Nifty finished Wednesday’s session near intraday high point after previous session fall ahead of the outcome of the Federal Reserve policy meeting. Investors are expecting the US central bank to raise interest rates for the first time in three years by at least 25 basis points amid surging prices. India VIX was down by 9.77%. Buying in Ultratech Cement, Axis Bank, Indusind Bank, Shree Cement and Bajaj Auto helped the market to sustain gains till the end. Market made positive start, as traders found support with the Ministry of Finance’s statement that the Indian economy is well prepared to handle any capital outflows caused by external shocks. In its Monthly Economic Review report released the finance ministry's Department of Economic Affairs said India has adequate foreign exchange reserves to absorb the risks posed by the uncertain geopolitical environment.
Index continued firm trade with Minister of State for Finance Bhagwat Karad stating that banks have effected an aggregate recovery of Rs 7.34 lakh crore, in non-performing assets and written-off loan accounts, including those reported as fraud during the past six financial years and the first six months of the current financial year (FY22). In last leg of trade, market touched its intraday high point and finally market finished the day’s trade above 16950 mark.
All the sectoral indices ended in green. The top gainers from the F&O segment were JK Cement, Intellect Design Arena and Nippon Life India Asset Management. On the other hand, the top losers were Pfizer, Gujrat Gas and Mphasis. 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 decreased by 9.77% and reached 24.12. The 50 share Nifty up by 312.35 points or 1.87% to settle at 16,975.35.
Nifty March 2022 futures closed at 17006.50 (LTP) on Wednesday, at a premium of 31.15 points over spot closing of 16975.35, while Nifty April 2022 futures ended at 17049.00 (LTP), at a premium of 73.65 points over spot closing. Nifty March futures saw a contraction of 23,976 units, taking the total open interest (contracts) to 2,30,127 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 premium of 10.30 points at 2411.80 (LTP) compared with spot closing of 2401.50. The numbers of contracts traded were 24,264 (Provisional).
Infosys March 2022 futures traded at a premium of 7.70 points at 1896.70 (LTP) compared with spot closing of 1889.00. The numbers of contracts traded were 22,203 (Provisional).
Tata Steel March 2022 futures traded at a premium of 5.00 points at 1267.00 (LTP) compared with spot closing of 1262.00. The numbers of contracts traded were 17,962 (Provisional).
ICICI Bank March 2022 futures traded at a premium of 2.40 points at 709.00 (LTP) compared with spot closing of 706.60. The numbers of contracts traded were 16,102 (Provisional).
HDFC Bank March 2022 futures traded at a discount of 3.05 points at 1442.90 (LTP) compared with spot closing of 1445.95. The numbers of contracts traded were 15,994 (Provisional).
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with a contraction of 1,873 units open interests. Among Nifty puts, 16000 SP from the March month expiry was the most active put with an addition of 92,051 units open interests. The maximum OI outstanding for Calls was at 18000 SP (46,956 units) and that for Puts was at 16000 SP (96,291 units). The respective Support and Resistance levels of Nifty are: Resistance 17,029.55 -- Pivot Point 16,933.70 -- Support -- 16,879.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.48) for March month contract. The top five scrips with highest PCR on Infosys (0.88), Ashok Leyland (0.87), Divi's Laboratories (0.86), Adani Enterprises (0.83) and Ramco Cements (0.82).
Among most active underlying, ICICI Bank witnessed a contraction of 1,048 units of Open Interest in the March month futures contract, Tata Motors witnessed a contraction of 1,460 units of Open Interest in the March month futures contract, Reliance Industries witnessed a contraction of 2,909 units of Open Interest in the March month futures contract, HDFC Bank witnessed a contraction of 1,075 units of Open Interest in the March month futures contract and Infosys witnessed an addition of 993 units of Open Interest in the March month futures contract (Provisional).
