Nifty ended highly volatile trading session in red zone. Mid and small-cap shares finished on a mixed note as Nifty Midcap 100 index fell 0.29 per cent and Nifty small-cap 100 shares gained 0.73 per cent. Market made positive start, an SBI research report stated that India can add $20 billion to its Gross Domestic Product (GDP) if the country can reduce by 50 per cent the dependence on imports from China by leveraging the production linked incentive schemes. Further, soon market turned volatile and slipped into red zone with government data showing that exports from special economic zones (SEZs) grew at a slower pace as compared to the growth of overall outbound shipments from the country during the first eight months of the current fiscal year.
However, in afternoon trade, index wiped out all its looses to trade higher, as finance ministry’s monthly economic review said that Indian economy is poised to grow at the quickest pace among the league of large nations on the back of various initiatives taken by the government in Budget 2022-23. The current year may as well end with an economic reset manifest of a post-COVID-19 world Manufacturing and Construction will be the ‘growth drivers’, triggered by the PLI schemes and public capex in infrastructure. But, market failed to protect its gains and again entered into negative territory.
Most of the sectoral indices ended in red except FMCG, Pharma and Realty. The top gainers from the F&O segment were Crompton Greaves Consumer Electricls, M&MFIN and Abbott India. On the other hand, the top losers were Persistent Systems, FSL and Balkrishna Industries. In the index option segment, maximum OI continues to be seen in the 17800 -18200 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 decreased by 10.29% and reached 20.61. The 50 share Nifty down by 30.25 points or 0.17% to settle at 17,322.20.
Nifty February 2022 futures closed at 17297.90 (LTP) on Wednesday, at a discount of 24.30 points over spot closing of 17322.20, while Nifty March 2022 futures ended at 17355.00 (LTP), at a premium of 32.80 points over spot closing. Nifty February futures saw an addition of 18,284 units, taking the total outstanding open interest (contracts) to 2,07,520 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 2.10 points at 2409.75 (LTP) compared with spot closing of 2407.65. The numbers of contracts traded were 28,868 (Provisional).
Infosys February 2022 futures traded at a premium of 3.65 points at 1735.15 (LTP) compared with spot closing of 1731.50. The numbers of contracts traded were 28,759 (Provisional).
TCS February 2022 futures traded at a discount of 3.00 points at 3807.00 (LTP) compared with spot closing of 3810.00. The numbers of contracts traded were 22,256 (Provisional).
HDFC February 2022 futures traded at a premium of 4.75 points at 2366.80 (LTP) compared with spot closing of 2362.05. The numbers of contracts traded were 21,980 (Provisional).
Tata Steel February 2022 futures traded at a premium of 1.55 points at 1189.50 (LTP) compared with spot closing of 1187.95. The numbers of contracts traded were 19,992 (Provisional).
Among, Nifty calls, 17500 SP from the February month expiry was the most active call with a contraction of 11,531 units open interests. Among Nifty puts, 17000 SP from the February month expiry was the most active put with an addition of 22,872 units open interests. The maximum OI outstanding for Calls was at 18000 SP (58,130 units) and that for Puts was at 17000 SP (87,494 units). The respective Support and Resistance levels of Nifty are: Resistance 17,455.97 -- Pivot Point 17,356.83 -- Support -- 17,223.07.
The Nifty Put Call Ratio (PCR) finally stood at (1.17) for February month contract. The top five scrips with highest PCR on Havells India (0.98), Escorts (0.91), Vedanta (0.87), Adani Enterprises (0.80) and Aurobindo Pharma (0.78).
Among most active underlying, Tata Motors witnessed a contraction of 436 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 3,466 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 1,303 units of Open Interest in the February month futures contract, HDFC witnessed an addition of 1,788 units of Open Interest in the February month futures contract and Infosys witnessed an addition of 6,297 units of Open Interest in the February month futures contract (provisional).
