Informist, Friday, Jul 8, 2022

By Ankika Biswas

MUMBAI – The Nifty 50's close above the 16200-mark today came after much struggle due to profit booking at higher levels. Covering of positions by call option writers at that strike price will be key to unlock further gains.

Traders were active at the 16200-strike price call option, going by the highest open interest concentration. If the index decisively remains above that level next week, it might test 16350-16400 points, said an analyst at Axis Securities.

On the other hand, failing to hold on to the 16200-level may see it retest 16000 points, the analyst noted. Backing this view was the highest open interest concentration at that strike price put option.

The trend for the index next week will be determined by global cues and corporate earnings. Tata Consultancy Services kick-started the earnings season for frontline companies today.

Today, the 50-stock index closed 0.5% higher at 16220.60 points, off the day's high of 16275.50 points.

Among the Nifty 50 constituents, bullish bets were seen in the July futures segment of Larsen & Toubro, going by the near 8% rise in open interest. The stock surged nearly 6% intraday to a one-month high of 1,702 rupees.

However, analysts see limited upside in the stock, given it has already gained over 8% in two days. They see it facing an immediate hurdle at 1,700 rupees, but a breach of this may push it towards 1,800 rupees.

Today, the stock closed nearly 5% higher at 1,687.45 rupees.

Among others, a notable build-up of long positions was also seen in Tata Motors and Coal India.

--Nifty 50 Jul closed at 16233.35, up 85.20 points; 12.75-point premium to spot index

--Nifty 50 Aug closed at 16245.00, up 76.60 points; 24.40-point premium to spot index

--Nifty 50 Sep closed at 16285.00, up 84.40 points; 64.40-point premium to spot index

The total turnover in the futures and options segment of the National Stock Exchange stood at 46.06 trln rupees today, against 214.8 trln rupees on the day of the weekly options expiry. 

At 43.49 trln rupees, the turnover in the index options was lower than 212.3 trln rupees in the previous session. The total premium turnover of index and stock options was much lower at 283.04 bln rupees compared with 435.9 bln rupees on Thursday.  

Reliance Industries, Tata Motors, Mahindra & Mahindra, HDFC Bank, ICICI Bank, Larsen & Toubro, TCS, Tata Steel, Axis Bank and Maruti Suzuki India were the most actively traded underlying stocks today.  End

Edited by Avishek Dutta

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