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Informist, Thursday, Jan. 30, 2025

By Anjana Therese Antony

MUMBAI – Traders added slightly bullish bets in the derivatives chain of Sun Pharmaceutical Industries Thursday ahead of likely strong earnings of thre company for the December quarter, scheduled to be released Friday. Premiums on call options close to the spot level expiring next month rose, while those on deep out-of-the-money call strikes declined, hinting that a surge is not likely for the stock in the near term. 

The company is expected to post on-year healthy growth in its top line and bottom line for the December quarter, supported by a robust rise in the US specialty products business and steady domestic sales, broking firms said in their earnings preview reports. The pharmaceutical player's consolidated net profit is seen rising 15% on year to INR 29 billion and revenue is expected to grow 9% to INR 134.40 billion, according to the average of estimates from 12 broking firms. 

The stock closed 0.2% higher at INR 1,739.10 on the National Stock Exchange. Support for the stock is seen at INR 1,700-INR 1,680 and resistance at INR 1,800-INR 1,860 for the near term, a derivatives analyst at a domestic broking firm said. In the options chain of Sun Pharmaceuticals, premiums on INR 1,720-INR 1,840 call strikes rose 3-9%, while those on INR 1,860-INR 2,000 call contracts fell 4-20%. The maximum open interest addition was at the INR 1,800 call and INR 1,720 put contracts. Traders also added long positions in the February series of Sun Pharmaceuticals and open interest surged 29% to 14.65 million. 

A similar trend was also observed in the derivatives chain of the Nifty 50, which closed higher for the third consecutive session. The index ended 0.4% higher at 23249.50 points on short covering ahead of its monthly expiry of futures and options contracts. Premiums on 23200-24000 call options of the Nifty 50 expiring next week rose 5-17%, while those on 23200-22700 put strikes fell 31-37%. The highest addition of open interest was at the 25950-point call and 21100-point put options. 

Some analysts said the bias is slowly turning positive, but only a gradual recovery is expected for the market amid recurring selling pressure from foreign investors, slowdown in corporate earnings growth, and worries about lower returns from the market this year as well. 

--Nifty 50 Jan closed at 23249.00, up 100.75 points; 0.50-point discount to spot index
--Nifty 50 Feb closed at 23446.00, up 166.65 points; 196.50-point premium to spot index
--Nifty 50 Mar closed at 23595.00, up 166.20 points; 345.50-point premium to spot index

Reliance Industries, Tata Motors, Bajaj Finance, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India, Adani Ports and Special Economic Zone, Bharat Electronics, Infosys, Larsen & Toubro, Maruti Suzuki India, Bharti Airtel, Bajaj Finserv, and Adani Enterprises were the most actively traded underlying contracts.  End

Edited by Avishek Dutta

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