Nifty ended the session on negative note on Wednesday amid worsening sentiments on the Russia-Ukraine crisis. Market made somber start, as India’s economic growth slowed to 5.4% in the third quarter of 2021-22. GST collections for February declined to Rs 1.33 lakh crore, down 5.6% from the first month of 2022. Traders were worried as India Ratings said the ongoing geopolitical risks arising from the Russia-Ukraine war would push India's import bills higher for items such as mineral oils and gas, gems and jewellery, edible oils and fertilisers. Further, market continued to trade lower with data showing that investments in the Indian capital market through Participatory notes (P-notes) dropped to Rs 87,989 crore at the end of January and foreign investors will continue with their negative stance amid the Ukraine crisis. Besides, oil prices surged over 7% to their highest since 2014, as a global agreement to release crude reserves failed to calm fears about supply disruptions from Russia's invasion of Ukraine. Moreover, Petrol and diesel price hikes are likely to resume after state elections get over next week to bridge the Rs 9 a litre gap created by international oil prices soaring past $100 a barrel. Market extended downside till the end and finished the day’s trade below 16700 mark.
Most of the sectoral indices ended in red except Media, Metal and Oil& Gas. The top gainers from the F&O segment were Coal India, MCX and HDFC Life Insurance Company. On the other hand, the top losers were Dr Reddy's Laboratories, Crompton Greaves Consumer Electricls and Maruti Suzuki India. 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 2.31% and reached 29.23. The 50 share Nifty down by 187.95 points or 1.12% to settle at 16,605.95.
Nifty March 2022 futures closed at 16644.85 (LTP) on Wednesday, at a premium of 38.90 points over spot closing of 16605.95, while Nifty April 2022 futures ended at 16687.70 (LTP), at a premium of 81.75 points over spot closing. Nifty March futures saw an addition of 38,576 units, taking the total outstanding open interest (contracts) to 2,62,864 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 premium of 1.30 points at 1290.05 (LTP) compared with spot closing of 1288.75. The numbers of contracts traded were 61,504 (Provisional).
Hindalco Industries March 2022 futures traded at a premium of 0.80 points at 599.45 (LTP) compared with spot closing of 598.65. The numbers of contracts traded were 39,283 (Provisional).
HDFC Bank March 2022 futures traded at a premium of 2.75 points at 1381.30 (LTP) compared with spot closing of 1378.55. The numbers of contracts traded were 37,727 (Provisional).
Reliance Industries March 2022 futures traded at a premium of 4.40 points at 2403.65 (LTP) compared with spot closing of 2399.25. The numbers of contracts traded were 36,875 (Provisional).
ICICI Bank March 2022 futures traded at a premium of 2.10 points at 719.60 (LTP) compared with spot closing of 717.50. The numbers of contracts traded were 32,193 (Provisional).
Among, Nifty calls, 17000 SP from the March month expiry was the most active call with an addition of 1,511 units open interests. Among Nifty puts, 16500 SP from the March month expiry was the most active put with an addition of 4,310 units open interests. The maximum OI outstanding for Calls was at 18000 SP (45,881 units) and that for Puts was at 16500 SP (1,01,511 units). The respective Support and Resistance levels of Nifty are: Resistance 16,696.75 -- Pivot Point 16,587.70 -- Support -- 16,496.90.
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for March month contract. The top five scrips with highest PCR on JK Cements (8.67), Berger Paints India (1.56), Motherson Sumi Systems (1.03), Intellect Design Arena (0.98) and RBL Bank (0.96).
Among most active underlying, Tata Steel witnessed an addition of 4,266 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 12,766 units of Open Interest in the March month futures contract, HDFC Bank witnessed an addition of 13,006 units of Open Interest in the March month futures contract, Hindalco Industries witnessed an addition of 4,089 units of Open Interest in the March month futures contract and Reliance Industries witnessed an addition of 6,600 units of Open Interest in the March month futures contract (Provisional).
