Indian stock market has witnessed sharp swings in the last few trading sessions amid fall in global markets. The Yen carry trade; fears of a recession in the US and rising geo-political crisis have put the bulls on the back foot.
The Sensex and the Nifty dipped close to 4 per cent in the last three trading sessions. The futures & options data from the NSE (National Stock Exchange) shows that the Nifty August futures have declined by 3.8 per cent, while the Bank Nifty futures slipped 3.7 per cent.
The fall in Nifty futures is alongside a 12.7 per cent decrease in the open interest. This is mainly on account of unwinding by foreign investors who held up to 2 lots in index futures as longs for every bet on the short side.
On the other hand, the Bank Nifty paints a slightly tepid picture, as the open interest (OI) as risen by 27 per cent in the last four trading sessions; suggesting a possibility of short buildup in the August contract.
Meanwhile, here are 4 futures & options stock where shorts seem to have buildup in the last four sessions.
JK Cement
Current Price: Rs 4,313
Support: Rs 4,175; Rs 4,075; Rs 4,025
Resistance: Rs 4,375; Rs 4,475; Rs 4,500
JK Cement had dipped 5.3 per cent as of August 06, alongside an 11 per cent rise in open interest. The stock, however, has gained 2 per cent in trades on Wednesday.
Technically, the stock seems to have bounced back after testing support around its 100-DMA (Daily Moving Average), which stands at Rs 4,175. On its way up the stock is expected to face resistance around the 20-DMA at Rs 4,375; above which the stock can spurt to Rs 4,475 and Rs 4,500 levels.
On the flip side, in case, the 100-DMA support is violated, the stock can slip to Rs 4,075 – Rs 4,025 levels.
The stock is thinly traded in the options segment, with notable OI seen at Rs 4,500 and Rs 4,400 Strike Calls; and Rs 4,200 and Rs 4,000 Strike Puts.
LIC Housing Finance
Current Price: Rs 670
Support: Rs 617
Resistance: Rs 686; Rs 735
LIC Housing Finance stock has plunged 18 per cent in the last eight trading sessions. A major part of the fall, i.e. over 15 per cent has in the come in the last four sessions post July F&O expiry; wherein the OI has jumped by almost 15 per cent.
Technically, LIC Housing seems on course to test the 200-DMA on the daily scale at Rs 763. The near-term bias is likely to remain weak as long as the stock trades below Rs 670. In case of a pullback, the 100-DMA at Rs 686 followed by the 50-DMA at Rs 735 are likely to act as stiff hurdles.
The options data shows a PCR (Put Call Ratio) reading of 0.44; indicating presence of higher OI in Calls versus Puts. The highest OI in Calls is visible at Rs 800 Strike Price followed by Rs 700 and Rs 680. Highest OI in Puts is seen at Rs 650 Strike followed by Rs 680 and Rs 660.
Marico
Current Price: Rs 642
Support: Rs 633; Rs 585
Resistance: Rs 664
Marico has shed 7.3 per cent accompanied with a near 13 per cent rise in OI. The stock seems to be making an attempt to hold on the 50-DMA support on the daily scale at Rs 638. As long as this support is held, the stock can bounce back to Rs 664 levels. On the flip side, break and sustained trade below Rs 633, can trigger a fall towards Rs 585 levels.
Marico PCR stands at 0.5; which implies that for every 1 Put open positions; there were 2 open positions in the Calls. Highest OI in Calls is seen at Rs 700 Strike followed by Rs 680. On the other hand, highest OI in Puts is at Rs 630 and Rs 620 Strikes.
Motherson Sumi
Current Price: Rs 178
Support: Rs 177; Rs 154
Resistance: Rs 183; Rs 203
Motherson Sumi stock has plunged over 11 per cent in the four days on the back of near 13 per cent rise in OI. The stock is seen trading below its 20- and 50-DMA for the third straight day. Break and sustained trade below Rs 177 can trigger a fall towards the 100-DMA, which stands at Rs 154. On the upside, the stock is expected to face resistance around Rs 183 and Rs 203.
The PCR stands at 0.9; suggesting near about balance between open Calls and Puts position. The highest OI among Calls is visible at Rs 200 and Rs 210 Strikes; In case of Puts, highest OI is seen at Rs 170 and Rs 160 Strikes.
First Published: Aug 07 2024 | 12:49 PM IST
