Bank managed to eke out gains when most other prominent banks ended lower. Open interest in the September futures of ICICI Bank and HDFC Bank gained 5.7% and 4.6% respectively, as trader added long positions on hope of more gains.
In the cash market, ICICI Bank and HDFC Bank ended with nearly 1% and 2%, respectively.
On stock-specific front, open interest in September futures of Bharti Airtel surged 17.5% to 63.2 mln as traders initiated long positions. Analysts expect the stock to face selling pressure at 750 rupees, and on decisively closing above this level the stock may test 780-800 rupees.
Shares of Bharti Airtel closed at 739.40 rupees, up 1.7%.
-–Nifty 50 Sep ended at 17848.80, up 15.70 points; 4.4-point discount to the spot market
-–Nifty 50 Oct ended at 17879.20, up 19.40 points; 26-point premium to the spot market
-–Nifty 50 Nov ended at 17901.00, up 13.35 points; 47.8-point premium to the spot market
Total turnover in the futures and options segment of the NSE was 39.9 trln rupees today compared to 124 trln rupees Thursday.
The turnover in the index options was 33.89 trln rupees compared to 119 trln rupees in the previous session. The total premium turnover of index and stock options was 266.6 bln rupees compared with 332 bln rupees on Thursday.
Bharti Airtel, Tata Steel, Infosys, HDFC Bank, Reliance Industries, DLF Ltd, Adani Enterprises, Zee Entertainment Enterprises, Tata Motors, Tata Chemicals, and ICICI Bank were the other most actively traded stocks today. End
Edited by Maheswaran Parameswaran
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Source: Cogencis
