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Informist, Friday, Mar. 7, 2025

By Alina Geogy

MUMBAI – Traders added bullish bets in the derivatives chain of Reliance Industries after some brokerage companies reiterated their bullish outlook for the company. They added long positions to the call options of the company, with premiums nearly tripling on several calls.

Both highest open interest concentration as well as maximum addition of open interest were at the INR 1,300-call and INR 1,200-put contracts. This call strike is 4% higher from Reliance Industries' spot level and the put option is 4% lower from the current level. Shares of Reliance Industries closed over 3% higher at INR 1,249.80 and were the top gainers in the Nifty 50.

Major foreign brokerage firm Jefferies has reiterated its 'buy' rating on the stock with a target price of INR 1,600, while Kotak Institutional Equities has upgraded the stock to 'buy', as per various media reports. Emkay Global Financial Services has also retained its 'buy' rating on the stock, but reduced its target price by 8% to INR 1,450.

Emkay Global does not expect the company to be directly affected by US tariffs or counter measures as import duty on refined products and petrochemicals is in the 0-10% range, which is not significant compared to automobiles. However, the brokerage has reduced its estimates for the company's upstream operations citing lower realisations, and also cut these for the oil-to-chemicals business.

Emkay Global said it has taken a conservative view on businesses facing some uncertainty, namely, Reliance Jio and the upstream business, which face uncertainties regarding further tariff hikes and realisations, respectively. The company's retail business is expected to grow in double digits after a phase of network optimisation to remove pandemic and acquisition-led inefficiencies in FY25, the brokerage said.

Reliance Industries is the third-largest stock in the Nifty 50 with a weightage of over 8%. Gains in this heavyweight stock prevented the Nifty 50 from any major fall throughout the session Friday, despite weakness in shares of several banks and information technology firms. The rise in the stock was the primary reason behind the 1% rise in the Nifty Oil & Gas index, which made it the second-biggest gainer among sectoral indices.

The 'oversold' condition of the domestic market triggered some buying momentum this week, helping the Nifty 50 snap a three-week losing streak. A fall in the price of Brent crude oil futures below $70 per barrel, the rise of the rupee to a near two-week high against the dollar, and liquidity boosting measures by the Reserve Bank of India were key factors that lifted investor sentiment over the past few sessions. On Friday, the Nifty 50 closed at 22552.50 points, while its March futures contract closed at a premium of 86.50 points to the spot index.

--Nifty 50 Mar closed at 22639.00, up 18.05 points
--Nifty 50 Apr closed at 22787.70, up 23.85 points; 235.20-point premium to spot index

--Nifty 50 May closed at 22905.00, up 31.30 points; 352.50-point premium to spot index

The most active underlying stocks on the National Stock Exchange were Reliance Industries, IndusInd Bank, HDFC Bank, BSE, Infosys, Axis Bank, ICICI Bank, Bharat Electronics, Tata Steel, NTPC, Tata Motors, SRF, Bajaj Finance, State Bank of India, and Hindalco Industries.  End

Edited by Ashish Shirke

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