Indian equity benchmark -- Nifty -- ended the last trading day of the week in green with gains of 0.21%. After a strong start, markets traded higher during the day, as the Reserve Bank of India (RBI) in its latest report on ‘the private corporate sector performance’ has showed that the manufacturing sector recorded impressive sales growth of 41.6 per cent (y-o-y) in Q1 FY23, aided by both volume and price effects along with broad based demand expansion across industries. Besides, sales growth (y-o-y) of listed private non-financial companies surged to 41 per cent in Q1 FY23 from 22.3 per cent in the previous quarter.
In the last hour of the trade, index fell in red but soon staged recovery to settle in green, taking support with a report stating that the Income-tax department has collected around Rs 28 crore in taxes after about 1 lakh returns were filed by taxpayers under the newly introduced return filing form called ITR-U that was notified this year as part of the Budget 2022-23. Some support also came in as RBI data showed bank credit growth accelerated to 14.2 per cent in the quarter ended June 2022 from 6 per cent in the same period of the previous year. Sentiments remained optimistic, as Services Export Promotion Council (SEPC) said that implementation of the proposed India-UK free trade agreement will help to boost the country's services exports, particularly from legal, accounting and auditing sectors.
Traders were seen piling up positions in Metal, PSU Bank and Auto stocks, while selling was witnessed in Media, Realty and Pvt Bank. The top gainers from the F&O segment were Chambal Fertilizers & Chemicals, Escorts Kubota and Jindal Steel & Power. On the other hand, the top losers were Eicher Motors, Bandhan Bank and Gujarat Gas. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 15900 -16100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 6.92% and reached 18.21. The 50 share Nifty up by 36.45 points or 0.21% to settle at 17,558.90.
Nifty September 2022 futures closed at 17678.00 (LTP) on Friday, at a premium of 119.10 points over spot closing of 17558.90, while Nifty October 2022 futures ended at 17734.00 (LTP), at a premium of 175.10 points over spot closing. Nifty September futures saw an addition of 5,219 units, taking the total open interest (OI) to 2,17,484 units. The near month derivatives contract will expire on September 29, 2022 (Provisional).
From the most active contracts, Reliance Industries September 2022 futures traded at a premium of 18.75 points at 2641.75 (LTP) compared with spot closing of 2623.00. The numbers of contracts traded were 23,261 (Provisional).
Kotak Mahindra Bank September 2022 futures traded at a premium of 14.20 points at 1919.95 (LTP) compared with spot closing of 1905.75. The numbers of contracts traded were 21,667 (Provisional).
HDFC Bank September 2022 futures traded at a premium of 9.95 points at 1475.95 (LTP) compared with spot closing of 1466.00. The numbers of contracts traded were 16,629 (Provisional).
Piramal Enterprises September 2022 futures traded at a premium of 6.60 points at 1984.60 (LTP) compared with spot closing of 1978.00. The numbers of contracts traded were 15,977 (Provisional).
SBIN September 2022 futures traded at a premium of 4.40 points at 528.70 (LTP) compared with spot closing of 524.30. The numbers of contracts traded were 15,342 (Provisional).
Among, Nifty calls, 18700 SP from the September month expiry was the most active call with an addition of 5,480 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 4,856 units open interests. The maximum OI outstanding for Calls was at 18000 SP (38,130 units) and that for Puts was at 16000 SP (68,438 units). The respective Support and Resistance levels of Nifty are: Resistance 17,656.72 -- Pivot Point 17,588.03 -- Support -- 17,490.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.49) for September month contract. The top five scrips with highest PCR on RBL Bank (0.93), Asian Paints (0.92), IPCA Laboratories (0.86), Whirlpool Of India (0.85) and Abbott India (0.84).
Among most active underlying, Adani Enterprises witnessed a contraction of 620 units of Open Interest in the September month futures, Kotak Mahindra Bank witnessed an addition of 4,087 units of Open Interest in the September month futures, Reliance Industries witnessed an addition of 3,730 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 575 units of Open Interest in the September month futures and Adani Ports witnessed an addition of 1,213 units of Open Interest in the September month futures (provisional).
