Indian equity benchmark -- Nifty -- ended in deep red on Wednesday’s trading session with the losses of 0.83%. After a negative start of the day, index remained lower during the trading session, impacted with a private report stating that the Reserve Bank of India will delay its first interest rate rise by at least four months to August at the earliest, as the central bank must now start worrying about inflation.
Traders were cautious, after the Reserve Bank said it has decided not to activate the countercyclical capital buffer at this point in time as it is not required. Continuous rise in petrol and diesel prices weighed down on the market sentiments. Oil companies increased the price of petrol and diesel in Delhi by 80 paise each, marking the 14th such hike in two weeks. Petrol costs Rs 105.41 and diesel Rs 96.67 per litre after the hike.
Market participants failed to get any sense of relief with a private survey showing that India's services sector expanded at its fastest pace so far this year in March as an easing of COVID-19 restrictions boosted demand, but elevated inflationary pressures clouded business confidence. The S&P Global India Services Purchasing Managers' Index rose to 53.6 in March from 51.8 in February.
Most of the sectoral indices ended in red except Metal and PSU Bank. The top gainers from the F&O segment were The Indian Hotels Company, Tata Power and SAIL. On the other hand, the top losers were Mphasis, Rain Industries and Marico. In the index option segment, maximum OI continues to be seen in the 17800 -18150 calls and 17400 -17600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.89% and reached 19.02. The 50 share Nifty down by 149.75 points or 0.83% to settle at 17,807.65.
Nifty April 2022 futures closed at 17860.20 (LTP) on Wednesday, at a premium of 52.55 points over spot closing of 17807.65, while Nifty May 2022 futures ended at 17860.20 (LTP), at a premium of 52.55 points over spot closing. Nifty February futures saw a contraction of 7,208 units, taking the total outstanding open interest (OI) to 2,11,423 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, Tata Power April 2022 futures traded at a premium of 1.00 points at 289.85 (LTP) compared with spot closing of 288.85. The numbers of contracts traded were 39,946 (Provisional).
Tata Steel April 2022 futures traded at a premium of 5.45 points at 1375.45 (LTP) compared with spot closing of 1370.00. The numbers of contracts traded were 38,888 (Provisional).
HDFC Bank April 2022 futures traded at a premium of 4.45 points at 1554.95 (LTP) compared with spot closing of 1550.50. The numbers of contracts traded were 34,386 (Provisional).
Reliance Industries April 2022 futures traded at a premium of 14.90 points at 2630.90 (LTP) compared with spot closing of 2616.00. The numbers of contracts traded were 25,946 (Provisional).
Infosys April 2022 futures traded at a premium of 5.25 points at 1835.25 (LTP) compared with spot closing of 1830.00. The numbers of contracts traded were 24,566 (Provisional).
Among, Nifty calls, 17900 SP from the April month expiry was the most active call with an addition of 7,564 units open interests. Among Nifty puts, 17500 SP from the April month expiry was the most active put with an addition of 9,157 units open interests. The maximum OI outstanding for Calls was at 18000 SP (44,056 units) and that for Puts was at 17500 SP (42,290 units). The respective Support and Resistance levels of Nifty are: Resistance 17,879.15 -- Pivot Point 17,829.50 -- Support -- 17,758.00.
The Nifty Put Call Ratio (PCR) finally stood at (1.15) for April month contract. The top five scrips with highest PCR on Power Grid (1.08), Adani Enterprises (0.93), Nestle India (0.90), Hero Motocorp (0.81) and Jindal Steel (0.80).
Among most active underlying, Tata Power witnessed an addition of 2,704 units of Open Interest in the April month futures contract, HDFC Bank witnessed an addition of 5,049 units of Open Interest in the April month futures contract, Tata Steel witnessed an addition of 6,905 units of Open Interest in the April month futures contract Tata motors witnessed an addition of 3,325 units of Open Interest in the April month futures contract and Reliance Industries witnessed an addition of 8,011 units of Open Interest in the April month futures contract (Provisional).
