March 1, 2023

Paint makers buck the market trend

Blog | F&O

Good morning!☕🗞️

Keep your finger on the pulse with today's options setup and F&O headline makers.

Options setup (Expiry: 2 March)

Nifty50 Max Call OI	17,400
Nifty50 Max Put OI	17,000
Max Pain	17,400
PCR	0.65

Bank Nifty Max Call OI	40,500
Bank Nifty Max Put OI	40,000
Max Pain	40,200
PCR	0.86

⭐Paint companies shine in a subdued market
Asian Paints: 2,832 ▲82 (+3.0%)
Berger Paints: 582 ▲25 (+4.5%)

Shares of Asian Paints and Berger Paints gained more than 3% on Tuesday. The OI of Asian Paints March futures contract rose 0.1%, indicating a long build-up. Meanwhile, the call option OI on the 2,840 and 2,860 contracts rose 0.2% and 10%, respectively. This comes after the CEO of Berger Paints said that rural demand has revived and they expect Q4 volume & value growth to be in double digits. He added that the impact of the decline in crude oil prices will be fully reflected in the gross margin in Q4 of FY23.

⭐Vedanta tumbles 6%
268 ▼19 (-6.6%)

Metal mining major plunged more than 6% on Tuesday, while the OI of its March futures contract rose 18%, indicating a short build-up. This comes after reports suggested that the government opposed Vedanta's proposal to sell its international zinc business to Hindustan Zinc for $2.98 billion over valuation concerns. The opposition comes at a time when the promoter Anil Agarwal plans to trim down the mining giant's $7.7 billion net debt.

⭐Cipla falls on USFDA observations
905 ▼44 (-4.6%)

Shares of Cipla fell sharply on Tuesday, while the OI of its March futures contract rose 23%, indicating a short build-up. The USFDA flagged quality and procedural lapses at the company’s Pithampur facility. The drug regulator inspected the facility between 6th February to 17th February and issued eight inspectional observations in Form 483.

Disclaimer:

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