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Informist, Wednesday, Jan. 1, 2025

 

By Anshul Choudhary

 

MUMBAI – Options data show traders covered short positions as the Nifty 50 recovered from its initial selling pressure to close nearly 100 points higher at 23742.90 points Wednesday. However, a close below 23800 points meant analysts are unsure if the markets would be able to maintain these gains. Options traders also did not rush just yet to add long positions.

 

Options data suggest range-bound movement will continue as market participants await the December quarter earnings, which will help them to assess if government spending actually rose in the quarter as expected. They are also waiting for clarity on incoming US President Donald Trump's policies. Trump takes charge on Jan. 20.

 

For call options expiring this week, traders covered their short positions at in-the-money options as the Nifty 50 bounced back from the support level of 23600-23500 points. Some short covering was also seen at 24000 calls, but traders refrained from adding long bets above these levels, indicating that the gains are still seen to be capped. The highest open interest was at 24300-24500 calls, followed by 24100 calls.

 

Traders sold put options across the board, indicating hopes of some more gains Thursday. The highest open interest addition was seen at 23200 puts, followed by 23700 puts. Analysts said 23500 points remains a key support level for the Nifty 50 till next week's expiry.

 

Among stocks, Maruti Suzuki was the top gainer among Nifty 50 constituents, rising over 3?ter the company said its sales in December rose nearly 30% on year to 178,248 units. It pushed traders to add long bets on the stock, and they bought call options across the board. Data suggest the stock may rise more before facing resistance at INR 11,500, indicating a gain of 2.6% from Wednesday's close of INR 11,208.30. Its support is seen at INR 11,000.

 

The January futures contract of the Nifty 50 closed at a premium of 164.10 points to the spot index. Open interest in the contract rose 0.4% to 13.35 million, according to provisional data.

 

--Nifty 50 Jan closed at 23907, up 101.15 points

--Nifty 50 Feb closed at 24050, up 97.15 points; 307.10-point premium to spot index

--Nifty 50 Mar closed at 24210, up 116.00 points; 467.10-point premium to spot index

 

HDFC Bank, ICICI Bank, Reliance Industries, Maruti Suzuki, ITC, Bajaj Auto, State Bank of India, Adani Enterprises, Bajaj Finance, Mahindra & Mahindra, Hindalco Industries, Larsen & Toubro, Infosys, and Tata Motors were the most actively traded contracts.  End

 

Edited by Rajeev Pai

 

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