Informist, Monday, Oct 31, 2022
By Vaibhavi
NEW DELHI – A spurt of bullish bets flooded the derivatives segment of the Nifty 50 as the index moved past 18000 points today. Traders aggressively added fresh long positions, which reflects the underlying bullishness in the market, analysts said.
Today, the Nifty 50 opened above 17900 points due to largely positive global cues and extended the gains to surpass 18000 points, the first time since Sep 15. The headline index ended 1.3% higher at 18012.20 points.
As the index moved higher, traders unwounded their positions across the in-the-money call options of the 17500-17850 strike prices, which indicates that they expect much of the Nifty 50's gains to sustain.
Fresh positions were then added across out-of-the-money call options of the 18050-19300 strike prices, which lifted their premiums sharply. This also reflected the optimism among traders, as they expect the Nifty 50 to test these levels in the coming sessions.
A close above 18000 points has opened the gates for further gains and the Nifty 50 can now be expected to move towards 18200 points, said Ratnesh Goyal, senior technical and derivative analyst at Arihant Capital Markets.
Foreseeing more gains, Goyal also suggests investors to follow a 'buy-on-dips' strategy to add fresh long positions.
A similar bullish sentiment was also reflected in the futures segment of the index, with open interest rising over 6% in the Nifty 50's November futures contract, as traders covered their short positions and also added fresh long bets.
Among specific stocks, Bandhan Bank was a major laggard in today's session as the lender's lower-than-expected bottomline for the September quarter dented sentiment. The stock tanked nearly 11% in the cash market and that prompted traders to aggressively add bearish bets in its derivatives segment, anticipating more weakness in the scrip.
Open interest in the stock's November futures contract surged nearly 49%, reflecting a sharp jump in short positions.
"We expect weakness to continue for Bandhan Bank towards its support of 225 rupees," said Rajesh Bhosale, technical and derivative analyst at Angel One.
Bhosale also advised traders to avoid bottom-fishing for the stock at current levels and use any intraday bounce to exit from their long positions.
Today, the stock ended over 10% lower at 238.55 points.
--Nifty 50 Nov closed at 18054.90, up 224.70 points; 42.70-point premium to spot index
--Nifty 50 Dec closed at 18111.50, up 218.40 points; 99.30-point premium to spot index
--Nifty 50 Jan closed at 18161.00, up 216.85 points; 148.80-point premium to spot index
Maruti Suzuki India, Bandhan Bank, Dr Reddy's Laboratories, Bajaj Finance, Ambuja Cements, Infosys, Axis Bank, HDFC Bank, ICICI Bank, and Reliance Industries were among the most actively traded underlying stocks today.
Volumes for today's derivatives trade were not updated on the NSE's website at the time of writing this story. End
Edited by Avishek Dutta
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 feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Monday, Oct 31, 2022
By Vaibhavi
NEW DELHI – A spurt of bullish bets flooded the derivatives segment of the Nifty 50 as the index moved past 18000 points today. Traders aggressively added fresh long positions, which reflects the underlying bullishness in the market, analysts said.
Today, the Nifty 50 opened above 17900 points due to largely positive global cues and extended the gains to surpass 18000 points, the first time since Sep 15. The headline index ended 1.3% higher at 18012.20 points.
As the index moved higher, traders unwounded their positions across the in-the-money call options of the 17500-17850 strike prices, which indicates that they expect much of the Nifty 50's gains to sustain.
Fresh positions were then added across out-of-the-money call options of the 18050-19300 strike prices, which lifted their premiums sharply. This also reflected the optimism among traders, as they expect the Nifty 50 to test these levels in the coming sessions.
A close above 18000 points has opened the gates for further gains and the Nifty 50 can now be expected to move towards 18200 points, said Ratnesh Goyal, senior technical and derivative analyst at Arihant Capital Markets.
Foreseeing more gains, Goyal also suggests investors to follow a 'buy-on-dips' strategy to add fresh long positions.
A similar bullish sentiment was also reflected in the futures segment of the index, with open interest rising over 6% in the Nifty 50's November futures contract, as traders covered their short positions and also added fresh long bets.
Among specific stocks, Bandhan Bank was a major laggard in today's session as the lender's lower-than-expected bottomline for the September quarter dented sentiment. The stock tanked nearly 11% in the cash market and that prompted traders to aggressively add bearish bets in its derivatives segment, anticipating more weakness in the scrip.
Open interest in the stock's November futures contract surged nearly 49%, reflecting a sharp jump in short positions.
"We expect weakness to continue for Bandhan Bank towards its support of 225 rupees," said Rajesh Bhosale, technical and derivative analyst at Angel One.
Bhosale also advised traders to avoid bottom-fishing for the stock at current levels and use any intraday bounce to exit from their long positions.
Today, the stock ended over 10% lower at 238.55 points.
--Nifty 50 Nov closed at 18054.90, up 224.70 points; 42.70-point premium to spot index
--Nifty 50 Dec closed at 18111.50, up 218.40 points; 99.30-point premium to spot index
--Nifty 50 Jan closed at 18161.00, up 216.85 points; 148.80-point premium to spot index
Maruti Suzuki India, Bandhan Bank, Dr Reddy's Laboratories, Bajaj Finance, Ambuja Cements, Infosys, Axis Bank, HDFC Bank, ICICI Bank, and Reliance Industries were among the most actively traded underlying stocks today.
Volumes for today's derivatives trade were not updated on the NSE's website at the time of writing this story. End
Edited by Avishek Dutta
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 feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
