More Stories

Informist, Monday, Sep 23, 2024

By Anjana Therese Antony

MUMBAI – Traders bought out-of-the-money call options of the Nifty 50 after the index hit a fresh record high today, extending gains for the third straight session. They now expect the index to cross the psychologically-important level of 26000 points, which is merely 60 points away from the current level.

The near-to-medium term bias of investors towards the domestic equity market remains positive, while stretched valuations could lead to periodic corrections, which are considered a good opportunity to buy equities, they said.

With worries slowly fading about a likely recession in the US, analysts said the market may move in a tight range in the absence of major triggers. Strong inflows from foreign investors and a robust outlook on business and earnings could also push Indian equities higher in the medium term. The government's thrust to improve rural consumption is also expected to drive demand for major companies in the automobile and fast-moving consumer goods spaces.

Today, the Nifty 50 ended 0.6% higher at 25939.05 points and the BSE Sensex closed 0.5% higher at 84928.61 points, which are the record closing highs of both indices. The benchmark Nifty 50 is expected to cross the fresh record high of 25956 points, it hit today. The support for the 50-stock index is seen at 25850-25800 points and resistance at 26000-26100 for the near term.

In the options chain of the 50-stock index, premiums on the 26000-27000 call options rose 51-127%, while those on 26000-25500 put contracts declined 27-34%. The maximum open interest addition was at the 26000 strike of call as well as put options. The overall optimism was also visible in the futures segment of the index, with the September series closing 0.6% higher at 25915.20 points and open interest rising 0.4% to 13.82 mln. 

--Nifty 50 Sep closed at 25915.20, up 147.45 points; 23.85-point discount to spot index

--Nifty 50 Oct closed at 26045.00, up 157.60 points; 105.95-point premium to spot index

--Nifty 50 Nov closed at 26135.00; up 150.50 points; 195.95-point premium to spot index

HDFC Bank, ICICI Bank, State Bank of India, Reliance Industries, Bharti Airtel, Kotak Mahindra Bank, Mahindra & Mahindra, Tata Motors, Infosys, Larsen & Toubro, Bajaj Finance, and Inuds Towers were the most-actively traded contracts.  End

Edited by Aditya Sakorkar

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. 2024. All rights reserved.