Nifty gave power pack performance on Monday ahead of upcoming Union Budget, to be presented by the Finance Minister in Parliament on February 1, 2022. Buying in all the sectoral indices helped the market to end the session with gains of above a percent. Market made positive start, as RBI data showed bank credit grew 8.01 per cent to Rs 115 lakh crore and deposits rose 9.28 per cent to Rs 159.83 lakh crore in the fortnight ended January 14. Further, market added more gains with a survey by industry body Ficci showing a sharp improvement in manufacturing outlook in Q3 (October-December 2021-22) after some revival in the first half of 2021-22.
Market continued the gaining momentum as India's economic growth is expected to remain in the range of 8 to 8.5 per cent in 2022-23 as against a projected growth of 9.2 per cent in the current financial year and a sharp contraction witnessed in 2020-21, according to the Economic Survey 2021-22 tabled in the parliament. Besides, Government consumption is estimated to grow by a strong 7.6 percent surpassing pre-pandemic levels. Private consumption is also estimated to have improved significantly to recover 97 percent of corresponding pre-pandemic output level. This is supported by a sharp rebound in HFIs like IIP Consumer Durables. Finally, Nifty finished wonderful day of trade above its 17300 mark.
All the sectoral indices ended in green. The top gainers from the F&O segment were Info Edge (India), MindTree and Birlasoft. On the other hand, the top losers were Kotak Mahindra Bank, Indusind Bank and Atul. 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 increased by 6.07% and reached 21.95. The 50 share Nifty up by 237.90 points or 1.39% to settle at 17,339.85.
Nifty February 2022 futures closed at 17367.75 (LTP) on Monday, at a premium of 27.90 points over spot closing of 17339.85, while Nifty March 2022 futures ended at 17426.00 (LTP), at a premium of 86.15 points over spot closing. Nifty February futures saw a contraction of 14,541 units, taking the total open interest (Contracts) to 1,96,810 units. The near month derivatives contract will expire on February 24, 2022 (Provisional).
From the most active contracts, Reliance Industries February 2022 futures traded at a premium of 8.15 points at 2392.20 (LTP) compared with spot closing of 2384.05. The numbers of contracts traded were 33,429 (Provisional).
Infosys February 2022 futures traded at a premium of 4.05 points at 1741.90 (LTP) compared with spot closing of 1737.85. The numbers of contracts traded were 30,779 (Provisional).
Sun Pharmaceutical Industries February 2022 futures traded at a discount of 2.30 points at 831.70 (LTP) compared with spot closing of 834.00. The numbers of contracts traded were 22,309 (Provisional).
Tata Steel February 2022 futures traded at a premium of 4.40 points at 1089.40 (LTP) compared with spot closing of 1085.00. The numbers of contracts traded were 22,009 (Provisional).
SBIN February 2022 futures traded at a premium of 1.00 points at 538.95 (LTP) compared with spot closing of 537.95. The numbers of contracts traded were 21,994 (Provisional).
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with a contraction of 223 units open interests. Among Nifty puts, 17000 SP from the February month expiry was the most active put with an addition of 2,784 units open interests. The maximum OI outstanding for Calls was at 18000 SP (40,006 units) and that for Puts was at 16500 SP (75,593 units). The respective Support and Resistance levels of Nifty are: Resistance 17,411.85 -- Pivot Point 17,338.00 -- Support -- 17,266.00.
The Nifty Put Call Ratio (PCR) finally stood at (1.51) for February month contract. The top five scrips with highest PCR on JK Cement (1.67), Piramal Enterprises (1.11), Dalmia Bharat (1.02), ZEEL (1.01) and Adani Enterprises (0.95).
Among most active underlying, Tata Motors witnessed an addition of 1,118 units of Open Interest in the February month futures contract, Reliance Industries witnessed a contraction of 2,609 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 1,457 units of Open Interest in the February month futures contract, SBIN witnessed an addition of 1,037 units of Open Interest in the February month futures contract, and Infosys witnessed an addition of 2,591 units of Open Interest in the February month futures contract (provisional).
