Nifty snapped two day winning streak on Monday and ended the session below 17200 mark, as no signs of positive developments occurred between Russia-Ukraine again raised the concerns about global supplies of oil. Losses in Financial, FMCG and Auto shares pulled the market lower. After making positive start, soon market turned volatile, as according to the latest data from the RBI, the country’s foreign exchange reserves declined $9.646 billion to $622.275 billion in the week ended March 11. Further, market drifted lower with Former finance minister Yashwant Sinha’s statement that huge expenditure on welfare schemes by the Modi government has severely impacted the public finances which are currently in a mess with fiscal deficit touching abnormally high levels. In late afternoon session, market enlarge its losses, as retail inflation for farm workers and rural labourers rose to 5.59 per cent and 5.94 per cent respectively in February, mainly due to higher prices of certain food items. Some cautiousness also came with ongoing war between Russia and Ukraine has added another blow to FMCG makers as they expect a rise in the prices of wheat, edible oil and crude. Finally, Nifty finished the day’s trade with the cut of about a percent.
Most of the sectoral indices ended in red except Media, Metal and Pharma. The top gainers from the F&O segment were Delta Corp, Strides Pharma Science and Aurobindo Pharma. On the other hand, the top losers were IGL, GAIL and Petronet LNG. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 15900 -16150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 8.90% and reached 24.62. The 50 share Nifty down by 169.45 points or 0.98% to settle at 17,117.60.
Nifty March 2022 futures closed at 17167.85 (LTP) on Monday, at a premium of 50.25 points over spot closing of 17117.60, while Nifty April 2022 futures ended at 17224.90 (LTP), at a premium of 107.30 points over spot closing. Nifty March futures saw an addition of 3,506 units, taking the total outstanding open interest (OI) to 2,22,192 units. The near month derivatives contract will expire on March 31, 2022 (Provisional).
From the most active contracts, Infosys March 2022 futures traded at a premium of 7.85 points at 1862.80 (LTP) compared with spot closing of 1854.95. The numbers of contracts traded were 23,426 (Provisional).
Reliance Industries March 2022 futures traded at a premium of 10.50 points at 2473.50 (LTP) compared with spot closing of 2463.00. The numbers of contracts traded were 22,503 (Provisional).
Tata Steel March 2022 futures traded at a premium of 6.90 points at 1302.90 (LTP) compared with spot closing of 1296.00. The numbers of contracts traded were 21,217 (Provisional).
Maruti Suzuki March 2022 futures traded at a premium of 31.10 points at 7703.10 (LTP) compared with spot closing of 7672.00. The numbers of contracts traded were 16,498 (Provisional).
HDFC Bank March 2022 futures traded at a discount of 6.05 points at 1481.35 (LTP) compared with spot closing of 1487.40. The numbers of contracts traded were 15,957 (Provisional).
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 8,115 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 4,532 units open interests. The maximum OI outstanding for Calls was at 18000 SP (57,065 units) and that for Puts was at 16000 SP (94,570 units). The respective Support and Resistance levels of Nifty are: Resistance 17,281.83 -- Pivot Point 17,189.12 -- Support -- 17,024.88.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for March month contract. The top five scrips with highest PCR on Adani Enterprises (0.97), Jindal Steel & Power (0.91), L&TFH (0.88), Piramal Enterprises (0.88) and Berger Paints India (0.85).
Among most active underlying, Vedanta witnessed an addition of 1,871 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 296 units of Open Interest in the March month futures contract, Infosys witnessed an addition of 4,643 units of Open Interest in the March month futures contract, HDFC Bank witnessed an addition of 2,630 units of Open Interest in the March month futures contract and Maruti Suzuki witnessed an addition of 2,624 units of Open Interest in the March month futures contract (Provisional).
