Back

Equity Futures: F&O investors cautious ahead of macroeconomic events

Informist, Monday, Jun 12, 2023

 

By Padmini Dhruvaraj

 

MUMBAI – Investors refrained from placing aggressive bets both in the spot and the derivatives markets ahead of key macroeconomic events such as domestic CPI data for May, India Industrial Production data for April, US Federal Open Market Committee meeting, and European Central Bank rate hike decision.

 

The Nifty 50 options chain indicated that traders were cautious ahead of the US Fed's policy meeting outcome due on Wednesday, said Ganesh Angaj, technical head at NVS Brokerage.

 

The 50-stock index traded in a thin range-bound session today to close 0.2% higher at 18601.50 points. "Technically, the Nifty 50 hovered between 18560 and 18630, and the narrow range activity clearly indicates indecisiveness between the bulls and bears," said Shrikant Chouhan, head of research at Kotak Securities.

 

As a result, the call options premium at levels of 18600 rose and fell throughout the day and eventually closed nearly 14% higher at 91.35 rupees, as the Nifty 50 closed above those levels in the spot market. The net open interest addition was also the highest at the 18600 strike price with 1.25 mln new positions being added. 

 

The range-bound session also led the investors to unwind their long positions at the 18700 strike price today, a technical analyst said. However, the total open interest was the highest at 18700 strike, indicating that the market is in a wait-and-watch mode, the analyst added.

 

Some aggressive call options selling was also seen in contracts above 18900 strike prices, which also reflects that investors do not anticipate much upside in the market this week.

 

On the put front, premiums at the 18600 strike price fell 42% to 49.75 rupees, while the change in open interest was the highest at the strike, with 4.54 mln new positions being added.

 

Meanwhile, premiums of strike prices of 18000-18550 fell 15%-55% today. 

 

Analysts said levels of 18550 would act as an immediate support level to the Nifty 50 in the spot market and above which the index could move up till 18650-18700. On the other hand, a fresh sell-off is possible if the index falls below 18550 points.

 

The June futures contract of the Nifty 50 closed at a premium of 88.90 points to the spot index today. Open interest in the contract fell 4.28% to 9.29 mln, as per provisional data.

 

–Nifty 50 Jun closed at 18690.40, up 58.85 points; 88.90-point premium to spot index

–Nifty 50 Jul closed at 18771.40, up 51.85 points; 169.90-point premium to spot index

–Nifty 50 Aug closed at 18867.05, up 51.10 points; 265.55-point premium to spot index


Infosys, Hindustan Aeronautics, Reliance Industries, Dixon Technologies, NTPC, Adani Enterprises, and Tata Consultancy Services were amongst the most actively traded underlying stocks. 

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Maheswaran Parameswaran

 

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 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2023. All rights reserved.

 

Other News.

Facing negative net worth, Spencer’s Retail to shut loss-making stores

Informist, Thursday, Feb 22, 2024 –Source: Spencer's Retail to shut down all loss-making stores–Source: Spencer's Retail to focus only on Delhi, Kolkata, Hyderabad–Source: Spencer's Retail to shut stores due to accumulated losses–CONTEXT: Spencer's Retail consol net worth (-)5.1 bln rupees end-Dec–Source: Spencer's Retail to right-size ops at corporate level By Avishek Rakshit KOLKATA – Aiming to bounce back to the black […]

Himachal budget ups FY25 pension outgo by 10% on revert to old scheme

Informist, Thursday, Feb 22, 2024 By Krity Ambey NEW DELHI – Himachal Pradesh, in its Budget for 2024-25 (Apr-Mar), has raised the estimate of expenditure towards pension in the next fiscal year to 102.54 bln rupees, up 10% from the revised estimate of 93.18 bln rupees for the current fiscal. This comes on the back of the state's decision to switch to […]

Grasim launches Birla Opus paints, aims to be profitable in 3 years

Informist, Thursday, Feb 22, 2024 –Grasim launches paints business under 'Birla Opus' brand –Grasim Chairman Birla: Entered paints business on infra opportunity –Grasim Chairman Birla: Launching Panipat, Ludhiana, Cheyyar plants –Grasim Chairman Birla:Chamarajanagar plant to be launched by Apr-Jun –Grasim Chairman Birla: Kharagpur plant to be launched by Jan-Mar 2025 –Grasim: Launching services in Punjab, Haryana, Tamil Nadu in Mar –Grasim:To launch […]