Nifty surged for the second straight session on Wednesday led by strong buying interest in financial and automobile stocks. Mid- and small-cap shares finished on a strong note as Nifty Midcap 100 index jumped 2.16 per cent and small-cap 100 shares moved 2.38 per cent higher. Market made positive start with report that the Agriculture Ministry is ready with a new central scheme to promote natural farming in the country with an estimated outlay of Rs 2,500 crore. The proposed new scheme on natural farming will soon be placed before the Cabinet for approval.
Further, market maintained its gains, as Finance Minister Nirmala Sitharaman said the Union budget for 2022-23 was about the philosophy of 'Atmanirbhar Bharat' (self-reliant Bharat) as customs duties were increased on those imported products which are also manufactured in India so that people buy the Indian equivalent. In afternoon session, market extended its up move to trade at day’s high point, as Prime Minister Shri Narendra Modi has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company. With monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets. Finally, Nifty finished the wonderful day of trade with the gains of above two percent.
Most of the sectoral indices ended in green except Metal. The top gainers from the F&O segment were Indiabulls Housing Finance, Dalmia Bharat and Dr. Lal PathLabs. On the other hand, the top losers were Bosch, Petronet and Coforge. In the index option segment, maximum OI continues to be seen in the 16900 -17100 calls and 15900 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.91% and reached 27.47. The 50 share Nifty up by 331.90 points or 2.07% to settle at 16,345.35.
Nifty March 2022 futures closed at 16385.00 (LTP) on Wednesday, at a premium of 39.65 points over spot closing of 16345.35, while Nifty April 2022 futures ended at 16428.00 (LTP), at a premium of 82.65 points over spot closing. Nifty March futures saw an addition of 15,324 units, taking the total open interest (contracts) to 2,71,095 units. The near month derivatives contract will expire on March 31, 2022 (Provisional).
From the most active contracts, Reliance Industries March 2022 futures traded at a discount of 1.25 points at 2357.05 (LTP) compared with spot closing of 2358.30. The numbers of contracts traded were 46,975 (Provisional).
ICICI Bank March 2022 futures traded at a premium of 1.55 points at 671.55 (LTP) compared with spot closing of 670.00. The numbers of contracts traded were 31,115 (Provisional).
Infosys March 2022 futures traded at a premium of 4.20 points at 1822.00 (LTP) compared with spot closing of 1817.80. The numbers of contracts traded were 30,866 (Provisional).
HDFC Bank March 2022 futures traded at a discount of 4.25 points at 1366.80 (LTP) compared with spot closing of 1371.05. The numbers of contracts traded were 25,261 (Provisional).
Tata Steel March 2022 futures traded at a premium of 4.50 points at 1260.05 (LTP) compared with spot closing of 1255.55. The numbers of contracts traded were 22,578 (Provisional).
Among, Nifty calls, 16500 SP from the March month expiry was the most active call with a contraction of 1,848 units open interests. Among Nifty puts, 16000 SP from the March month expiry was the most active put with an addition of 1,834 units open interests. The maximum OI outstanding for Calls was at 17000 SP (42,675 units) and that for Puts was at 16000 SP (76,299 units). The respective Support and Resistance levels of Nifty are: Resistance 16,512.27 -- Pivot Point 16,251.13 -- Support -- 16,084.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for March month contract. The top five scrips with highest PCR on Berger Paints (0.94), ZEEL (0.89), RBL Bank (0.86), Adani Enterprises (0.86) and REC (0.85).
Among most active underlying, ICICI Bank witnessed an addition of 6,377 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 3,362 units of Open Interest in the March month futures contract, Tata Motors witnessed an addition of 1,096 units of Open Interest in the March month futures contract, HDFC Bank witnessed an addition of 4,668 units of Open Interest in the March month futures contract and Axis Bank witnessed an addition of 6,438 units of Open Interest in the March month futures contract (Provisional).
