Nifty extended its upward trend on the Budget day as market participants reacted positively to the big infrastructure boost in the Budget 2022 delivered by Finance Minister Nirmala Sitharaman and finished the session with gains of above a percent. Market made positive start, as GST collection in January crossed Rs 1.38 lakh crore in January, a growth of 15 per cent over the year-ago period. Some support also came in as India’s eight core sectors grew by 3.8 percent in December 2021 compared to 3.4 percent in November 2021. Further, market extended its gains with newly appointed Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that abatement of the COVID-19 pandemic would kick in virtuous cycle investment leading to job creation. He also said the government has taken various steps to support lower income categories.
But, late afternoon session, index slipped in red zone for little time, as Indian manufacturing activity fell in the month of January, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 54.0 in January from 55.5 in December. However, soon market entered into positive territory to trade higher, as Finance Minister Nirmala Sitharaman said that the outlay for capital expenditure has been stepped up sharply by 35.4 percent to Rs 7.50 lakh crore for the financial year 2023 from Rs 5.54 lakh crore in FY22. Finally, nifty ended day’s trade above 17500 mark.
Most of the sectoral indices ended in green except Auto, PSU Bank and Oil & Gas. The top gainers from the F&O segment were Navin Fluorine International, Tata Steel and Sun Pharmaceutical Industries. On the other hand, the top losers were MFSL, BPCL and Hindustan Petroleum Corporation. 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 8.99% and reached 19.98. The 50 share Nifty up by 237.00 points or 1.37% to settle at 17,576.85.
Nifty February 2022 futures closed at 17608.85 (LTP) on Tuesday, at a premium of 32.00 points over spot closing of 17576.85, while Nifty March 2022 futures ended at 17668.00 (LTP), at a premium of 91.15 points over spot closing. Nifty February futures saw an addition of 14,475 units, taking the total outstanding open interest (OI) to 2,02,145 units. The near month derivatives contract will expire on February 24, 2022 (Provisional).
From the most active contracts, Tata Steel February 2022 futures traded at a premium of 5.75 points at 1172.30 (LTP) compared with spot closing of 1166.55. The numbers of contracts traded were 69,623 (Provisional).
Reliance Industries February 2022 futures traded at a premium of 10.60 points at 2393.40 (LTP) compared with spot closing of 2382.80. The numbers of contracts traded were 41,609 (Provisional).
SBIN February 2022 futures traded at a premium of 2.30 points at 534.90 (LTP) compared with spot closing of 532.60. The numbers of contracts traded were 36,733 (Provisional).
ICICI Bank February 2022 futures traded at a premium of 1.15 points at 812.45 (LTP) compared with spot closing of 811.30. The numbers of contracts traded were 35,995 (Provisional).
ITC February 2022 futures traded at a discount of 3.90 points at 224.00 (LTP) compared with spot closing of 227.90. The numbers of contracts traded were 34,863 (Provisional).
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 3,895 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with an addition of 8,608 units open interests. The maximum OI outstanding for Calls was at 18000 SP (44,002 units) and that for Puts was at 16500 SP (82,755 units). The respective Support and Resistance levels of Nifty are: Resistance 17,717.98 -- Pivot Point 17,481.27 -- Support -- 17,340.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.57) for February month contract. The top five scrips with highest PCR on JK Cement (1.20), Piramal Enterprises (0.98), Dalmia Bharat (0.93), ZEEL (0.93) and Vedanta (0.91).
Among most active underlying, Tata Motors witnessed an addition of 3,795 units of Open Interest in the February month futures contract, ICICI Bank witnessed a contraction of 2,107 units of Open Interest in the February month futures contract, Tata Power witnessed an addition of 474 units of Open Interest in the February month futures contract, Tata Steel witnessed an addition of 6,700 units of Open Interest in the February month futures contract and SBIN witnessed an addition of 2,741 units of Open Interest in the February month futures contract (provisional).
