Informist, Tuesday, Dec 13, 2022
By Vivek Kumar
MUMBAI – Traders aggressively added long positions in Polycab India’s futures contracts as the stock rose for the fourth consecutive session today to hit the highest level since listing in April 2019.
Options data showed the highest open interest build-up at 3,000-rupee call option, indicating immediate resistance around that level. Today, the stock closed 4.4% higher at 2,942 rupees.
“Immediate resistance for the stock is at 3,000 rupees and we can see some profit booking around that level,” said Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities. Ail said he would not recommend traders to buy the stock at current levels.
Open interest in the December futures contract of the stock surged 34.7% today to 1.2 mln and the contract ended at a premium of around 24 rupees to the spot index. The stock was among the most actively traded underlying on the National Stock Exchange today.
Premium on the 3,000-rupee call option of the stock tripled, while that on 3,100-rupee call option nearly quadrupled. Open interest in both the contracts increased sharply.
On the put side, traders sold 2,800 and 2,900 rupees strike price contracts. As a result, premiums on these contracts declined over 50% each.
Apart from Polycab India, traders added bullish positions in Adani Enterprises, State Bank of India, IndusInd Bank and Canara Bank.
Bets in the Nifty 50 too were positive today as the benchmark index closed above 18600 points. Traders bought 18800 points call option as the resistance for the index is expected to remain at that level.
The premiums on 19050 points call option fell 13%, indicating that significant upside is unlikely in the near term. The index closed 0.6% higher at 18608 points today.
–Nifty 50 Dec closed at 18711.50, up 106.30 points; 103.50-point premium to spot index
–Nifty 50 Jan closed at 18817.00, up 99.75 points; 209.00-point premium to spot index
–Nifty 50 Feb closed at 18903.00, up 100.75 points; 295.00-point premium to spot index
Total turnover in the futures and options segment of the National Stock Exchange was 143.03 trln rupees, against 124.58 trln rupees on Monday.
The turnover in index options was 140.31 trln rupees compared with 121.79 trln rupees in the previous session. The total premium turnover of index and stock options was 353.87 bln rupees compared with 402.02 bln rupees on Monday.
HDFC Bank, Adani Enterprises, Reliance Industries, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, Infosys, Axis Bank, State Bank of India, Bank of Baroda, Polycab India, IndusInd Bank, Tata Communications and Canara Bank were among the most actively traded underlying stocks. End
Edited by Aditya Sakorkar
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