Benchmark indices trade near days high; Adani Enterprises 1200-call option jumps 100 per cent

Update: The Indian benchmark indices were trading near the highest point of the day with Nifty reclaiming its important psychological mark of 14,850 while Sensex trading close to the 50,000 mark. The majority of the sectoral indices were trading in green with Nifty Metal leading from the front as it has surged 4.3 per cent, followed by Nifty PSU Bank.   

The top gainers in F&O Securities are National Aluminium, Adani Enterprises and JSW Steel. Adani Enterprises is up by 7.3 per cent while its 1200-call option has jumped 100 per cent with a surge of 60 per cent in the open interest.   

On the call option side, there was maximum addition of open interest witnessed in 14,800 strike earlier in the day and now, the maximum open interest addition has shifted higher towards 14,900 call option strike.   

Global cues: Nasdaq Futures is up by 0.85 per cent while Dow Jones Futures is up by 0.10 per cent. Meanwhile, the US 10-year bond yield cooled off by 1.61 per cent, quoting around 1.71.   

Update: After having started the first trading session of FY22 on a jubilant note, the key benchmark indices have trimmed bulk of their gains and were seen trading flat with Sensex just above the 49,500 mark and Nifty holding above 14,700 mark.   

The market breadth favoured advances with an advance-decline ratio of 4:1. This is due to the fact that broader markets outpaced the frontline indices with Nifty Midcap 100 and Nifty Smallcap 100 inching higher by 0.57 per cent and 1.42 per cent, respectively.   

The maximum concentration of open interest on the call side stands at 15,000 Call option of the current week series i.e., April 1, 2021 expiry; however, maximum open interest addition has been witnessed in the 14,800 Call option. As a result, we expect 14,800 to act as a strong barrier for the index. On the other hand, 14,700 Put option has seen maximum addition of open interest in today’s session. So, the range of 14,700-14,800 is crucial for the index.   

Maruti Suzuki India posted total sales of 1,67,014 units in March 2021, consisting of domestic sales (passenger vehicle and light commercial vehicle) of 1,49,518 units, sales to other OEMs of 5,899 units and exports of 11,597 units.   

Welspun India has surged nearly 2.75 per cent after the company prepaid term loans of Rs 374.27 crore as of March 31, 2021, along with other installments, which were due as on the year-end on a standalone basis.  

Just when the bulls surged about 3.6 per cent in the last two trading sessions like there’s no stopping, the bears played April Fool's trick by trapping the bulls and had the last laugh. As on Wednesday, Nifty opened with a gap down and remained under pressure throughout the day. In the end, Nifty gave away half of the gains of the prior session and ended below the 14,700 levels.   

The big boys of D-Street led the collapse. HDFC twins collectively dragged the index lower by 100 points, followed by Reliance Industries, which contributed nearly 20 points to the fall. Despite the sea of red witnessed on the D-Street on the final trading session of the fiscal year 2020-21, the entire fiscal year proved to be one of the best years for investors as Nifty recorded gains of 72.66 per cent. In the fiscal year 2020-21, the top three performers from Nifty 50 were Tata Motors, Hindalco, and JSW Steel while on the other hand, Eicher Motors and Coal India were the top losers.   

The price action of the day has formed a bearish candle, which stayed within the high and low range of the previous bar. As a result, this led to the formation of an inside bar. In technical parlance, it is known as a bearish Harami pattern.   

The index failed to move above March 23 swing high and at the same time, it failed to sustain above the 20 and 50-DMA, which was reclaimed in the prior session. Lack of follow-through to Tuesday’s strong price action is justifying the fact that the index is still in a sideways consolidation zone. The index in the last 8-9 trading sessions is trading in the range of 14,264-14,878 and only a decisive breakout and breakdown of this range would result in a trending move in the index. Till then, we are likely to see erratic swings in this consolidation phase.   

Immediate support for the index is seen around the gap area (14,572.90-14,617.60) of March 30. On the upside, the 50-DMA, which is placed around 14,775 is likely to act as a resistance point.