Nifty extended its downward trade for third consecutive session and ended below its crucial 17800 mark. Market made negative start, as rating agency Icra said while there is some evidence of the economic recovery becoming broad-based in the third quarter of fiscal 2022; it is yet to attain the durability being sought by the Monetary Policy Committee (MPC) as a precursor to policy transmission. The agency expects the real GDP to expand 6-6.5 per cent year-on-year in the third quarter of FY2022 (+8.4 per cent in Q2 FY2022). Further, market added more losses, as traders were cautious with the UN trade body said that Foreign Direct Investment (FDI) flows to India in 2021 were 26 per cent lower, mainly because large M&A deals recorded in 2020 were not repeated.
However, in last leg of trade market trimmed some of its losses as some solace came as Reserve Bank of India’s (RBI) digital payments index (DPI), which was launched in January 2021 to indicate the extent of digitisation of payments across the country, shows that the index for September 2021 stood at 304.06 against 270.59 in March. This indicates the rapid adoption and deepening of digital payments across the country.
Most of the sectoral indices ended in red except Metal. The top gainers from the F&O segment were Cholamandalam Investment, Power Grid Corporation and Deepak Nitrite. On the other hand, the top losers were Bajaj Finserv, Tata Communications and Oracle Financial Services Software. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -17200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 0.15% and reached 17.79. The 50 share Nifty down by 181.40 points or 1.01% to settle at 17,757.00.
Nifty January 2022 futures closed at 17808.00 (LTP) on Thursday, at a premium of 51.00 points over spot closing of 17757.00, while Nifty February 2022 futures ended at 17860.00 (LTP), at a premium of 103.00 points over spot closing. Nifty January futures saw a contraction of 401 units, taking the total open interest (Contracts) to 1,83,949 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 discount of 0.95 points at 1824.25 (LTP) compared with spot closing of 1825.20. The numbers of contracts traded were 33,743(Provisional).
Reliance Industries January 2022 futures traded at a premium of 10.60 points at 2492.70 (LTP) compared with spot closing of 2482.10. The numbers of contracts traded were 33,587 (Provisional).
Asian Paints January 2022 futures traded at a premium of 10.00 points at 3313.00 (LTP) compared with spot closing of 3303.00. The numbers of contracts traded were 28,050 (Provisional).
TCS January 2022 futures traded at a premium of 9.90 points at 3843.05 (LTP) compared with spot closing of 3833.15. The numbers of contracts traded were 24,745 (Provisional).
Tata Steel January 2022 futures traded at a premium of 5.10 points at 1215.00 (LTP) compared with spot closing of 1209.90. The numbers of contracts traded were 23,368 (Provisional).
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with an addition of 90,494 units open interests. Among Nifty puts, 17600 SP from the January month expiry was the most active put with an addition of 15,722 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,53,342 units) and that for Puts was at 17000 SP (80,162 units). The respective Support and Resistance levels of Nifty are: Resistance 17,917.65 -- Pivot Point 17,783.05 -- Support -- 17,622.40.
The Nifty Put Call Ratio (PCR) finally stood at (0.76) for January month contract. The top five scrips with highest PCR on PVR (1.14), Indigo (1.12), Escorts (0.94), Indian Hotels Company (0.86) and Cholamandalam Investment (0.82).
Among most active underlying, ICICI Bank witnessed an addition of 2,315 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 7,139 units of Open Interest in the January month futures contract, Bajaj Finance witnessed an addition of 108 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 4,788 units of Open Interest in the January month futures contract and Tata Power witnessed an addition of 111 units of Open Interest in the January month futures contract (provisional).
