After spending most of the time in green zone, Nifty ended Friday’s session in red dragged by financials and auto stocks. Maruti Suzuki was the top loser down by above 3% followed by Tech Mahindra, Power Grid Corporation of India and ICICI Bank. Market made optimistic start, as commerce and industry ministry said India’s electronic goods exports grew 49% in April-December 2021 at $11 billion over $7.4 billion during same period last year with the US and the UAE being the top two destinations. Market extended its gains to trade higher after former RBI Governor D Subbarao said that the upcoming Budget should focus on creating jobs and bridging the widened inequality in the economy besides accelerating growth, while observing that given the continuing need to raise spending on education, health, and infrastructure, there is not much leeway for tax cuts. Traders also took support after Deputy Governor Michael Patra stated that Reserve Bank of India (RBI) remains committed to revive and sustain growth and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within target. However, in last leg of trade, index trimmed most of its gains and slipped into negative territory.
Most of the sectoral indices ended in green except Bank, Auto and Financial Services. The top gainers from the F&O segment were LIC Housing Finance, Can Fin Homes and Laurus Labs. On the other hand, the top losers were RBL Bank, TVS Motor and Chambal Fertilisers & Chemicals. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16300 -16700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.75% and reached 20.70. The 50 share Nifty down by 8.20 points or 0.04% to settle at 17,101.95.
Nifty February 2022 futures closed at 17367.00 (LTP) on Friday, at a premium of 265.05 points over spot closing of 17101.95, while Nifty March 2022 futures ended at 17425.15 (LTP), at a premium of 323.20 points over spot closing. Nifty February futures saw an addition of 3,995 units, taking the total outstanding open interest (contracts) to 2,09,363 units. The near month derivatives contract will expire on February 24, 2022 (Provisional).
From the most active contracts, Bharti Airtel February 2022 futures traded at a premium of 1.35 points at 718.35 (LTP) compared with spot closing of 717.00. The numbers of contracts traded were 30,393 (Provisional).
Infosys February 2022 futures traded at a premium of 28.70 points at 1714.50 (LTP) compared with spot closing of 1685.80. The numbers of contracts traded were 22,298 (Provisional).
Reliance Industries February 2022 futures traded at a premium of 20.00 points at 2356.00 (LTP) compared with spot closing of 2336.00. The numbers of contracts traded were 18,705 (Provisional).
Tata Steel February 2022 futures traded at a premium of 30.80 points at 1116.80 (LTP) compared with spot closing of 1086.00. The numbers of contracts traded were 15,694 (Provisional).
Wipro February 2022 futures traded at a premium of 10.60 points at 562.60 (LTP) compared with spot closing of 552.00. The numbers of contracts traded were 15,691 (Provisional).
Among, Nifty calls, 17500 SP from the February month expiry was the most active call with a contraction of 394 units open interests. Among Nifty puts, 17000 SP from the February month expiry was the most active put with an addition of 1,722 units open interests. The maximum OI outstanding for Calls was at 18000 SP (34,881 units) and that for Puts was at 16500 SP (72,550 units). The respective Support and Resistance levels of Nifty are: Resistance 17,291.27 -- Pivot Point 17,184.18 -- Support -- 16,994.87.
The Nifty Put Call Ratio (PCR) finally stood at (1.55) for February month contract. The top five scrips with highest PCR on JK Cement (2.25), Piramal Enterprises (1.26), ZEEL (1.06), Dalmia Bharat (1.02) and Alembic Pharmaceuticals (0.99).
Among most active underlying, Bharti Airtel witnessed an addition of 4,147 units of Open Interest in the February month futures contract, Tata Motors witnessed an addition of 626 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 2,201 units of Open Interest in the February month futures contract, Infosys witnessed an addition of 5,819 units of Open Interest in the February month futures contract and Reliance Industries witnessed an addition of 3,206 units of Open Interest in the February month futures contract (provisional).
