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Informist, Thursday, Apr. 24, 2025

By Anjana Therese Antony

MUMBAI – Traders placed slightly bullish bets in the options chain of Reliance Industries ahead of the company's March quarter earnings on Friday. The upside bets were despite the fact that the multinational entity is expected to post a sharp on-year slowdown in its earnings growth for the March quarter. The expected disappointing financial performance is because the company's key oil-to-chemicals segment continues to struggle. While premiums across put contracts of Reliance Industries expiring in May tumbled, those on call options which are 1-4% higher than the spot level, rose, indicating near-term bullishness. 

"Reliance Industries is trading on the verge of a bullish breakout," Vipin Kumar, senior derivatives and technical analyst at Globe Capital Market, said. The stock's sustenance above INR 1,325 on a closing basis might take it up to INR 1,400 in the immediate near term, Kumar said. On Thursday, the stock closed 0.1% higher at INR 1,301.60 on the National Stock Exchange. 

As per options data, sharp short covering is expected above the INR 1,340 spot level and the stock could rise up to INR 1,400-INR 1,410 levels in the immediate near term, Kumar said. "On the flip side, INR 1,200 will act as support on the downside," he added. Premiums on call options at INR 1,320-INR 1,350 expiring in May rose only 1-2%, while those on INR 1,300-INR 1,200 put contracts fell 6-10%. The maximum addition of open interest was at the INR 1,400 call and INR 1,300 put strikes. 

The Mumbai-based company is expected to post a 3% on-year fall in its consolidated net profit at INR 83.57 billion, while revenue is seen rising just 1% to INR 2.40 trillion, according to the average of estimates from 10 broking houses. The company's oil-to-chemicals and oil exploration business is likely to report lower operating profits compared to the year-ago period, while its digital business under Reliance Jio Infocomm is likely to be its fastest-growing business. 

Corporate earnings for the March quarter remain under investors' focus, particularly managements' comments on their business outlook for the current financial year and risks associated with US tariffs. However, worries in the market with respect to tariffs have eased after the US announced a 90-day pause and hinted at easing its stance on one of its key trading partners, China. 

As a result, benchmark equity indices in India have risen over 11% from their 10-month low hit in the beginning of April. On Thursday, indices took a breather from their seven-day winning run and closed marginally lower. The Nifty 50 closed 0.3% lower at 24246.70 points and the BSE Sensex ended 0.4% lower at 79801.43 points. 

--Nifty 50 Apr closed at 24249.00, down 63.70 points; 2.30-point premium to the spot index

--Nifty 50 May closed at 24375.00, down 73.70 points; 128.30-point premium to the spot index

--Nifty 50 Jun closed at 24486.00, down 71.20 points; 239.30-point premium to the spot index

HDFC Bank, Bajaj Finance, Reliance Industries, ICICI Bank, State Bank of India, Hindustan Unilever, Bharti Airtel, Kotak Mahindra Bank, Infosys, Vedanta, Axis Bank, Tata Motors, IndusInd Bank, Tata Consultancy Services, Maruti Suzuki India, Larsen & Toubro, Nestle India, and Tata Consumer Products were the most active underlying stocks on Thursday.  End

Edited by Avishek Dutta

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