Informist, Thursday, Oct 14, 2021

By Vivek Kumar

MUMBAI – The bulls may continue to run the show in the domestic equity market going ahead as derivatives data showed that investors expect the Nifty 50 to move towards 18500-18600 points after it rose over 4% in a couple of weeks. 

In the Nifty 50's options expiring on Oct 21, premiums on 18500, 18600 and 18700 points rose 20-70% today after the index surpassed 18300 points and closed comfortably above this level.

The benchmark index rose for the sixth session in a row and closed at a record level of 18338.55 points, up 1%, today. In six sessions, it has gained 2.5%.

The call option of 19000-point strike price had the highest open interest and also saw maximum addition of open interest today, but its premium fell 25%.

Banks and financial services companies contributed the most to the Nifty 50's gains today with HDFC Bank leading from the front ahead of its earnings on Saturday.

The Nifty Bank hit its lifetime high of 39375.05 points as the sectoral index also rose for the sixth session. It has jumped nearly 5% in these six sessions, outperforming the benchmark indices.

Looking at valuations, frontline banks such as HDFC Bank, Kotak Mahindra Bank and State Bank of India are trading at decent price-to-equity ratio and in the last year, HDFC Bank and Kotak Mahindra Bank's shares have underperformed the broader market, said Shubham Sontakke, an independent technical analyst.

In the Nifty Bank's call options, 40000-point strike price witnessed maximum addition of open interest and its premium surged over 160%, indicating a bullish view for the sector ahead.

Today, the Nifty Bank index closed 1.8% higher at 39340.90 points. Open interest in its October futures contract rose 2.6% to 1.7 mln.

-–Nifty 50 Oct ended at 18356.75, up 184.00 points; 18.20-point premium to spot index

-–Nifty 50 Nov ended at 18386.50, up 181.30 points; 47.95-point premium to spot index

-–Nifty 50 Dec ended at 18443.00, up 190.05 points; 104.45-point premium to spot index

Total turnover in the futures and options segment of NSE was 121.43 trln rupees today, compared with 59.26 trln rupees on Wednesday.  

The turnover in index options was about 115.67 trln rupees compared with 54.19 trln rupees in the previous session amid the expiry of weekly derivatives contracts today. The total premium turnover of index and stock options was 328.37 bln rupees compared with 299.20 bln rupees Wednesday.

Wipro, Infosys, Indian Railway Catering and Tourism Corp, ITC, Tata Motors, Mindtree, HDFC Bank, Adani Enterprises, Tata Power Co, Adani Ports and Special Economic Zone, HCL Technologies, Tata Consultancy Services, Tata Steel, State Bank of India and ICICI Bank were the most actively traded stocks today.  End

Edited by Aditya Sakorkar

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