Rising for the second straight session, Nifty finished the session with the gains above half a percent. India VIX was up by 6.84%. Market started day on somber note, as investors remained cautious on newsflow on the Russia-Ukraine conflict. Further, market extended its losses, as domestic traders' body -- the Confederation of All India Traders (CAIT) said the conflict between Russia and Ukraine is expected to hit badly the Indian economy and the trade to a significant extent. However, in afternoon session, market wiped out all its losses and entered into green zone, as India Ratings and Research (Ind-Ra) in its latest report has said that after years of enduring challenges, the non-banking finance companies (NBFCs) are finally set to witness a normalisation in FY23. The NBFCs will start FY23 with sufficient capital buffers, stable margins and sizable on-balance sheet provisioning, while adequate system liquidity would aid funding. Further, market ended the session at intraday high as traders took support with NITI Aayog Arvind Panagariya’s statement that India is poised to grow at 7-8% over the next decade and be the third largest economy by 2030 on the back of four big reforms by the government. This could even go up to 9-10% with increasing the size and scale of operation and doing away with protectionism.
Most of the sectoral indices ended in green except Bank, Auto and Financial Services. The top gainers from the F&O segment were GAIL, Hindalco and Tata Steel. On the other hand, the top losers were Strides Pharma Science, RAIN and Biocon. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16400 -16600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 6.84% and reached 28.57. The 50 share Nifty up by 135.50 points or 0.81% to settle at 16,793.90.
Nifty March 2022 futures closed at 16789.80 (LTP) on Monday, at a discount of 4.10 points over spot closing of 16793.90, while Nifty April 2022 futures ended at 16842.45 (LTP), at a premium of 48.55 points over spot closing. Nifty March futures saw an addition of 23,702 units, taking the total outstanding open interest (contracts) to 2,35,313 units. The near month derivatives contract will expire on March 31, 2022 (Provisional).
From the most active contracts, Tata Steel March 2022 futures traded at a discount of 1.90 points at 1216.00 (LTP) compared with spot closing of 1217.90. The numbers of contracts traded were 42,202 (Provisional).
Reliance Industries March 2022 futures traded at a premium of 6.95 points at 2361.95 (LTP) compared with spot closing of 2355.00. The numbers of contracts traded were 38,403 (Provisional).
Hindalco Industries March 2022 futures traded at a discount of 0.85 points at 571.30 (LTP) compared with spot closing of 572.15. The numbers of contracts traded were 34,142 (Provisional).
Infosys March 2022 futures traded at a premium of 3.40 points at 1722.40 (LTP) compared with spot closing of 1719.00. The numbers of contracts traded were 32,162 (Provisional).
HDFC Bank March 2022 futures traded at a premium of 2.40 points at 1431.20 (LTP) compared with spot closing of 1428.80. The numbers of contracts traded were 23,374 (Provisional).
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 3,452 units open interests. Among Nifty puts, 16500 SP from the March month expiry was the most active put with an addition of 1,808 units open interests. The maximum OI outstanding for Calls was at 18000 SP (41,493 units) and that for Puts was at 16500 SP (1,02,267 units). The respective Support and Resistance levels of Nifty are: Resistance 16,954.43 -- Pivot Point 16,655.37 -- Support -- 16,494.83.
The Nifty Put Call Ratio (PCR) finally stood at (1.86) for March month contract. The top five scrips with highest PCR on JK Cements (26.00), Berger Paints India (1.45), Intellect Design Arena (1.29), Hindustan Aeronautics (1.15) and Havells India (1.12).
Among most active underlying, Reliance Industries witnessed an addition of 3,064 units of Open Interest in the March month futures contract, Tata Steel witnessed an addition of 2,820 units of Open Interest in the March month futures contract, Hindalco Industries witnessed an addition of 7,232 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 4,386 units of Open Interest in the March month futures contract and HDFC Bank witnessed an addition of 5,788 units of Open Interest in the March month futures contract (Provisional).
