Informist, Monday, Jan 17, 2022

By Vivek Kumar

MUMBAI – Traders placed bullish bets in UltraTech Cement's derivatives segment today after the company reported better-than-expected earnings for the quarter ended December.

Open interest in the January futures contract of the stock jumped nearly 13% to 1.99 mln, indicating a fresh build-up of long positions. Premiums of the 8,000, 8,100 and 8,200-rupee call options of the stock jumped 50-70%, while the put option premiums of 7,500, 7,700 and 7,800 rupees fell 60-70%.

The stock closed 2.7% higher at 7,870.10 rupees in the cash market today. Intraday, it jumped nearly 4% to hit a two-month high of 7,946 rupees.

Going ahead, the 8,000-rupee level is likely to be an immediate near-term hurdle for the stock.

Positive bets were also placed in Hero MotoCorp, Maruti Suzuki India, Tata Motors and JSW Steel following the gains in their stocks in the cash market today. On the other hand, HCL Technologies witnessed some bearish bets due to weak margin in the services business.

However, analysts do not expect any significant fall for HCL Technologies from current levels. Going ahead, HCL Technologies may find some support around the 1,200-1,210 rupee levels, and buying at those levels may help it to move higher towards 1,300 rupees again, said Ratnesh Goyal, senior technical and derivatives analyst at Arihant Capital Markets.

The stock ended nearly 6% lower at 1,258.75 rupees in the cash market today.

Amid focus on specific stocks due to the earnings season, the Nifty 50 remained in a range of less than 100 points today. It hit a high of 18321.55 points and a low of 18228.75 points, before closing at 18308.10 points with 0.3% gains.

In the options segment, selling was seen across major call and put options of the 50-stock index. The selling was more aggressive on the put side, indicating a positive bias in the market.

Among call options, 18300 and 18400 points witnessed maximum addition of open interest today, while among put options, it was 17500 and 18300 points. 

Analysts expect the benchmark index to face resistance at 18400 points as they believe it will move in the range of 18000-18400 points for the upcoming few sessions.

-–Nifty 50 Jan ended at 18339.90, up 44.90 points; 31.80-point premium to spot index
-–Nifty 50 Feb ended at 18386.30, up 44.45 points; 78.20-point premium to spot index

-–Nifty 50 Mar ended at 18441.00, up 47.25 points; 132.90-point premium to spot index

 
The total turnover in the futures and options segment of the NSE was at 46.2 trln rupees compared to 43.4 trln rupees on Friday.
 
The turnover in index options was 42.1 trln rupees, against 39.7 trln rupees the previous day. The total premium turnover of index and stock options was at 242 bln rupees compared to 267.4 bln rupees on Friday.
 
The most actively traded underlying stocks included Tata Motors, HCL Technologies, HDFC Bank, UltraTech Cement, Tata Consultancy Services, Tata Steel, State Bank of India, Reliance Industries, Infosys, Tata Power Co, Axis Bank ICICI Bank and Maruti Suzuki India.  End

Edited by Avishek Dutta

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