Turnaround Tuesday for markets: IT stocks outperform; Sarda Energy receives consent to operate, jumps 5 per cent

It has been a turnaround Tuesday for the Indian benchmark indices with Nifty reclaiming its important psychological level of 15,000 while Sensex is up by more than 300 points, reclaiming its level of 50,700.  

The broader markets too traded in green; however, they are seen relatively underperforming the frontline gauges. The showstopper of the day has been the IT stocks and testimony of this is that three stocks out of the top five contributors of the index are from the IT sector with Infosys & TCS leading the charge. Both the stocks have contributed roughly about 34 points to the index.   

What does option analysis of March 18 series suggest for Nifty? Nifty 15,000 put options have seen an open addition of around 11.8 lakh shares. With this, the total open interest in the 15,000 put option strike has crossed 27 lakh shares and this is where the maximum highest open interest is seen on the put side. At the same, the 15,000-call option has seen the addition of nearly 6.2 lakh shares while the total open interest in 15,000 call options stands at 31.2 lakh shares. On the call side, the strike of 15,200 and 15,700 have also seen the addition of more than 6 lakh shares in the open interest, and the maximum concentration of open interest on the call option side is seen at 15,200 strikes.   

The straddle of 15,000 on the index is costing about Rs 224. So, one can expect the index to be in a broad range of 14,800-15,200 as per the current data analysis.   

On the stock futures’ front, there have been 68 advancers and 74 declines in stocks futures. Long built-up is seen in Mphasis, LTI, Trent, Ambuja Cements, Interglobe Aviation (IndiGo), etc. While, short built-up is witnessed in Ramco Cements, Voltas, Havells, Cummins India, Apollo Tyres, etc.   

Talking about stock-specific action: Sarda Energy is up by nearly 5 per cent and it is trading near the day’s high as the company has received ‘consent to operate’ the enhanced capacity of its iron ore pellet plant from existing 6,00,000 MTs p.a. to 8,00,000 MTs p.a. with immediate effect from Chhattisgarh Environment Conservation Board (Raipur). Another stock, which is seen buzzing on bourses, is Royal Orchid Hotels. The stock zoomed 4 per cent after announcing the launch of eight new properties.   

Meanwhile, the stock of Larsen & Toubro is trading down by 1 per cent despite the fact that its construction arm has secured orders from its prestigious client for two businesses.