The local benchmark -- Nifty ended below 17050 mark on a day before monthly F&O expiry of April contracts. India VIX was up by 7.38%. Market started day on negative note, as traders were cautious with the International Monetary Fund’s (IMF) Asia and Pacific Department’s Acting Director Anne-Marie Gulde-Wolf stating that the surge in oil prices due to the Ukrainian war has pushed up inflation in India, which needs monetary tightening and measures to address structural weaknesses to improve growth potential.
Market further extended losses in afternoon deals amid a private report stating that the pandemic seems to have dented the prospects of beneficiaries hoping to enrol in minority schemes. While the fund utilisation under minority schemes had reached its peak in 2019-20, with the government spending Rs 6,575 crore, it has since declined.
Index managed to come off from day’s low point but continued to show its sluggish trade till the end even after CBDT Chairman J B Mohapatra’s statement that the net direct tax collection has registered a whopping 49.02 per cent growth to over Rs 14.09 lakh crore in the 2021-22 fiscal as the country's economy bounced back after being hit by the COVID-19 pandemic.
Most of the sectoral indices ended in red except Media. The top gainers from the F&O segment were Hero Motocorp, Aditya Birla Capital and Dr. Lal PathLabs. On the other hand, the top losers were Interglobe Aviation, Trent and Bajaj Finance. In the index option segment, maximum OI continues to be seen in the 17450 -17600 calls and 15900 -16150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 7.38% and reached 20.61. The 50 share Nifty down by 162.40 points or 0.94% to settle at 17,038.40.
Nifty April 2022 futures closed at 17059.05 (LTP) on Wednesday, at a premium of 20.65 points over spot closing of 17038.40, while Nifty May 2022 futures ended at 17083.90 (LTP), at a premium of 45.50 points over spot closing. Nifty April futures saw a contraction of 9,179 units, taking the total open interest (OI) to 1,13,158 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 discount of 4.15 points at 2771.85 (LTP) compared with spot closing of 2776.00. The numbers of contracts traded were 51,146 (Provisional).
Infosys April 2022 futures traded at a premium of 2.65 points at 1559.00 (LTP) compared with spot closing of 1556.35. The numbers of contracts traded were 36,314 (Provisional).
HDFC Bank April 2022 futures traded at a discount of 0.05 points at 1371.95 (LTP) compared with spot closing of 1372.00. The numbers of contracts traded were 36,157 (Provisional).
Tata Steel April 2022 futures traded at a discount of 0.10 points at 1248.90 (LTP) compared with spot closing of 1249.00. The numbers of contracts traded were 28,305 (Provisional).
ICICI Bank April 2022 futures traded at a premium of 1.65 points at 738.45 (LTP) compared with spot closing of 736.80. The numbers of contracts traded were 24,176 (Provisional).
Among, Nifty calls, 17100 SP from the April month expiry was the most active call with an addition of 90,095 units open interests. Among Nifty puts, 17000 SP from the April month expiry was the most active put with an addition of 50,193 units open interests. The maximum OI outstanding for Calls was at 17500 SP (1,73,704 units) and that for Puts was at 17000 SP (2,00,939 units). The respective Support and Resistance levels of Nifty are: Resistance 17,113.25 -- Pivot Point 17,035.85 -- Support -- 16,961.00.
The Nifty Put Call Ratio (PCR) finally stood at (0.76) for April month contract. The top five scrips with highest PCR on ACC (1.30), Adani Enterprises (1.26), Hero Motocorp (1.23), MRF (1.19) and Biocon (1.14).
Among most active underlying, Reliance Industries witnessed an addition of 4,636 units of Open Interest in the April month futures contract, HDFC Bank witnessed a contraction of 3,918 units of Open Interest in the April month futures contract, ICICI Bank witnessed a contraction of 1,815 units of Open Interest in the April month futures contract, Adani Ports witnessed a contraction of 99 units of Open Interest in the April month futures contract and Adani Enterprises witnessed an addition of 1,962 units of Open Interest in the April month futures contract (Provisional).
