Nifty resumes northward journey on Wednesday

S&P CNX Nifty closed Wednesday’s session with gains of over half a percent amid fall in crude oil prices. India VIX was down by 1.53%. Market made positive start, as Krishnamurthy Subramanian, Executive Director (India)- International Monetary Fund Designate, said India has emerged as a 'positive spot' in the world economy, due to the well-designed policy responses that were implemented during the COVID crisis. Further, market turned volatile for small time, as traders were cautious after International Monetary Fund (IMF) in its annual World Economic Outlook report said outlook for India is growth of 6.8 per cent in 2022 - a 0.6 percentage point downgrade since the July forecast, reflecting a weaker-than-expected outturn in the second quarter and more subdued external demand. Globally, persistent worries over economic growth-inflation dynamics and renewed geopolitical tensions following attacks by Russia on major Ukrainian cities.

However, in afternoon trade, index extended its gains after International Monetary Fund (IMF) praised the Reserve bank of India (RBI) for tightening the monetary policy to curb inflation in the country. In late afternoon session, market touched its day’s high point. Sentiments remained positive after Finance Minister Nirmala Sitharaman exuded confidence on India's relative and absolute growth performance in the rest of the decade and forecast the country's growth rate to be around 7% this financial year. Finally, Nifty ended session above 17100 mark.

Most of the sectoral indices ended in green except Media. The top gainers from the F&O segment were IDFC, City Union Bank and Manappuram Finance. On the other hand, the top losers were ZEEL, Syngene International and Laurus Labs. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -17150 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.53% and reached 20.18. The 50 share Nifty up by 140.05 points or 0.82% to settle at 17,123.60.

Nifty October 2022 futures closed at 17121.00 (LTP) on Wednesday, at a discount of 2.60 points over spot closing of 17123.60, while Nifty November 2022 futures ended at 17163.20 (LTP), at a premium of 39.60 points over spot closing. Nifty October futures saw a contraction of 0.01 million (mn) units, taking the total open interest (contracts) to 2,73,587 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 12.75 points at 1417.25 (LTP) compared with spot closing of 1430.00. The numbers of contracts traded were 28,209. (Provisional)

Wipro October 2022 futures traded at a premium of 1.05 points at 409.60 (LTP) compared with spot closing of 408.55. The numbers of contracts traded were 22,739. (Provisional)

Axis Bank October 2022 futures traded at a premium of 1.15 points at 808.95 (LTP) compared with spot closing of 807.80. The numbers of contracts traded were 21,122. (Provisional)

TCS October 2022 futures traded at a discount of 4.00 points at 3095.00 (LTP) compared with spot closing of 3099.00. The numbers of contracts traded were 19,231. (Provisional)

Tata Motors October 2022 futures traded at a discount of 0.45 points at 396.30 (LTP) compared with spot closing of 396.75. The numbers of contracts traded were 17,254. (Provisional)

Among, Nifty calls, 18000 SP from the October month expiry was the most active call with an addition of 876 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with an addition of 10,422 units open interests. The maximum OI outstanding for Calls was at 18000 SP (72,715 units) and that for Puts was at 17000 SP (83,148 units). The respective Support and Resistance levels of Nifty are: Resistance 17,190.62 -- Pivot Point 17,075.33 -- Support -- 17,008.32.

The Nifty Put Call Ratio (PCR) finally stood at (1.12) for October month contract. The top five scrips with highest PCR on RBL Bank (0.92), Axis Bank (0.89), JSW Steel (0.87), IDFC (0.82) and Grasim Industries (0.80).

Among most active underlying, Adani Enterprises witnessed an addition of 197 units of Open Interest in the October month futures, Axis Bank witnessed an addition of 5,150 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 2,298 units of Open Interest in the October month futures, Ambuja Cements witnessed a contraction of 566 units of Open Interest in the October month futures, Infosys witnessed an addition of 748 units of Open Interest in the October month futures. (Provisional)