Nifty ended the Friday’s session in red zone. Market made negative start as Crisil Ratings’ report stated that since the introduction of new asset quality norms last November that brought in shadow banks and housing financiers on par with banks, housing finance companies' gross bad loans have gone up by 70 basis points (bps) even as their portfolio quality has improved. Further, market entered into green zone, as traders took support after as Finance Minister Nirmala Sitharaman has urged multilateral financial institutions to increase funding especially to low and middle income countries to prepare them to deal with pandemic situations in the future. She said that low income and middle income countries do not have enough resources and need global support to face challenges.
Traders also took some support with rating agency ICRA’s statement that the government's ambitious production-linked incentive (PLI) scheme will look to unlock manufacturing capacity as well as support in attracting about Rs 4 lakh crore of capital expenditure over the next five years. But, market again slipped into negative territory and ended below neutral line after SBI's research report-Ecowrap stated that country's gross domestic product (GDP) is likely to grow at 5.8 per cent in the third quarter of fiscal 2022. It stated ‘As per SBI Nowcasting Model, the forecasted GDP growth for Q3 FY22 would be 5.8%, with a downward bias. The full year (FY22) GDP growth is now revised downwards to 8.8% from our earlier estimate of 9.3%.’
Most of the sectoral indices ended in red except Bank and Financial Services. The top gainers from the F&O segment were Indian Cement, Voltas and Coal India. On the other hand, the top losers were FSL, Motherson Sumi Systems and Ambuja Cements. 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 increased by 0.72% and reached 22.17. The 50 share Nifty down by 28.30 points or 0.16% to settle at 17,276.30.
Nifty February 2022 futures closed at 17284.90 (LTP) on Friday, at a premium of 8.60 points over spot closing of 17276.30, while Nifty March 2022 futures ended at 17340.00 (LTP), at a premium of 63.70 points over spot closing. Nifty February futures saw an addition of 9,203 units, taking the total outstanding open interest (Contracts) to 2,12,026 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 discount of 2.30 points at 2425.00 (LTP) compared with spot closing of 2427.30. The numbers of contracts traded were 26,138 (Provisional).
Adani Ports February 2022 futures traded at a premium of 0.75 points at 729.20 (LTP) compared with spot closing of 728.45. The numbers of contracts traded were 25,544 (Provisional).
ICICI Bank February 2022 futures traded at a premium of 0.05 points at 748.00 (LTP) compared with spot closing of 747.95. The numbers of contracts traded were 23,691 (Provisional).
TCS February 2022 futures traded at a discount of 9.85 points at 3790.15 (LTP) compared with spot closing of 3800.00. The numbers of contracts traded were 21,755 (Provisional).
HDFC February 2022 futures traded at a discount of 0.25 points at 2436.95 (LTP) compared with spot closing of 2437.20. The numbers of contracts traded were 21,635 (Provisional).
Among, Nifty calls, 17500 SP from the February month expiry was the most active call with a contraction of 24,268 units open interests. Among Nifty puts, 17300 SP from the February month expiry was the most active put with an addition of 29,661 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,41,839 units) and that for Puts was at 17000 SP (1,22,600 units). The respective Support and Resistance levels of Nifty are: Resistance 17,365.00 -- Pivot Point 17,292.10 - Support -- 17,203.40.
The Nifty Put Call Ratio (PCR) finally stood at (0.93) for February month contract. The top five scrips with highest PCR on Havells India (0.98), Escorts (0.91), Vedanta (0.85),Voltas (0.83) and Eicher Motors (0.77).
Among most active underlying, ICICI Bank witnessed an addition of 4,367 units of Open Interest in the February month futures contract, Adani Ports witnessed an addition of 6,911 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 3,275 units of Open Interest in the February month futures contract, HDFC witnessed an addition of 4,146 units of Open Interest in the February month futures contract and TCS witnessed an addition of 1,222 units of Open Interest in the February month futures contract.
