Power Grid Corp Futures See Decline Ahead of May Expiry

Power Grid Corp faced a significant decline in its stock price as it approached the expiry of its May 2024 futures. On May 23, 2024 the stock closed at ₹316.65 marking a drop of 2.90% or ₹9.45 from its previous close of ₹326.10. The trading session saw the stock’s price range between a high of ₹320.80 and a low of ₹308.90 indicating volatility as traders positioned themselves ahead of the futures contract’s expiration.

Trading Activity and Open Interest

The open interest for Power Grid Corp futures experienced a notable decrease dropping by 6.52% to 52,812,000. This decline in open interest combined with a high volume of contracts traded (11,621 contracts) suggests that traders were closing out their positions ahead of the expiry. The turnover for the day stood at ₹131,284.30 lakhs reflecting active trading in the stock.

Key Metrics:

  1. Open Price: ₹319.00
  2. High Price: ₹320.80
  3. Low Price: ₹308.90
  4. Spot Price: ₹319.90
  5. Rollover Percentage: 14.03%
  6. Bid Price: ₹316.60
  7. Offer Price: ₹316.70
  8. Average Price: ₹313.81

Options Chain Analysis

The options market for Power Grid Corp also saw significant activity. The most active call option was the 320.00 strike with a volume of 23,655,600 contracts priced at ₹3.60. On the put side the 310.00 strike was the most traded with a volume of 20,278,800 contracts and a price of ₹2.95. This indicates a substantial interest in both calls and puts around the 310.00 to 320.00 strike range reflecting trader sentiment on the stock’s near-term movement.

Most Active Call Options:

  • 320.00 Strike: ₹3.60 with 23,655,600 contracts
  • 330.00 Strike: ₹1.40 with 17,748,000 contracts
  • 315.00 Strike: ₹6.05 with 16,830,000 contracts
  • 310.00 Strike: ₹9.60 with 12,891,600 contracts
  • 325.00 Strike: ₹2.30 with 12,736,800 contracts

Most Active Put Options:

  • 310.00 Strike: ₹2.95 with 20,278,800 contracts
  • 300.00 Strike: ₹1.25 with 18,615,600 contracts
  • 315.00 Strike: ₹4.55 with 11,278,800 contracts
  • 320.00 Strike: ₹7.10 with 6,739,200 contracts
  • 305.00 Strike: ₹1.95 with 6,098,400 contracts

Change in Open Interest and Volumes

The overall open interest in futures decreased by 6.52%, with a notable shift in the options market. The total call open interest decreased by 0.92% while the put open interest increased by 3.82% indicating a bearish sentiment as more traders were buying puts than calls.

Also Read – S&P BSE 100 Inches Higher as Investors Rotate into Cyclical Stocks

Change in Open Interest:

  • Futures: 52,812,000 (-6.52%)
  • Calls: 39,639,600 (-0.92%)
  • Puts: 24,746,400 (+3.82%)

Change in Volumes:

  • Futures: 41,835,600 (+91.58%)
  • Calls: 144,964,800 (+52.49%)
  • Puts: 90,410,400 (+118.36%)

Fundamental Overview

Power Grid Corp maintains a strong market capitalization of ₹297,526.32 crore. Its earnings per share (EPS) for the trailing twelve months (TTM) is ₹16.73 and it holds a price-to-earnings (P/E) ratio of 19.12. The company offers a high dividend yield of 5.86% with a dividend percentage of 187.50%.

Key Financial Metrics:

  • Market Cap: ₹297,526.32 crore
  • EPS (TTM): ₹16.73
  • P/E Ratio: 19.12
  • Price/Book Ratio: 3.59
  • Dividend Yield: 5.86%

Market Sentiment and Outlook

The decline in Power Grid Corp’s stock and the shift in open interest highlight the cautious approach traders are taking as the futures contract nears expiry. The increased activity in put options and the decrease in call options suggest a bearish outlook among market participants.

With the May 2024 futures contract nearing its expiration traders will closely monitor any further developments that could impact the stock’s performance. The fundamentals of Power Grid Corp remain robust but market sentiment and short-term technical factors are driving the current volatility.

This article provides an overview of the recent trading activity and market sentiment for Power Grid Corp, focusing on its futures and options trading as the May 2024 contract approaches expiry.

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