After making positive start, Nifty closed the day’s trade below its 17500 mark. Market settled lower for the third day in a row on Wednesday. Market made good start with the government data showing that the factory output rose 1.7 per cent in February, mainly on account of rise in the mining sector and power generation. The Index of Industrial Production (IIP) had declined 3.2 per cent in February 2021. Mining output rose 4.5 percent year-on-year in February and electricity was up by 4.5 percent. Market maintained its gains above neutral line, as Chief Economic Adviser V Anantha Nageswaran expressed hope that the private sector is expected to accelerate capital expenditure from the second half of the current fiscal and he also asserted that the economic situation is likely to improve during the year.
However, in afternoon trade, index slipped into red zone, as World Trade Organization (WTO) has downgraded its forecast for global GDP growth in 2022 to 2.8% from the previously expected 4.1%.Further, index extended its losses even after country's exports in March 2022 rose 19.76 per cent to $42.22 billion as compared to the year-ago period. In March 2021, exports stood at $35.26 billion. Finally, Nifty finished the session on somber note.
Most of the sectoral indices ended in red except FMCG, Metal and Pharma. The top gainers from the F&O segment were Chambal Fertilisers & Chemicals, IGL and ONGC. On the other hand, the top losers were Delta Corp, Balrampur Chini Mills and Can Fin Homes. 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 2.05% and reached 17.79. The 50 share Nifty down by 54.65 points or 0.31% to settle at 17,475.65.
Nifty April 2022 futures closed at 17506.05 (LTP) on Wednesday, at a premium of 30.40 points over spot closing of 17475.65, while Nifty May 2022 futures ended at 17553.85 (LTP), at a premium of 78.20 points over spot closing. Nifty April futures saw an addition of 16,064 units, taking the total outstanding open interest (contracts) to 2,01,745 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, HDFC Bank April 2022 futures traded at a premium of 7.30 points at 1471.30 (LTP) compared with spot closing of 1464.00. The numbers of contracts traded were 38,362 (Provisional).
Infosys April 2022 futures traded at a premium of 5.85 points at 1756.85 (LTP) compared with spot closing of 1751.00. The numbers of contracts traded were 35,422 (Provisional).
Reliance Industries April 2022 futures traded at a premium of 10.15 points at 2562.05 (LTP) compared with spot closing of 2551.90. The numbers of contracts traded were 20,350 (Provisional).
Ambuja Cements April 2022 futures traded at a premium of 1.20 points at 370.20 (LTP) compared with spot closing of 369.00. The numbers of contracts traded were 18,817 (Provisional).
ICICI Bank April 2022 futures traded at a discount of 0.40 points at 761.15 (LTP) compared with spot closing of 761.55. The numbers of contracts traded were 16,372 (Provisional).
Among, Nifty calls, 18000 SP from the April month expiry was the most active call with an addition of 6,312 units open interests. Among Nifty puts, 17500 SP from the April month expiry was the most active put with an addition of 8,619 units open interests. The maximum OI outstanding for Calls was at 18000 SP (60,087 units) and that for Puts was at 17500 SP (75,195 units). The respective Support and Resistance levels of Nifty are: Resistance 17,607.07 -- Pivot Point 17,532.23 -- Support -- 17,400.82.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for April month contract. The top five scrips with highest PCR on Adani Enterprises (0.92), Power Grid (0.84), HPCL (0.79), Ashok Leyland (0.77) and BEL (0.77).
Among most active underlying, HDFC Bank witnessed an addition of 5,862 units of Open Interest in the April month futures contract, Infosys witnessed an addition of 3,585 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 719 units of Open Interest in the April month futures contract, Reliance Industries witnessed an addition of 3,253 units of Open Interest in the April month futures contract and SBIN witnessed an addition of 106 units of Open Interest in the April month futures contract (Provisional).
