S&P CNX -- Nifty gave powerful performance by surging over two percent on Tuesday, surpassing its psychological level of 17200. India VIX was down by 8.40%. Market made optimistic start, as traders took support with Crisil Ratings’ statement that India Inc's credit quality showed further improvement in April-September period with the ratio of upgrades to downgrades inching higher. Further, index maintained its upside, as foreign investors turned net buyers after a gap of eight days of being net sellers. The foreign portfolio investors bought equities worth 590.58, according to National Stock Exchange data.
Traders ignored United Nations Conference on Trade and Development (UNCTAD) in its latest report has said that India's economic growth is expected to decline to 5.7 per cent this year from 8.2 per cent in 2021, citing higher financing cost and weaker public expenditures. It further said India's GDP will further decelerate to 4.7 per cent growth in 2023. Market continued its firm trade till the end of the session. Traders took encouragement with Icra Ratings stating that credit quality of corporates has strengthened further in the first half of the current fiscal with rating upgrades being more than three times that of downgrades, carrying on with the momentum since early FY22.
All sectoral indices ended in green. The top gainers from the F&O segment were M&MFIN, IDFC First Bank and ZEEL. On the other hand, the top losers were Gujarat Gas, Power Grid Corporation of India and Gujarat State Petronet. 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 8.40% and reached 19.57. The 50 share Nifty up by 386.95 points or 2.29% to settle at 17,274.30.
Nifty October 2022 futures closed at 17306.00 on Tuesday, at a premium of 26.40 points over spot closing of 17279.60, while Nifty November 2022 futures ended at 17349.85, at a premium of 70.25 points over spot closing. Nifty October futures saw a contraction of 10,987 units, taking the total open interest (Contracts) to 2,41,040 units. The near month derivatives contract will expire on October 27, 2022 (provisional).
From the most active contracts, Infosys October 2022 futures traded at a discount of 9.00 points at 1419.00 (LTP) compared with spot closing of 1428.00. The numbers of contracts traded were 32,201 (provisional).
Reliance Industries October 2022 futures traded at a premium of 9.00 points at 2421.90 (LTP) compared with spot closing of 2412.90. The numbers of contracts traded were 29,287 (provisional).
TCS October 2022 futures traded at a discount of 3.00 points at 3094.00 (LTP) compared with spot closing of 3097.00. The numbers of contracts traded were 27,229 (provisional).
Adani Enterprises October 2022 futures traded at a premium of 18.00 points at 3247.00 (LTP) compared with spot closing of 3229.00. The numbers of contracts traded were 24,058 (provisional).
HDFC Bank October 2022 futures traded at a premium of 2.40 points at 1458.55 (LTP) compared with spot closing of 1456.15. The numbers of contracts traded were 18,599 (provisional).
Among, Nifty calls, 18000 SP from the October month expiry was the most active call with a contraction of 376 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with a contraction of 6,555 units open interests. The maximum OI outstanding for Calls was at 18000 SP (59,601 units) and that for Puts was at 16000 SP (56,929 units). The respective Support and Resistance levels of Nifty are: Resistance 17,335.30 -- Pivot Point 17,226.30 -- Support -- 17,165.30.
The Nifty Put Call Ratio (PCR) finally stood at (1.23) for October month contract. The top five scrips with highest PCR on Whirlpool (1.38), Grasim Industries (1.07), TVS Motor (0.99), JSW Steel (0.93) and Lupin (0.88).
Among most active underlying, Adani Enterprises witnessed a contraction of 66 units of Open Interest in the October month futures, Reliance Industries witnessed a contraction of 1,527 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 2,082 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 1,625 units of Open Interest in the October month futures and Adani Ports witnessed an addition of 248 units of Open Interest in the October month futures (Provisional).
