The local benchmark -- Nifty -- gave powerful performance by surging over a percent. The overall market breadth was positive as 37 shares were advancing and 13 were declining on the index amid decline in crude from the recent high of $140 to below $110 and declining trends in most metal prices indicate that the feared high inflation may not materialize. Market made slightly positive start, as India's foreign exchange (forex) reserves rose by $394 million to $631.92 billion in the week ended March 4 led by a sharp jump in foreign currency assets. The forex reserves had declined by $1.425 billion in the previous week. Further, market added some gains with Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that prudent budget assumptions for FY23 will ensure that the macro-fundamentals will be able to hold-up in the near-term amid heightened concerns over the impact of the Russian invasion of Ukraine on the Indian economy.
In afternoon trade, index traded strength to strength to end the session at day’s high point after the government sought Parliament nod for net additional spending of over Rs 1.07 lakh crore in the third batch of supplementary demands for current fiscal year. As per the third batch of supplementary demands for grants tabled in the Lok Sabha, approval is being sought for gross additional expenditure of over Rs 1.58 lakh crore. Finally, Nifty finished the session above 16800 mark.
Most of the sectoral indices ended in green except FMGC, Metal and Pharma. The top gainers from the F&O segment were Deepak Nitrite, ZEEL and IGL. On the other hand, the top losers were Jubilant FoodWorks, AU Small Finance Bank and Hindustan Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 17900 -18150 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 increased by 1.31% and reached 25.68. The 50 share Nifty up by 240.85 points or 1.45% to settle at 16,871.30.
Nifty March 2022 futures closed at 16909.00 (LTP) on Monday, at a premium of 37.70 points over spot closing of 16871.30, while Nifty April 2022 futures ended at 16950.00 (LTP), at a premium of 78.70 points over spot closing. Nifty March futures saw an addition of 14,980 units, taking the total open interest (contracts) to 2,63,863 units. The near month derivatives contract will expire on March 31, 2022 (Provisional).
From the most active contracts, Jubilant FoodWorks March 2022 futures traded at a premium of 5.30 points at 2520.00 (LTP) compared with spot closing of 2514.70. The numbers of contracts traded were 54,538 (Provisional).
HDFC Bank March 2022 futures traded at a discount of 5.25 points at 1437.00 (LTP) compared with spot closing of 1442.25. The numbers of contracts traded were 33,899 (Provisional).
Infosys March 2022 futures traded at a premium of 4.00 points at 1895.00 (LTP) compared with spot closing of 1891.00. The numbers of contracts traded were 30,197 (Provisional).
Reliance Industries March 2022 futures traded at a premium of 9.15 points at 2431.35 (LTP) compared with spot closing of 2422.20. The numbers of contracts traded were 23,635 (Provisional).
ICICI Bank March 2022 futures traded at a premium of 1.45 points at 698.95 (LTP) compared with spot closing of 697.50. The numbers of contracts traded were 20,697 (Provisional).
Among, Nifty calls, 17000 SP from the March month expiry was the most active call with a contraction of 1,747 units open interests. Among Nifty puts, 16500 SP from the March month expiry was the most active put with an addition of 1,514 units open interests. The maximum OI outstanding for Calls was at 18000 SP (46,760 units) and that for Puts was at 16000 SP (95,089 units). The respective Support and Resistance levels of Nifty are: Resistance 16,970.67 -- Pivot Point 16,788.58 -- Support -- 16,689.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.53) for March month contract. The top five scrips with highest PCR on Berger Paints India (0.93), Ramco Cements (0.88), Adani Enterprises (0.85), Balkrishna Industries (0.85) and JSPL (0.83).
Among most active underlying, HDFC Bank witnessed an addition of 2,912 units of Open Interest in the March month futures contract, Tata Motors witnessed an addition of 2,735 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 395 units of Open Interest in the March month futures contract, Jubilant FoodWorks witnessed an addition of 10,852 units of Open Interest in the March month futures contract and Infosys witnessed an addition of 6,240 units of Open Interest in the March month futures contract (Provisional).
