Nifty resumes northward journey on Tuesday

Nifty resumes northward journey on Tuesday and finished the session with the gains of over a percent amid positive global cues. Globally investors took support after US Federal Reserve Chairman Jerome Powell said that the central bank will, if required, move ‘more aggressively’ to raise federal funds rate by more than 25 basis points at its policy meetings in an effort to curb inflation. Market made cautious start, as rating agency Fitch in its Global economic Outlook-March 2022 has slashed India's growth forecast for the next fiscal to 8.5 per cent from 10.3 per cent. The agency slashed India's growth forecast on account of sharply higher energy prices. Further, market extended its losses, as Reserve Bank of India (RBI) Governor Shaktikanta Das said that all COVID-related liquidity relief measures extended by the central bank have come with a sunset date and would be withdrawn in due course. However, in afternoon session, index recovered from losses to trade higher with Reserve Bank Governor Shaktikanta Das’ statement that the RBI will continue to ensure adequate liquidity to support the economy, which is facing many headwinds in the form of soaring crude oil and key commodity prices following the Russian invasion of Ukraine. Finally, Nifty closed the session above 17300 mark.

Most of the sectoral indices ended in green except FMCG, Realty and Pharma. The top gainers from the F&O segment were Rain Industries, Birlasoft and Tech Mahindra. On the other hand, the top losers were Godrej Consumer Products, Abbott India and ZEEL. 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 decreased by 2.24% and reached 24.07. The 50 share Nifty up by 197.90 points or 1.16% to settle at 17,315.50.

Nifty March 2022 futures closed at 17380.90 (LTP) on Tuesday, at a premium of 65.40 points over spot closing of 17315.50, while Nifty April 2022 futures ended at 17434.00 (LTP), at a premium of 118.50 points over spot closing. Nifty March futures saw an addition of 12,785 units, taking the total open interest (contracts) to 2,30,106 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 10.00 points at 2538.00 (LTP) compared with spot closing of 2528.00. The numbers of contracts traded were 47,050 (Provisional).

Tata Steel March 2022 futures traded at a premium of 3.00 points at 1311.00 (LTP) compared with spot closing of 1308.00. The numbers of contracts traded were 28,762 (Provisional).

Infosys March 2022 futures traded at a premium of 4.40 points at 1891.40 (LTP) compared with spot closing of 1887.00. The numbers of contracts traded were 23,062 (Provisional).

HDFC Bank March 2022 futures traded at a premium of 0.95 points at 1497.75 (LTP) compared with spot closing of 1496.80. The numbers of contracts traded were 20,588 (Provisional).

TCS March 2022 futures traded at a premium of 4.05 points at 3709.00 (LTP) compared with spot closing of 3704.95. The numbers of contracts traded were 20,032 (Provisional).

Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 545 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 6,448 units open interests. The maximum OI outstanding for Calls was at 18000 SP (60,840 units) and that for Puts was at 16000 SP (1,05,383 units). The respective Support and Resistance levels of Nifty are: Resistance 17,431.17 -- Pivot Point 17,218.73 -- Support -- 17,103.07.

The Nifty Put Call Ratio (PCR) finally stood at (1.36) for March month contract. The top five scrips with highest PCR on Jindal Steel & Power (1.00), L&TFH (1.00), Adani Enterprises (0.98), Aurobindo Pharma (0.93) and M&MFIN (0.85).

Among most active underlying, Reliance Industries witnessed an addition of 5,157 units of Open Interest in the March month futures contract, Tata Motors witnessed an addition of 788 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 1,736 units of Open Interest in the March month futures contract, HDFC Bank witnessed an addition of 1,026 units of Open Interest in the March month futures contract and Tata Steel  witnessed a contraction of 1,383 units of Open Interest in the March month futures contract (Provisional).