Nifty extended its northward journey for third straight session, as Russia promised to scale down military operations around Kyiv and northern Ukraine as a confidence-building step, in the most tangible sign yet of progress towards negotiating an end to the war. Broader markets also strengthened, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising nearly one percent each. Market made positive start with Finance Minister Nirmala Sitharaman’s statement that India’s sharp economic recovery post COVID-19 and Budget initiatives will help in sustaining growth momentum in the years to come. She stated the government’s road map for imparting momentum to the economy focusses on growth at the macro level and complementing it with all-inclusive welfare at the micro level, promoting digital economy and fintech, technology-enabled development, energy transition and climate action and relying on a virtuous cycle of investment and growth.
Further, market added some more points, as Finance Minister Nirmala Sitharaman stated that gross NPAs of Scheduled Commercial Banks (SCBs) have reduced to Rs 7.73 lakh crore as of December 31, 2021, against Rs 10.36 lakh crore as of March 31, 2018, due to transparent recognition of stressed assets.
Market continued its strength to strength trading till the end after Sanjiv Mehta, President of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the Comprehensive Economic Partnership Agreement (CEPA), India's Free Trade Agreement with UAE, is good for all types of businesses and industries be it small scale or large scale and holds benefit for both goods and services sector. Finally, nifty finished the day’s trade above 17450 level.
Most of the sectoral indices ended in green except Metal, Pharma and Oil & Gas. The top gainers from the F&O segment were Godrej Consumer Products, Dalmia Bharat and LTI. On the other hand, the top losers were JSW Steel, ONGC and Hindalco. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 16300 -16600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.25% and reached 20.61. The 50 share Nifty up by 172.95 points or 1.00% to settle at 17,498.25.
Nifty March 2022 futures closed at 17493.30 (LTP) on Wednesday, at a discount of 4.95 points over spot closing of 17498.25, while Nifty April 2022 futures ended at 17545.80 (LTP), at a premium of 47.55 points over spot closing. Nifty March futures saw an addition of 11,736 units, taking the total open interest (Contracts) to 1,70,500 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 6.30 points at 2665.00 (LTP) compared with spot closing of 2658.70. The numbers of contracts traded were 51,062 (Provisional).
Infosys March 2022 futures traded at a premium of 3.90 points at 1903.65 (LTP) compared with spot closing of 1899.75. The numbers of contracts traded were 37,960 (Provisional).
Tata Steel March 2022 futures traded at a discount of 0.10 points at 1306.10 (LTP) compared with spot closing of 1306.20. The numbers of contracts traded were 31,025 (Provisional).
HDFC Bank March 2022 futures traded at a discount of 6.95 points at 1469.05 (LTP) compared with spot closing of 1476.00. The numbers of contracts traded were 30,672 (Provisional).
ICICI Bank March 2022 futures traded at a discount of 0.45 points at 729.00 (LTP) compared with spot closing of 729.45. The numbers of contracts traded were 25,492 (Provisional).
Among, Nifty calls, 17600 SP from the March month expiry was the most active call with an addition of 20,567 units open interests. Among Nifty puts, 17500 SP from the March month expiry was the most active put with an addition of 88,310 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,03,609 units) and that for Puts was at 16500 SP (1,21,207 units). The respective Support and Resistance levels of Nifty are: Resistance 17,551.43 -- Pivot Point 17,469.32 -- Support -- 17,416.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.11) for March month contract. The top five scrips with highest PCR on Adani Enterprises (1.25), Reliance Industries (1.22), Jindal Steel & Power (1.15), Mintree (1.11) and JSW Steel (1.09).
Among most active underlying, Reliance Industries witnessed an addition of 9,943 units of Open Interest in the March month futures contract, ICICI Bank witnessed a contraction of 4,946 units of Open Interest in the March month futures contract, HDFC Bank witnessed a contraction of 5,545 units of Open Interest in the March month futures contract, Infosys witnessed an addition of 7,783 units of Open Interest in the March month futures contract and Axis Bank witnessed an addition of 2,624 units of Open Interest in the March month futures contract (Provisional).
