Nifty continued its downward trading on Monday and ended the session with cut of above one and half a percent. Market made a negative start, as the World Bank cut its economic growth forecast for India and the whole South Asian region, citing worsening supply bottlenecks and rising inflation risks caused by the Ukraine crisis. The international lender lowered its growth estimate for India to 8% from 8.7% for the current fiscal year to March, 2023. Further, index extended its losses, as India’s March wholesale price index-based inflation rose to 14.55 per cent as compared to 13.11 per cent in last month. According to the data released by the industry department, the high rate of inflation in March 2022 was primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, owing to disruption in global supply chain caused by Russia-Ukraine conflict.
Traders overlooked report where India’s merchandise exports rose 19.76 per cent to $42.22 billion in March 2022 as compared to $35.26 billion in March 2021, on account of healthy performance by sectors such as petroleum products, engineering, and leather. The trade deficit widened to $18.51 billion in March 2022 from $13.64 billion from the year-ago period. Market continued its down fall till the end and closed the day’s trade below its 17200 mark.
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, NTPC and Torrent Power. On the other hand, the top losers were Birlasoft, Tata Power Company and Infosys. In the index option segment, maximum OI continues to be seen in the 17800 -18150 calls and 16900 -17100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 8.71% and reached 19.34. The 50 share Nifty down by 302.00 points or 1.73% to settle at 17,173.65.
Nifty April 2022 futures closed at 17243.95 (LTP) on Monday, at a premium of 70.30 points over spot closing of 17173.65, while Nifty May 2022 futures ended at 17288.00 (LTP), at a premium of 114.35 points over spot closing. Nifty April futures saw an addition of 20,592 units, taking the total open interest (contracts) to 2,12,694 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, Infosys April 2022 futures traded at a premium of 1.70 points at 1624.00 (LTP) compared with spot closing of 1622.30. The numbers of contracts traded were 79,587 (Provisional).
HDFC Bank April 2022 futures traded at a premium of 8.20 points at 1405.70 (LTP) compared with spot closing of 1397.50. The numbers of contracts traded were 47,797 (Provisional).
Tata Steel April 2022 futures traded at a premium of 3.35 points at 1343.60 (LTP) compared with spot closing of 1340.25. The numbers of contracts traded were 20,878 (Provisional).
TCS April 2022 futures traded at a premium of 10.35 points at 3542.15 (LTP) compared with spot closing of 3531.80. The numbers of contracts traded were 19,967 (Provisional).
HDFC April 2022 futures traded at a premium of 9.35 points at 2273.35 (LTP) compared with spot closing of 2264.00. The numbers of contracts traded were 19,718 (Provisional).
Among, Nifty calls, 17200 SP from the April month expiry was the most active call with an addition of 19,895 units open interests. Among Nifty puts, 17000 SP from the April month expiry was the most active put with an addition of 13,693 units open interests. The maximum OI outstanding for Calls was at 18000 SP (62,113 units) and that for Puts was at 17000 SP (60,489 units). The respective Support and Resistance levels of Nifty are: Resistance 17,251.65 -- Pivot Point 17,159.75 -- Support -- 17,081.75.
The Nifty Put Call Ratio (PCR) finally stood at (1.20) for April month contract. The top five scrips with highest PCR on Adani Enterprises (0.99), Bharat Electronics (0.85), Power Grid (0.83), RBL Bank (0.77) and Ashok Leyland (0.75).
Among most active underlying, Infosys witnessed an addition of 7,704 units of Open Interest in the April month futures contract, HDFC Bank witnessed an addition of 9,406 units of Open Interest in the April month futures contract, Tata Power witnessed an addition of 2,119 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 2,746 units of Open Interest in the April month futures contract and HDFC witnessed an addition of 3,087 units of Open Interest in the April month futures contract (Provisional).
