Informist, Wednesday, Sep 22, 2021
By Joe Milton
MUMBAI – Shares of Godrej Properties surged over 14% and touched its all-time high of 1,973 rupees on strong sales of its project in Noida, which prompted traders to place bullish bets in the derivative segment of the stock.
Open interest in September futures of Godrej Properties gained 3% to 1.9 mln as traders initiated long positions on hope of further gains.
However, buying shares of Godrej Properties at the current level is risky, said Rajesh Bhosale, technical and derivative analyst at Angel Broking. He added that 3-4% correction in the stock might provide a fresh buying opportunity.
The stock closed at 1,951.10 rupees, up 13.2%, and has gained over 20% in the last three sessions. With the positive momentum intact, analysts expect the stock to move towards 2,050 rupees in near-term.
On sectoral front, shares of tyre companies witnessed traction today due to fall in rubber prices, which is expected to reduce their input cost and improve margins.
Following this, shares of Apollo Tyres and Balkrishna Industries gained around 6% each. The positive outlook prompted traders to add long positions in September futures of both these companies.
Open interest in September futures of Apollo Tyres and Balkrishna Industries surged nearly 17% and 16.1%, respectively.
In the call options segment of Apollo Tyres, buyers were active across 230-260 rupees strike price as the premium across these strikes have more than doubled.
Today, shares of Apollo Tyres gained nearly 6% and closed at 232.55 rupees. The stock is further expected to move towards 240-245 rupees, said Bhosale.
Apart from this, shares of Zee Entertainment Enterprises surged nearly 40%, and touched nearly its two-year high of 355.35 rupees as the company announced it merger with Sony Pictures Networks India Pvt Ltd.
Open interest in September futures of Zee Entertainment fell 4.5% to 44.5 mln as traders booked their profit. Due to the sharp rise in the stock, out-of-the-money strike prices for the stock weren't available for trade.
On technical front, analysts expect shares of Zee Entertainment to touch 400 rupees in the near-term.
In the September futures of Nifty 50, traders largely kept their positions unchanged as the open interest was up by just 0.3% as they exercised caution ahead of the outcome of the US Federal Reserve policy meeting later today.
The 50-stock index fell 0.1% and closed at 17546.65 points, and touched an intraday high and low of 17610.45 points and 17524 points, respectively.
-–Nifty 50 Sep ended at 17567.00, up 7.7 points; 20.35-point premium to the spot market
-–Nifty 50 Oct ended at 17604.25, up 14.15 points; 57.6-point premium to the spot market
-–Nifty 50 Nov ended at 17633.70, up 10.95 points; 87.05-point premium to the spot market
Total turnover in the futures and options segment of the NSE was 60.9 trln rupees today compared with 66.5 trln rupees on Tuesday.
Turnover in the index options was 56.2 trln rupees compared with 61.9 trln rupees in the previous session. The total premium turnover of index and stock options was 280.2 bln rupees compared with 342.2 bln rupees on Tuesday.
Zee Entertainment Enterprises, Adani Ports and Special Economic Zone, DLF Ltd, Tata Steel, ITC Ltd, Reliance Industries, Godrej Properties, Mindtree, Infosys, Tata Motors, Bajaj Finance, and Tech Mahindra were the other most actively traded stocks today. End
Edited by Maheswaran Parameswaran
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