Informist, Wednesday, Jul 27, 2022
By Vidya Sreedhar
MUMBAI – Rollover of positions to the August derivative series gathered pace today and a higher rollover cost indicates that traders are carrying forward long positions, said analysts.
Data points and the momentum seen today suggests that the Nifty 50 could end the July derivative series closer to 16700 points on Thursday.
However, it will hinge on the outcome of the US Federal Reserve’s two-day monetary policy meeting later today. The Street widely expects the central bank to raise interest rates by 75 basis points as inflation remains at a multi-decade high.
Besides Fed’s rate action, the commentary of Chairman Jerome Powell will be more closely tracked as the central bank’s assessment of the economy will be crucial at a time when recession fears have set in.
Today, Nifty 50 ended nearly 1% higher in the cash market at 16641.80 points, recouping all of Tuesday’s losses.
The easing of volatility in the recent sessions suggests that nervousness among investors has somewhat mellowed down, analysts said.
After touching a three-month high of 28.13 points in June, India VIX has cooled off and is currently hovering at around 18 levels.
“At the beginning of the July series, the net short positions of FIIs were at an over 4-year high, but we witnessed heavy short covering since last week,” said a derivatives analyst at a domestic brokerage. “While we have seen intermittent weakness, the lower volatility indicates there is no panic in the market.”
If the momentum seen today sustains on Thursday, then the Nifty 50 could test 16700 points, the analyst said. Today, India VIX ended 0.2% down at 18.13 points.
–Nifty 50 Jul closed at 16660.40, up 169.10 points; 18.6-point premium to spot index
–Nifty 50 Aug closed at 16678.60, up 174.65 points; 36.8-point premium to spot index
–Nifty 50 Sep closed at 16720.00, up 177.90 points; 78.2-point premium to spot index
The total turnover in the futures and options segment of the National Stock Exchange surged to 107 trln rupees today from 90 trln rupees Tuesday.
The turnover in index options at 102 trln rupees was higher than 85 trln rupees seen on Tuesday. The total premium turnover of the index and stock options was at 388 bln rupees compared with 365 bln rupees in the previous session.
Reliance Industries, HDFC Bank, ICICI Bank, Adani Enterprises, Bajaj Finance, Infosys, Maruti Suzuki India, State Bank of India, Bharti Airtel, and Tata Motors were among the most actively traded underlying stocks. End
Edited by Shirsha Thakur
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 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Source: Cogencis
