Nifty ends lower amid monthly F&O expiry

After making positive start, Nifty closed day’s trade below 16850 mark amid monthly F&O expiry. India VIX was down by 3.58%. Market made positive start after rating agency Icra retained its India’s previous growth forecast of 7.2 per cent for the current fiscal, citing revival in contact-intensive services and a pick-up in government and private expenditure. It said growth is expected to pick up to pre-Covid levels on the back of pent-up demand. Market continued to trade in green territory with a report that Goods and services tax (GST) collections in September are likely to be about Rs 1.45 trillion, and the monthly average mop-up in FY23 could be around Rs 1.55 trillion. However, markets failed to protect gains and slip into red zone with private report stated that India’s current account deficit (CAD) is expected to more than double sequentially to over $30 billion in the first quarter of financial year 2022-23 (Q1FY23) to rise above 3 per cent of gross domestic product (GDP) from $13.4 billion, or 1.5 per cent of GDP, in the previous quarter. Market continued its weak trade till end and finished session below neutral line.

Traders were seen piling positions in FMCG, Metal and Media sector while selling was witnessed in IT, Bank and Auto sector stocks. The top gainers from the F&O segment were Abbott India, PVR and Tata Chemicals. On the other hand, the top losers were Asian Paints, Vodafone Idea and Aarti Industries. In the index option segment, maximum OI continues to be seen in the 17900 -18200 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 decreased by 3.58% and reached 21.30. The 50 share Nifty down by 40.50 points or 0.24% to settle at 16,818.10.

Nifty October 2022 futures closed at 16850.00 (LTP) on Thursday, at a premium of 31.90 points over spot closing of 16818.10, while Nifty November 2022 futures ended at 16900.00 (LTP), at a premium of 81.90 points over spot closing. Nifty October futures saw a contraction of 18,931 units, taking the total open interest (contracts) to 82,581 units. The near month derivatives contract will expire on October 27, 2022 (Provisional).

From the most active contracts, Tata Motors October 2022 futures traded at a premium of 1.10 points at 405.10 (LTP) compared with spot closing of 404.00. The numbers of contracts traded were 586 (Provisional).

Reliance Industries October 2022 futures traded at a premium of 13.20 points at 2341.20 (LTP) compared with spot closing of 2328.00. The numbers of contracts traded were 303 (Provisional).

Tata Steel October 2022 futures traded at a premium of 0.35 points at 97.30 (LTP) compared with spot closing of 96.95. The numbers of contracts traded were 139 (Provisional).

Infosys October 2022 futures traded at a discount of 12.05 points at 1389.45 (LTP) compared with spot closing of 1401.50. The numbers of contracts traded were 121 (Provisional).

SBIN October 2022 futures traded at a premium of 3.50 points at 527.50 (LTP) compared with spot closing of 524.00. The numbers of contracts traded were 75 (Provisional).

Among, Nifty calls, 17000 SP from the October month expiry was the most active call with an addition of 14,422 units open interests. Among Nifty puts, 16000 SP from the October month expiry was the most active put with an addition of 6,491 units open interests. The maximum OI outstanding for Calls was at 18000 SP (48,619 units) and that for Puts was at 16000 SP (51,415 units). The respective Support and Resistance levels of Nifty are: Resistance 16,966.57 -- Pivot Point 16,877.58 -- Support -- 16,729.12.

The Nifty Put Call Ratio (PCR) finally stood at (1.20) for October month contract. The top five scrips with highest PCR on Grasim Industries (2.48), Whirlpool (2.16), P I Industries (2.00), IDFC (1.76) and Intellect Design Arena (1.74).

Among most active underlying, Reliance Industries witnessed an addition of 44,898 units of Open Interest in the October month futures, Adani Enterprises witnessed an addition of 6,850 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 12,421 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 16,066 units of Open Interest in the October month futures and ZEEL witnessed an addition of 17,194 units of Open Interest in the October month futures (Provisional).