Nifty ended volatile trading session in green zone on Thursday. Broader markets strengthened, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.6 percent each. Market made cautious start, as weak macroeconomic data. With the waning low base effect, India’s industrial production growth remained subdued for the third straight month and expanded by 1.4 per cent in November. The IIP had contracted by 1.6 per cent in November 2020. Besides, with rising prices of essential kitchen items, the India’s retail inflation jumped to a six-month high of 5.59 per cent in December 2021, close to the Reserve Bank of India’s (RBI’s) upper tolerance limit of 6 per cent. Further, market turned volatile for remaining part of day after a private report revised downwards its India's growth forecast for the current financial year to 9.1 per cent from 9.5 per cent earlier, citing the massive surge in Omicron infections and the resultant impact on overall economic activities in the March quarter.
However, Nifty managed to end the session on green terrain as trades took some support as World Bank predicted that the Narendra Modi government's Production-Linked Incentive (PLI) Scheme will help India's economy develop at an annual rate of 8.7% in fiscal year 2022-23, outpacing emerging market counterparts such as China. Finally, Nifty finished the session above 18250 mark.
Most of the sectoral indices ended in green except Bank, Realty and Financial Services. The top gainers from the F&O segment were Polycab India, Tata Steel and Jindal Steel & Power. On the other hand, the top losers were Asian Paints, Oberoi Realty and Wipro. In the index option segment, maximum OI continues to be seen in the 18300 -18600 calls and 17400 -17700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.77% and reached 16.71. The 50 share Nifty up by 45.45 points or 0.25% to settle at 18,257.80.
Nifty January 2022 futures closed at 18289.60 (LTP) on Thursday, at a premium of 31.80 points over spot closing of 18257.80, while Nifty February 2022 futures ended at 18335.00 (LTP), at a premium of 77.20 points over spot closing. Nifty January futures saw an addition of 7,920 units, taking the total outstanding open interest (OI) to 2,08,157 units. The near month derivatives contract will expire on January 27, 2022 (Provisional).
From the most active contracts, Infosys January 2022 futures traded at a premium of 0.70 points at 1896.00 (LTP) compared with spot closing of 1895.30. The numbers of contracts traded were 73,088 (Provisional).
Tata Steel January 2022 futures traded at a premium of 5.35 points at 1224.35 (LTP) compared with spot closing of 1219.00. The numbers of contracts traded were 51,981 (Provisional).
TCS January 2022 futures traded at a discount of 1.10 points at 3896.90 (LTP) compared with spot closing of 3898.00. The numbers of contracts traded were 46,651 (Provisional).
Wipro January 2022 futures traded at a premium of 1.60 points at 651.65 (LTP) compared with spot closing of 650.05. The numbers of contracts traded were 46,643 (Provisional).
HDFC Bank January 2022 futures traded at a premium of 6.50 points at 1535.50 (LTP) compared with spot closing of 1529.00. The numbers of contracts traded were 37,322 (Provisional).
Among, Nifty calls, 18300 SP from the January month expiry was the most active call with an addition of 7,627 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 12,992 units open interests. The maximum OI outstanding for Calls was at 18500 SP (34,484 units) and that for Puts was at 17500 SP (57,441 units). The respective Support and Resistance levels of Nifty are: Resistance 18,298.77 -- Pivot Point 18,231.28 -- Support -- 18,190.32.
The Nifty Put Call Ratio (PCR) finally stood at (1.66) for January month contract. The top five scrips with highest PCR on PVR (1.37), Indigo (1.17), Indian Hotels Company (1.13), AU Small Finance Bank (1.09) and Bandhan Bank (0.93).
Among most active underlying, Infosys witnessed a contraction of 2,608 units of Open Interest in the January month futures contract, HDFC Bank witnessed an addition of 11,987 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 815 units of Open Interest in the January month futures contract, TCS witnessed an addition of 2,326 units of Open Interest in the January month futures contract and Tata Steel witnessed an addition of 3,297 units of Open Interest in the January month futures contract (Provisional).
