Nifty ended Thursday’s session in red zone amid concerns over inflation and supply constraints. Selling in Banking and financial stocks dragged the market lower. Investors constantly monitored oil prices during the day. Market started day on sober note, as the Ministry of Commerce & Industry said total foreign direct investment (FDI) inflow to India declined to $74.01 billion in the calendar year 2021, which is 15 per cent lower from $87.55 billion recorded in the previous year. Further, market turned volatile and extended its losses after Commerce and Industry Minister Piyush Goyal said that the government is in continuous dialogue with exporters to address the problems and challenges that are emerging due to the ongoing Russia-Ukraine war and could lead to some kind of disruption in trade. In late afternoon session, index trimmed some of its losses but remained in negative zone with private report stating that domestic banks' share in the overall commercial credit has plunged to a low of 34 per cent in FY2021 from 56 per cent in FY2011 partly due to the pandemic and more because companies are moving away from banks for funds. Finally, Nifty ended sluggish day of trade on lower note.
Traders were pilling positioned in FMCG, IT and Media, while selling was witnessed in Bank, Auto and Financial Services counters. The top gainers from the F&O segment were ZEEL, IDFC and Firstsource Solutions. On the other hand, the top losers were L&TFH, Hindustan Petroleum Corporation and Max Financial Services. 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 3.30% and reached 23.93. The 50 share Nifty down by 22.90 points or 0.13% to settle at 17,222.75.
Nifty March 2022 futures closed at 17215.00 (LTP) on Thursday, at a discount of 7.75 points over spot closing of 17222.75, while Nifty April 2022 futures ended at 17264.55 (LTP), at a premium of 41.80 points over spot closing. Nifty March futures saw a contraction of 4,113 units, taking the total outstanding open interest (OI) to 2,09,598 units. The near month derivatives contract will expire on March 31, 2022 (Provisional).
From the most active contracts, Kotak Mahindra Bank March 2022 futures traded at a premium of 6.30 points at 1721.25 (LTP) compared with spot closing of 1714.95. The numbers of contracts traded were 41,488 (Provisional).
Reliance Industries March 2022 futures traded at a premium of 2.25 points at 2574.25 (LTP) compared with spot closing of 2572.00. The numbers of contracts traded were 32,756 (Provisional).
ZEEL March 2022 futures traded at a premium of 0.70 points at 300.00 (LTP) compared with spot closing of 299.30. The numbers of contracts traded were 27,482 (Provisional).
HDFC Bank March 2022 futures traded at a premium of 1.35 points at 1444.25 (LTP) compared with spot closing of 1442.90. The numbers of contracts traded were 25,176 (Provisional).
Tata Steel March 2022 futures traded at a premium of 0.05 points at 1347.00 (LTP) compared with spot closing of 1346.95. The numbers of contracts traded were 24,369 (Provisional).
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 36,466 units open interests. Among Nifty puts, 17200 SP from the March month expiry was the most active put with an addition of 31,316 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,11,034 units) and that for Puts was at 16000 SP (1,09,030 units). The respective Support and Resistance levels of Nifty are: Resistance 17,312.62 -- Pivot Point 17,201.88 -- Support -- 17,112.02.
The Nifty Put Call Ratio (PCR) finally stood at (0.96) for March month contract. The top five scrips with highest PCR on Jindal Steel & Power (1.27), Aurobindo Pharma (1.03), Adani Enterprises (0.98), Reliance Industries (0.93) and JSW Steel (0.91).
Among most active underlying, Kotak Mahindra Bank witnessed an addition of 7,504 units of Open Interest in the March month futures contract, ZEEL witnessed an addition of 947 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 5,016 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 4,413 units of Open Interest in the March month futures contract and HDFC Bank witnessed an addition of 3,106 units of Open Interest in the March month futures contract (Provisional).
