Nifty halted 5 day losing run on Tuesday and ended the session with the gains of above half a percent. Stocks of Axis Bank, State Bank of India and Maruti Suzuki contributed the most to the gain. Market made negative start with report that Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 3,751.58 crore on Monday, exchange data showed. Further, index added more losses, as in the adverse case, ICRA projects fiscal deficit at a higher Rs 17.9 trillion, driven by the two major outlays intended to bolster confidence amongst households, namely free food grains under the PMGKAY scheme and an enhanced outgo for MGNREGA.
However, in late afternoon session, market wiped out all its losses to turn positive, as traders found support with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that the Indian economy has recovered 'handsomely' from the pandemic-induced disruptions, while expressing hope that the recovery will be sustained and the growth rate of 7 to 8 per cent will be restored. Finally, Nifty ended the session above 17250 mark.
Most of the sectoral indices ended in green except IT. The top gainers from the F&O segment were Maruti Suzuki India, ZEEL and Axis Bank. On the other hand, the top losers were Ramco Cements, Deepak Nitrite and Indiamart Intermesh. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 15900 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 6.42% and reached 21.36. The 50 share Nifty up by 128.85 points or 0.75% to settle at 17,277.95.
Nifty January 2022 futures closed at 17263.05 (LTP) on Tuesday, at a discount of 14.90 points over spot closing of 17277.95, while Nifty February 2022 futures ended at 17304.95 (LTP), at a premium of 27.00 points over spot closing. Nifty January futures saw a contraction of 3,474 units, taking the total outstanding open interest (contracts) to 1,48,012 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 discount of 0.10 points at 2368.00 (LTP) compared with spot closing of 2368.10. The numbers of contracts traded were 63,110 (Provisional).
Infosys January 2022 futures traded at a discount of 1.95 points at 1720.00 (LTP) compared with spot closing of 1721.95. The numbers of contracts traded were 44,875 (Provisional).
Axis Bank January 2022 futures traded at a discount of 2.30 points at 748.25 (LTP) compared with spot closing of 750.55. The numbers of contracts traded were 37,815 (Provisional).
ICICI Bank January 2022 futures traded at a discount of 0.15 points at 800.35 (LTP) compared with spot closing of 800.50. The numbers of contracts traded were 37,285 (Provisional).
SBIN January 2022 futures traded at a premium of 0.30 points at 513.65 (LTP) compared with spot closing of 513.35. The numbers of contracts traded were 34,498 (Provisional).
Among, Nifty calls, 17500 SP from the January month expiry was the most active call with a contraction of 22,323 units open interests. Among Nifty puts, 17000 SP from the January month expiry was the most active put with an addition of 20,417 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,73,191 units) and that for Puts was at 16000 SP (1,20,903 units). The respective Support and Resistance levels of Nifty are: Resistance 17,445.80 -- Pivot Point 17,141.30 -- Support -- 16,973.45.
The Nifty Put Call Ratio (PCR) finally stood at (0.71) for January month contract. The top five scrips with highest PCR on Bandhan Bank (1.30), PVR (1.24), Maruti Suzuki India (1.01), Escorts (0.99) and Bank of Baroda (0.97).
Among most active underlying, ICICI Bank witnessed an addition of 19,199 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 40,553 units of Open Interest in the January month futures contract, Axis Bank witnessed an addition of 11,787 units of Open Interest in the January month futures contract, SBIN witnessed an addition of 18,460 units of Open Interest in the January month futures contract and Tata Motors witnessed an addition of 1,761 units of Open Interest in the January month futures contract (provisional).
