Informist, Tuesday, Oct 12, 2021

By Vivek Kumar

MUMBAI – Even after strong buying interest today, the trend for the two-wheeler companies is seen mixed in the near term with Bajaj Auto and Eicher Motors likely to see further upside and view on Hero MotoCorp being cautious, technical and derivatives analysts said.

The premiums of 4,000 rupees and 4,200 rupees call option of Bajaj Auto rose around 60% each today. Meanwhile, the value of 3,900 rupees and 3,950 rupees put options fell by around 40%, indicating that investors do not see profit booking on the counter.

Bajaj Auto rose 3.3% today to close at 3,978.75 rupees in the spot market with open interest in its October futures rising 2.6%.

Further, Eicher Motors witnessed good addition of open interest at its 3,200 rupees call option today with the premiums of the contract rising 27%. The stock closed 2% higher at 2,909.60 rupees in the cash market.

While the stock may face resistance at 3,000 rupees, lack of put writing indicates indecisiveness among market participants about the downside, said Shubham Sontakke, an independent technical analyst.

Meanwhile, analysts recommended investors to remain cautious when it comes to Hero MotoCorp as the stock was trading below its 200-day simple moving average of 3,000 rupees.

One should avoid the stock for now as it has underperformed the Nifty 50 over time and is showing some weakness on technical charts, Sontakke said.

The stock closed 2.1% higher at 2,916.65 rupees in the spot market with open interest in its October futures falling 2.5%. The contract was trading at less than 10-rupees premium to the spot market.

With stock-specific action continuing to dominate the market momentum, analysts do not expect Nifty 50 to see any sharp gains. 

Traders sold 18200 and 18250 points call options of the index, while buying 18000 points call option. Today, the 50-stock index closed 0.3% higher at 17991.95 points.

The gains in banks helped the Nifty 50 inch further higher today and if gains sustain above 18000 points going ahead, then 18150-18240 points may be on the cards, said Hansraj Modi, head-technical and derivatives at BP Wealth Management.

-–Nifty 50 Oct ended at 18008.50, up 35.45 points; 16.55-point premium to spot index

-–Nifty 50 Nov ended at 18041.45, up 34.40 points; 49.50-point premium to spot index

-–Nifty 50 Dec ended at 18082.00, up 34.70 points; 90.05-point premium to spot index

Total turnover in the futures and options segment of NSE was 52.73 trln rupees today, compared with 45.28 trln rupees on Monday.  

The turnover in index options was about 48.84 trln rupees compared with 41.08 trln rupees in the previous session. The total premium turnover of index and stock options was 267.55 bln rupees compared with 264.02 bln rupees Monday.

Tata Motors, Infosys, State Bank of India, HCT Technologies, Tata Power Co, Tata Consultancy Services, Indian Energy Exchange, ITC, Tata Steel, Zee Entertainment Enterprises, Vedanta, Reliance Industries, Wipro and ICICI Bank were the other most actively traded stocks today.  End

Edited by Arshad Hussain

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