Late wave of selling drags Nifty lower

After spending most of the day in green zone, Nifty ended the Wednesday’s session in red, as investors tracked the latest developments in the Russia-Ukraine crisis. Market made positive start with the commerce ministry data showing that the country’s merchandise exports rose by 26.4 per cent to $25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals. The exports during February 1-21 last year stood at $20.04 billion. Market continued positive terrain, as Western sanctions on Russia after Russian troop movements near Ukraine might soften Moscow’s defiant tone and leave some room to avoid a war. However, in afternoon trade, market trimmed some gains and slipped into red zone as traders were cautious after Finance Minister Nirmala Sitharaman’s statement that the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. Sitharaman said ‘It is difficult to say how it (crude prices) will go.

Most of the sectoral indices ended in green except Auto, Oil &Gas and IT. The top gainers from the F&O segment were Crompton Greaves Consumer Electricls, DLF and FSL. On the other hand, the top losers were ONGC, IBULHSGFIN and Gujrat Gas. In the index option segment, maximum OI continues to be seen in the 17800 -18200 calls and 16450 -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 7.95% and reached 24.54. The 50 share Nifty down by 28.95 points or 0.17% to settle at 17,063.25.

Nifty February 2022 futures closed at 17067.85 (LTP) on Wednesday, at a premium of 4.60 points over spot closing of 17063.25, while Nifty March 2022 futures ended at 17114.80(LTP), at a premium of 51.55 points over spot closing. Nifty February futures saw an addition of 19,553 units, taking the total open interest (contracts) to 1,86,358 mn units. The near month derivatives contract will expire on February 24, 2022 (Provisional).

From the most active contracts, Infosys February 2022 futures traded at a premium of 1.15 points at 1743.95 (LTP) compared with spot closing of 1742.80. The numbers of contracts traded were 36,287 (Provisional).

Reliance Industries February 2022 futures traded at a premium of 2.70 points at 2373.95 (LTP) compared with spot closing of 2371.25. The numbers of contracts traded were 29,716 (Provisional).

Tata Steel February 2022 futures traded at a premium of 0.15 points at 1138.05 (LTP) compared with spot closing of 1137.90. The numbers of contracts traded were 27,441 (Provisional).

TCS February 2022 futures traded at a premium of 5.10 points at 3577.00 (LTP) compared with spot closing of 3571.90. The numbers of contracts traded were 26,840 (Provisional).

ICICI Bank February 2022 futures traded at a premium of 0.55 points at 745.05 (LTP) compared with spot closing of 744.50. The numbers of contracts traded were 18,861 (Provisional).

Among, Nifty calls, 17200 SP from the February month expiry was the most active call with an addition of 96,762 units open interests. Among Nifty puts, 17000 SP from the February month expiry was the most active put with a contraction of 8,113 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,78,433 units) and that for Puts was at 16500 SP (1,80,062 units). The respective Support and Resistance levels of Nifty are: Resistance 17,180.02 -- Pivot Point 17,103.93 -- Support -- 16,987.17.

The Nifty Put Call Ratio (PCR) finally stood at (0.73) for February month contract. The top five scrips with highest PCR on Havells India (1.21), Escorts (0.94), Cholamandalam Investment and Fin Co (0.92), Titan Company (0.91) and Voltas (0.90).

Among most active underlying, ICICI Bank witnessed an addition of 2,631 units of Open Interest in the February month futures contract, Infosys witnessed an addition of 29 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 5,920 units of Open Interest in the February month futures contract, Tata Motors witnessed a contraction of 1,049 units of Open Interest in the February month futures contract and HDFC Bank witnessed a contraction of 2,648 units of Open Interest in the February month futures contract.