Nifty continued its southward journey on third day and finished the session with the cut of above one and half a percent. Market made a negative start, as rating agency Moody’s Investors Service said Indian economy’s fiscal strength is unlikely to improve in the medium term, thus remaining a key credit challenge compared with peers, even as the FY23 budget’s focus on capital expenditure will support near-term growth. Further, market added more losses, as RBI data showed that the country’s foreign exchange reserves declined by $4.531 billion to stand at $629.755 billion in the week ended January 28. In the previous week ended January 21, the reserves had decreased by $678 million to $634.287 billion. It touched a lifetime high of $642.453 billion in the week ended September 3, 2021. Market extended its downside till the end as traders remain concerned as foreign portfolio investors (FPIs) pulled out as much as Rs 6,834 crore from Indian markets in the first four trading sessions of February. As per depositories data, FPIs took out Rs 3,627 crore from equities, Rs 3,173 crore from the debt segment and Rs 34 crore from hybrid instruments. Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 2,267.86 crore on Friday. Finally, nifty ended sluggish day of trade below 17250 mark.
Most of the sectoral indices ended in red except PSU Bank. The top gainers from the F&O segment were Gujarat Narmada Valley, Indigo and Bank of Baroda. On the other hand, the top losers were Apollo Hospitals Enterprise, Lupin and Torrent Power. 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 8.14% and reached 20.44. The 50 share Nifty down by 302.70 points or 1.73% to settle at 17,213.60.
Nifty February 2022 futures closed at 17213.80 (LTP) on Monday, at a premium of 0.20 points over spot closing of 17213.60, while Nifty March 2022 futures ended at 17277.00 (LTP), at a premium of 63.40 points over spot closing. Nifty February futures saw an addition of 20,032 units, taking the total open interest (contracts) to 2,06,041 units. The near month derivatives contract will expire on February 24, 2022 (Provisional).
From the most active contracts, SBIN February 2022 futures traded at a discount of 0.45 points at 533.45 (LTP) compared with spot closing of 533.90. The numbers of contracts traded were 53,819 (Provisional).
Tata Steel February 2022 futures traded at a premium of 1.45 points at 1186.40 (LTP) compared with spot closing of 1184.95. The numbers of contracts traded were 46,145 (Provisional).
Reliance Industries February 2022 futures traded at a premium of 3.60 points at 2323.00 (LTP) compared with spot closing of 2319.40. The numbers of contracts traded were 25,995 (Provisional).
Infosys February 2022 futures traded at a discount of 4.05 points at 1708.95 (LTP) compared with spot closing of 1713.00. The numbers of contracts traded were 22,787 (Provisional).
Indigo February 2022 futures traded at a premium of 8.70 points at 2169.70 (LTP) compared with spot closing of 2161.00. The numbers of contracts traded were 19,041 (Provisional).
Among, Nifty calls, 17800 SP from the February month expiry was the most active call with an addition of 7,134 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with a contraction of 3,200 units open interests. The maximum OI outstanding for Calls was at 18000 SP (52,222 units) and that for Puts was at 16500 SP (76,126 units). The respective Support and Resistance levels of Nifty are: Resistance 17,460.43 -- Pivot Point 17,289.92 -- Support -- 17,043.08.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for February month contract. The top five scrips with highest PCR on Vedanta (0.96), Escorts (0.92), Indigo (0.82), Bank of Baroda (0.81) and Adani Enterprises (0.80).
Among most active underlying, SBIN witnessed an addition of 1,730 units of Open Interest in the February month futures contract, Tata Steel witnessed an addition of 693 units of Open Interest in the February month futures contract, Bank of Baroda witnessed an addition of 671 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 4,112 units of Open Interest in the February month futures contract and Tata Power witnessed an addition of 372 units of Open Interest in the February month futures contract (provisional).
