Indian equity benchmark -- Nifty -- ended with strong gains on Wednesday. The start of the trading session was on a positive note, as the World Bank retained its FY22 growth forecast for India at 8.3 per cent but upgraded it to 8.7 per cent for FY23, from 7.5 per cent estimated earlier, citing improving growth prospects, especially a reviving private capex cycle. Adding more optimism, former chief economic adviser Arvind Virmani said the Indian economy is likely to register a growth of 9.5 per cent in this financial year.
Markets maintained gaining rally till the end of the trading session, as preliminary data from the commerce ministry showed that the country's exports grew 33.16 per cent to $7.63 billion during January 1-7 period on account of healthy performance by various sectors, including engineering, petroleum and gems and jewellery. Sentiments remained positive, as the government extended till March 15 the deadline for corporates to file Income Tax returns for the fiscal ended March 2021. The deadline to file tax audit report and transfer pricing audit report for 2020-21 fiscal too has been extended till February 15.
All sectoral indices ended in green except Pharma. The top gainers from the F&O segment were Adani Enterprises, AU Small Finance Bank and Motherson Sumi Systems. On the other hand, the top losers were Jindal Steel & Power, LTTS and Ipca Laboratories. In the index option segment, maximum OI continues to be seen in the 18300 -18600 calls and 16900 -17100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.23% and reached 17.18. The 50 share Nifty up by 156.60 points or 0.87% to settle at 18,212.35.
Nifty January 2022 futures closed at 18227.00 (LTP) on Wednesday, at a premium of 14.65 points over spot closing of 18212.35, while Nifty February 2022 futures ended at 18274.80, at a premium of 62.45 points over spot closing. Nifty January futures saw a contraction of 403 units, taking the total open interest (OI) to 2,05,086 units. The near month derivatives contract will expire on January 27, 2022 (Provisional).
From the most active contracts, Reliance Industries January 2022 futures traded at a premium of 3.25 points at 2521.25 (LTP) compared with spot closing of 2518.00. The numbers of contracts traded were 48,169 (Provisional).
Infosys January 2022 futures traded at a premium of 5.55 points at 1881.35 (LTP) compared with spot closing of 1875.80. The numbers of contracts traded were 37,821 (Provisional).
Wipro January 2022 futures traded at a premium of 0.90 points at 691.90 (LTP) compared with spot closing of 691.00. The numbers of contracts traded were 29,413 (Provisional).
TCS January 2022 futures traded at a discount of 4.95 points at 3852.05 (LTP) compared with spot closing of 3857.00. The numbers of contracts traded were 27,655 (Provisional).
Bharti Airtel January 2022 futures traded at a premium of 2.80 points at 731.95 (LTP) compared with spot closing of 729.15. The numbers of contracts traded were 26,225 (Provisional).
Among, Nifty calls, 18500 SP from the January month expiry was the most active call with an addition of 15,517 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 29,622 units open interests. The maximum OI outstanding for Calls was at 18500 SP (36,019 units) and that for Puts was at 17000 SP (71,550 units). The respective Support and Resistance levels of Nifty are: Resistance 18,250.60 -- Pivot Point 18,189.70 -- Support -- 18,151.45.
The Nifty Put Call Ratio (PCR) finally stood at (1.65) for January month contract. The top five scrips with highest PCR on PVR (1.44), Indian Hotels Company (1.13), Indigo (1.04) and AU Small Finance Bank (1.03).
Among most active underlying, Reliance Industries witnessed an addition of 278 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 29,562 units of Open Interest in the January month futures contract, ICICI Bank witnessed a contraction of 5,319 units of Open Interest in the January month futures contract, HDFC Bank witnessed a contraction of 45 units of Open Interest in the January month futures contract and Bharti Airtel witnessed a contraction of 6,019 units of Open Interest in the January month futures contract (Provisional).
