Informist, Friday, Dec 16, 2022
By Vivek Kumar
MUMBAI – Open interest in December futures contract of Dr Reddy’s Laboratories soared 51% today as per the provisional data and the stock hit a two-month low of 4,261.25 rupees, indicating that traders likely added short positions today.
The pharmaceutical company’s stock ended 3.6% lower at 4,309.10 rupees as the company said it was abandoning an anti-psoriasis drug candidate. The overall weakness in the pharmaceutical sector today also weighed on the stock.
“Volume, open interest and price action all combined indicate weakness for the stock,” said Viraj Vyas, a technical and derivatives analyst-institutional equities at Ashika Group.
In the options segment, traders sold put options of 4,300 and 4,100 rupees strike prices, which resulted in their premiums rising around 92% and 20%, respectively. These contracts also witnessed strong addition of open interest. The maximum build-up of open interest on the put side was at 4,200 rupees strike price.
Meanwhile, premiums on 4,400 and 4,500 rupees strike price contracts fell around 42% and 50%, respectively, with the highest addition of open interest today.
“The stock was trading around its 200-day exponential moving average of 4,380 rupees for the past couple months, and today it has given a breakout on the downside,” Vyas said. This level will now act as a resistance for the stock, he said.
–Nifty 50 Dec closed at 18330.00, down 137.00 points; 61.00-point premium to spot index
–Nifty 50 Jan closed at 18441.00, down 140.90 points; 172.00-point premium to spot index
–Nifty 50 Feb closed at 18530.00, down 144.35 points; 261.00-point premium to spot index
Total turnover in the futures and options segment of the National Stock Exchange was 140.61 trln rupees, against 347.41 trln rupees on Thursday.
The turnover in index options was 136.62 trln rupees compared with 344.07 trln rupees in the previous session. The total premium turnover of index and stock options was 557.89 bln rupees compared with 513.35 bln rupees on Thursday.
Reliance Industries, Tata Motors, HDFC Bank, Adani Enterprises, State Bank of India, ICICI Bank, Infosys, Axis Bank, Dr Reddy’s Laboratories, Bank of Baroda, Adani Ports and Special Economic Zone, Bajaj Finance, and Canara Bank were among the most actively traded underlying stocks. End
Edited by Aditya Sakorkar
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