In highly volatile session, Nifty snapped three day winning streak on last trading day of FY22. After a positive start, index remained higher for the most part in the first half of the trading session, as the International Monetary Fund said India, which has received a record number of foreign direct investment during the last few years despite COVID-19 crisis, has quite a few safeguards in place to mitigate the risks from capital flows. However, in afternoon trade, market turned volatile, as India Ratings and Research (Ind-Ra) lowered India’s Gross Domestic Product (GDP) growth forecast to 7-7.2 per cent for FY23, from 7.6 per cent projected earlier, citing the rising uncertainty over Russia-Ukraine war and the resultant dampening of consumer sentiment.
Besides, Petrol and diesel prices were hiked by 80 paise a litre each, taking the total increase in rates in the last 10 days to Rs 6.40 per litre. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. Index continued its weak trade till the end, as a private report stating that after the record USD 23 billion of additional investments in the domestic equities in FY21, foreign funds have massively slashed their fresh exposure to the country to USD 3.7 billion in FY22, also pairing down their holdings in NSE500 to 19.9 per cent or worth USD 582 billion, down from their peak of 21.4 per cent. Finally, Nifty finished the trade in red zone.
Traders were seen piling positions in Bankex, Auto and FMCG sector while selling was witnessed in Metal, Pharma and PSU Bank sector stocks. The top gainers from the F&O segment were Hindustan Aeronautics, Tata Communications and National Aluminium Company. On the other hand, the top losers were Hindalco Industries, Strides Pharma Science and Divi's Laboratories. In the index option segment, maximum OI continues to be seen in the 17400 -17550 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 0.24% and reached 20.56. The 50 share Nifty down by 33.50 points or 0.19% to settle at 17,464.75.
Nifty April 2022 futures closed at 17546.00 (LTP) on Thursday, at a premium of 81.25 points over spot closing of 17464.75, while Nifty May 2022 futures ended at 17574.80 (LTP), at a premium of 110.05 points over spot closing. Nifty April futures saw an addition of 55,229 units, taking the total outstanding open interest (contracts) to 2,45,408 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, Reliance Industries April 2022 futures traded at a premium of 16.60 points at 2652.60 (LTP) compared with spot closing of 2636.00. The numbers of contracts traded were 62,515 (Provisional).
Infosys April 2022 futures traded at a premium of 8.30 points at 1916.50 (LTP) compared with spot closing of 1908.20. The numbers of contracts traded were 31,233 (Provisional).
HDFC April 2022 futures traded at a premium of 15.95 points at 2400.85 (LTP) compared with spot closing of 2384.90. The numbers of contracts traded were 28,845 (Provisional).
Axis Bank April 2022 futures traded at a premium of 2.00 points at 763.95 (LTP) compared with spot closing of 761.95. The numbers of contracts traded were 28,724 (Provisional).
Tata Steel April 2022 futures traded at a premium of 8.85 points at 1316.35 (LTP) compared with spot closing of 1307.50. The numbers of contracts traded were 28,662 (Provisional).
Among, Nifty calls, 17500 SP from the April month expiry was the most active call with an addition of 7,570 units open interests. Among Nifty puts, 17000 SP from the April month expiry was the most active put with an addition of 5,656 units open interests. The maximum OI outstanding for Calls was at 17500 SP (31,809 units) and that for Puts was at 16000 SP (35,903 units). The respective Support and Resistance levels of Nifty are: Resistance 17,537.97 -- Pivot Point 17,486.58 -- Support -- 17,413.37.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for April month contract. The top five scrips with highest PCR on ABB (1.44), Power Grid (0.99), Sun TV Network (0.95), REC (0.81) and Canara Bank (0.74).
Among most active underlying, Reliance Industries witnessed an addition of 41,979 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 13,084 units of Open Interest in the April month futures contract, Axis Bank witnessed an addition of 9,473 units of Open Interest in the April month futures contract, HDFC Bank witnessed an addition of 8,968 units of Open Interest in the April month futures contract and HDFC witnessed an addition of 18,081 units of Open Interest in the April month futures contract (Provisional).
