Nifty extended its southward journey on Tuesday and ended the session below 17550 mark ahead of domestic and U.S. inflation data due later in the day. Losses in oil & gas, IT and metal shares pulled the market lower. Market made negative start with the research wing of rating agency Crisil in its latest report said that companies are not able to pass on the pressure from rising input costs to buyers, and this is likely to result in a compression in corporate profit margins for the March quarter (Q4FY22). It said operating profit margins for companies are set to fall by as much as 3 percentage points compared to the year-ago period, and up to 0.60 per cent as compared to the preceding December quarter. Further, index added more losses, as World Trade Organization projected that Russia's war in Ukraine could almost halve world trade growth this year and drag down global GDP growth too. However, in late afternoon session, market trimmed its some losses with the Reserve Bank of India’s (RBI) latest data showing that India Inc's direct overseas investment increased 8.5 per cent year-on-year to $3.34 billion in March 2022. But market failed to erase all losses and finished the day’s trade with the cut of above half percent.
Most of the sectoral indices ended in red except Bank and Financial Services. The top gainers from the F&O segment were Bandhan Bank, P I Industries and PVR. On the other hand, the top losers were Coal India, Hindalco Industries and Birlasoft. 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 decreased by 0.61% and reached 18.16. The 50 share Nifty down by 144.65 points or 0.82% to settle at 17,530.30.
Nifty April 2022 futures closed at 17561.30 (LTP) on Tuesday, at a premium of 31.00 points over spot closing of 17530.30, while Nifty May 2022 futures ended at 17613.00 (LTP), at a premium of 82.70 points over spot closing. Nifty April futures saw an addition of 22,240 units, taking the total outstanding open interest (OI) to 2,05,407 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, TCS April 2022 futures traded at a premium of 15.00 points at 3701.00 (LTP) compared with spot closing of 3686.00. The numbers of contracts traded were 39,437 (Provisional).
HDFC Bank April 2022 futures traded at a premium of 7.45 points at 1502.35 (LTP) compared with spot closing of 1494.90. The numbers of contracts traded were 35,509 (Provisional).
Infosys April 2022 futures traded at a premium of 6.10 points at 1744.00 (LTP) compared with spot closing of 1737.90. The numbers of contracts traded were 32,873 (Provisional).
Reliance Industries April 2022 futures traded at a premium of 10.15 points at 2570.15 (LTP) compared with spot closing of 2560.00. The numbers of contracts traded were 25,598 (Provisional).
Tata Steel April 2022 futures traded at a premium of 4.80 points at 1326.80 (LTP) compared with spot closing of 1322.00. The numbers of contracts traded were 22,648 (Provisional).
Among, Nifty calls, 18000 SP from the April month expiry was the most active call with an addition of 5,834 units open interests. Among Nifty puts, 17500 SP from the April month expiry was the most active put with an addition of 8,812 units open interests. The maximum OI outstanding for Calls was at 18000 SP (54,034 units) and that for Puts was at 17500 SP (67,957 units). The respective Support and Resistance levels of Nifty are: Resistance 17,602.95 -- Pivot Point 17,522.65 -- Support -- 17,450.00.
The Nifty Put Call Ratio (PCR) finally stood at (1.34) for April month contract. The top five scrips with highest PCR on Adani Enterprises (0.92), Power Grid (0.90), Ashok Leyland (0.84), AU Small Finance Bank (0.81) and Hindustan Petroleum Corporation (0.79).
Among most active underlying, HDFC Bank witnessed an addition of 6,819 units of Open Interest in the April month futures contract, TCS witnessed a contraction of 1,700 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 390 units of Open Interest in the April month futures contract, Tata Power witnessed an addition of 136 units of Open Interest in the April month futures contract and Infosys witnessed an addition of 8,401 units of Open Interest in the April month futures contract (Provisional).
