Informist, Wednesday, May 10, 2023

By Anjana Therese Antony

MUMBAI – Futures and options contracts of the Nifty 50 hint that the market may remain in the green on Thursday, but gains could be capped. With aggressive writing observed in the options chain, except for call options at 18300-18350 range, analysts do not see a significant upmove for the market. 

"For Nifty 50, 18500 points is now a major hurdle to reach," said Ratnesh Goyal, senior technical and derivatives analyst at Arihant Capital Markets. 

Today, Nifty 50 closed 0.3% higher at 18315.10 points after a choppy intraday. The immediate support for the 50-stock index is 18200 points and resistance is 18380 points. Goyal said the index could move up to 18500 points if it surpasses its immediate resistance. 

In the call segment, strike prices above 18350 level saw selling pressure, hinting that market players do not expect a strong momentum in the 50-stock index. With some optimism towards 18350 strike price, its premium rose marginally to 30.30 rupees, and open interest rose was tad higher at 7.7 mln. Meanwhile, contracts in 18400-18500 levels saw selling pressure, where premium fell by 10-42% to the range of 15.0-9.1 rupees. 

On the put side, aggressive selling was observed at contracts in 18300-18200 levels, indicating that the market is not likely to fall in the next session. Premiums of these contracts fell 43-55% to 40.7-13.9 rupees. At 18200 strike, open interest rose by 1.7 mln to 11.8 mln.

The May futures contracts of the Nifty 50 closed at a premium of 27.75 points to the spot index today. Open interest in the contract was 0.49% higher at 11.3 mln, as per provisional data.

Analysts said that market participants may continue to focus more on Jan-Mar corporate earnings results of Indian companies, instead of taking cues from global markets. Consequently, more stock-specific reactions are likely in the coming sessions. 

--Nifty 50 May closed at 18342.85, up 36.45 points; 27.75-point premium to spot index

--Nifty 50 Jun closed at 18402.40, up 32.60 points; 87.30-point premium to spot index

--Nifty 50 Jul closed at 18464.35, up 28.60 points; 149.25-point premium to spot index

HDFC Bank, State Bank of India, ICICI Bank, Reliance Industries, Axis Bank, Bank of Baroda, IndusInd Bank, Apollo Tyres, Punjab National Bank, and Bajaj Finance were among the most actively traded underlying stocks.  End

Edited by Manisha Baxla

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