MC Inside Edge: Retail options traders uneasy, telecom tale picking up speed, Exide bulls make a stealthy departure, and Angel's issue of plenty

MC Inside Edge: Retail options traders uneasy, telecom tale picking up speed, Exide bulls make a stealthy departure, and Angel's issue of plenty

Learn about the stocks that seasoned bulls are pursuing, the bears' strategies, significant transactions, and all the behind-the-scenes activities from Dalal Street.

In the lead-up to the general elections, the market outlook has become more cautious.

Moving forward with force

The current price seems to imply that bulls in Exide are still exhibiting no signs of exhaustion. However, data from derivatives indicates that bulls are closing down their bets. After enjoying healthy profits, HNIs and those in their social circles have reduced their holdings, and they are finding plenty of regular investors to offload their shares to. On the other hand, it is known that domestic fund managers are hesitant to purchase the stock at greater prices. The most astute, wealthy investors are placing bets that the stock may not hold up at these higher levels. This might account for the gradual increase in short positions to over 2.2 million shares during the NSE's securities lending and borrowing window.

Making telecom calls

Wealthy private investors have developed an interest in one industry even as the market outlook has become cautious ahead of the upcoming elections. It's possible that the Vodafone FPO had some influence on the shift in opinion. This is the case even if opinions on Wall Street differ over whether Vodafone's most recent round of fundraising would significantly improve the company's financial situation. The telecom industry's bull case basically states that the government is hesitant to permit a duopoly in the industry. By extension, it must guarantee Vodafone's continued existence. There is also talk that telecom rates would probably increase shortly after the election. Every player stands to gain if it occurs.

Keeping an eye on the possibilities

The options market is nervous ahead of this Thursday's Nifty expiration due to the abrupt reversal in benchmark indexes last Thursday. This is also because the contracts for the weekly and monthly options both expire on that day. On Monday, there was a lot of action in the Nifty 22300 call options. Currently, the Nifty's highest pain point is 22,300, which indicates that the greatest amount of option purchasers would experience a loss of capital if the Nifty closes at that level on Thursday. Consequently, most option writers have the biggest opportunity to profit at that level.

The dilemma of dividends

Although Angel One's profits for the March quarter were record, the stock is still much behind its January high. Additionally, the business has just increased its dividend distribution. Fund managers and high net worth individuals (HNIs) ought to have been snapping up the shares, especially considering Angel's impressive operational results and the bright outlook on the stock market. The diarist finds out that the Street is not a big fan of Angel's choice to raise money via a QIP. Its dividend payment hike is another indication that there aren't many options for where to put money. Given this, one may wonder why the corporation pursued stock dilution as a means of obtaining funds. As they say, power comes with responsibility. Additionally, there is pressure to use additional money wisely in order to preserve return ratios.