Informist, Thursday, Apr 28, 2022
By Abhishek Saini
MUMBAI – After a volatile April series, bets in the derivatives segment of the Nifty 50 indicate that the index is likely to begin the May series on a positive note.
In the options of the Nifty 50 expiring on May 5, open interest was added in the 17300-, 17400- and 17500-point strike prices and their premiums rose 40-50%, indicating further gains for the index.
Among put options, out-of-the-money strike prices at the 17100-, 17000-, and 16900-point strike prices saw open interest additions along with a fall in premiums. This hinted at selling in these contracts.
In the near term, the Nifty 50 is likely to move towards 17500 points, said Rupak De, derivatives analyst, LKP Securities. On the lower side, support lies at 16800 points, he added.
For the overall May series, however, the index is seen testing the 18000-point level, analysts say.
However, amid the current volatile environment across global equities due to fears of inflation and aggressive policy tightening by the US Federal Reserve, a fall below 17000 points is likely to take the index till 16500 points.
Today, the index ended 1.2% higher at 17245.05 points, after having risen to the day’s high of 17322.50 points. In the April series, the index fell nearly 1.3%.
Open interest in the May futures contract saw open interest soar nearly 50%, signalling at the build-up of long positions by traders.
Meanwhile, bullish bets were placed in Hindustan Unilever’s derivatives counter as the stock surged over 4% today on the back of better-than-expected earnings for Jan-Mar. The May futures contract of Hindustan Unilever saw open interest addition of 39% today, signalling that traders expect the momentum to continue.
In the options chain, traders bought out-of-the-money call options of the 2280- and 2300-rupee strike prices, while they sold out-of-the-money put options across the 2140-2180 rupee strike prices.
Further, the call option of the 2400-rupee strike price had the highest open interest concentration and market participants expect the stock to extend gains till this level in the near term.
On the lower side, support for the stock lies at 2,160-2,180 rupees, said Kunal Shah, derivatives analyst, LKP Securities.
Today, the stock ended 4.5% higher at 2,241.85 rupees.
–Nifty 50 May ended at 17253.50, up 172.55 points; 8.45-point premium to spot index
–Nifty 50 Jun ended at 17278.00, up 166.60 points; 32.95-point premium to spot index
The total turnover in the futures and options segment of the National Stock Exchange was about 191.7 trln rupees, compared with 98.8 trln rupees on Wednesday.
The turnover in index options was 187.6 trln rupees, against 94.1 trln rupees during the previous session. The total premium turnover of index and stock options was 399.3 bln rupees, compared with 371.4 bln rupees on Wednesday.
The most actively traded underlying stocks were HDFC Bank, Hindalco Industries, ICICI Bank, Reliance Industries, Infosys, Hindustan Unilever, Tata Consultancy Services, Tata Steel, and Housing Development Finance Corp, and Bajaj Finance. End
Edited by Avishek Dutta
Cogencis news is now Informist. 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 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Source: Cogencis
![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?resize=120%2C86&ssl=1)
