Informist, Thursday, Jun 30, 2022
By Vaibhavi
NEW DELHI – After a turbulent June derivatives series, analysts believe the Nifty 50 could find some calm at the beginning of the July series before the earnings season kicks in.
The market is poised to face several headwinds as it enters the July derivatives series, which includes the earnings season that will paint a picture about the impact of soaring prices and rate hikes by central banks on corporate earnings.
Ratnesh Goyal, senior technical and derivatives analyst, Arihant Capital Markets, expects the Nifty 50 to remain range-bound at the start of the July derivatives series, as investors gear up for the upcoming events.
In the call options of the Nifty 50 expiring on Jul 7, open interest was added across the 15800-16200 strike price contracts and their premiums fell 20-50%, indicating that gains for the benchmark index are likely to be limited.
For the first half of the July derivatives series, the Nifty 50 could test 16200 points, which is not a significant rise from the current levels, says Nandish Shah, technical and derivatives analyst at HDFC Securities.
On the downside, put options of 15500, 15600 and 15700 strike prices saw substantial open interest additions, and hence analysts expect the zone to provide a strong support to the Nifty 50.
The rollover of positions to the Nifty 50's July derivative series was also a tad higher than the three-month average as on Wednesday, which indicated that a slight recovery may be on the cards for the index.
Today, the Nifty 50 opened lower but quickly recovered and tested a high of 15890 points. However, selling pressures pulled it lower to 15728.85. The index eventually ended 0.1% lower at 15780.25 points.
Among specific stocks, Bajaj Auto, Eicher Motors and Cipla were the worst hit Nifty 50 stocks and that saw bearish bets being added to their derivatives segment.
--Nifty 50 Jul closed at 15718.00, down 62.85 points; 62.25-point discount to spot index
--Nifty 50 Aug closed at 15742.00, down 67.80 points; 38.25-point discount to spot index
The total turnover in the futures and options segment of the National Stock Exchange was 204.83 trln rupees compared with 91.55 trln rupees on Wednesday.
The turnover in index options was 201.41 trln rupees, significantly higher than 87.68 trln rupees in the previous session. The total premium turnover of index and stock options was 467.85 bln rupees compared with 340.39 bln rupees on Wednesday.
The most-actively traded underlying stocks were Reliance Industries, HDFC Bank, State Bank of India, ICICI Bank, Tata Motors, Infosys, Axis Bank, Tata Steel, Bajaj Finance and Housing Development Finance Corp. End
Edited by Aditya Sakorkar
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