Nifty executed bloodbath on first day of trading week and ended the day’s trade above three percent, as tensions rise over Russia’s military buildup near Ukraine and the US warning an invasion may be imminent. This comes amid high inflation and the prospect of aggressive Federal Reserve interest-rate hikes to tame it. Huge selling was witnessed in Nifty Metal, Nifty Bank and Nifty Realty. Market started day on somber note, as India’s industrial production growth slowed down for a fourth straight month in December to 0.4 per cent mainly due to a poor performance by the manufacturing sector. According to the data released by the National Statistical Office (NSO), the manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), contracted by 0.1 per cent in December.
Further, market added more losses, as wholesale inflation across the country rose to 12.96 per cent in January, which was higher than expectation. The wholesale price index (WPI) grew 13.56 per cent during the month of December 2021, while the WPI for November last year was revised to 14.87 per cent from 14.23 per cent. The WPI in January 2021 was at 2.51 per cent. Selling got intensified during last leg to end the session near intraday low point and Nifty finished worst day of trade below its 16850 mark.
All the sectoral indices ended in red. The top gainers from the F&O segment were Cummins India, TCS and Gujarat Gas. On the other hand, the top losers were LICHSGFIN, Hindustan Copper and Metropolis Healthcare. In the index option segment, maximum OI continues to be seen in the 16400 -16700 calls and 16900 -17150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 23.00% and reached 22.98. The 50 share Nifty down by 531.95 points or 3.06% to settle at 16,842.80.
Nifty February 2022 futures closed at 16809.00 (LTP) on Monday, at a discount of 33.80 points over spot closing of 16842.80, while Nifty March 2022 futures ended at 16873.00 (LTP), at a premium of 30.20 points over spot closing. Nifty February futures saw an addition of 12,913 units, taking the total open interest (contracts) to 1,96,429 units. The near month derivatives contract will expire on February 24, 2022 (Provisional).
From the most active contracts, TCS February 2022 futures traded at a discount of 2.80 points at 3726.35 (LTP) compared with spot closing of 3729.15. The numbers of contracts traded were 39,273 (Provisional).
Reliance Industries February 2022 futures traded at a premium of 1.30 points at 2333.30 (LTP) compared with spot closing of 2332.00. The numbers of contracts traded were 30,058 (Provisional).
Tata Steel February 2022 futures traded at a premium of 0.65 points at 1183.90 (LTP) compared with spot closing of 1183.25. The numbers of contracts traded were 28,989 (Provisional).
Infosys February 2022 futures traded at a premium of 1.85 points at 1685.85 (LTP) compared with spot closing of 1684.00. The numbers of contracts traded were 26,741 (Provisional).
SBIN February 2022 futures traded at a discount of 0.25 points at 500.00 (LTP) compared with spot closing of 500.25. The numbers of contracts traded were 22,442 (Provisional).
Among, Nifty calls, 17000 SP from the February month expiry was the most active call with an addition of 19,187 units open interests. Among Nifty puts, 16800 SP from the February month expiry was the most active put with an addition of 6,164 units open interests. The maximum OI outstanding for Calls was at 18000 SP (53,433 units) and that for Puts was at 16500 SP (72,763 units). The respective Support and Resistance levels of Nifty are: Resistance 17,024.98 -- Pivot Point 16,917.32 -- Support -- 16,735.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.12) for February month contract. The top five scrips with highest PCR on Escorts (0.97), Vedanta (0.87), Cipla (0.81), Aurobindo Pharma (0.75) and Bank of Baroda (0.73).
Among most active underlying, TCS witnessed an addition of 3,759 units of Open Interest in the February month futures contract, Tata Motors witnessed an addition of 3,091 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 3,048 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 1,873 units of Open Interest in the February month futures contract and HDFC Bank witnessed an addition of 4,213 units of Open Interest in the February month futures contract (provisional).
