S&P CNX Nifty resumed southward journey on Thursday amid weekly F&O expiry. India VIX was up by 0.57%. Market made negative start, as trader were cautious after India's retail inflation spiked to 7.41% in September, mainly due to costlier food items. For the ninth month in a row, retail inflation has remained above the Reserve Bank of India's tolerance level of 6%. Index extended its losses to trade lower, as India's industrial growth, as per the Index of Industrial Production (IIP), slid to an 18-month low of -0.8% in August from 2.2% in July. Globally, investor await the data on U.S. consumer price inflation later in the day. Sentiment weakened in afternoon trade, as rating agency Crisil's research wing in its latest report stated that India Inc is likely to report a three per cent year-on-year fall in profits for the July-September period (Q2FY23). This fall in profitability will be the fourth straight quarter of the decline in profits for the listed companies. Profitability is seen declining 300 basis points (bps) due to elevated commodity prices.
In late afternoon session, market trimmed some of losses, as Finance Minister Nirmala Sitharaman said her Budget for the next financial year will be ‘very carefully structured’ to help the economy sustain growth momentum and rein in prices. She identified high energy prices among the biggest problems facing the Indian economy in the near future. But, market unable to wipe out all losses and ended session below 17050 mark.
Most of the sectoral indices ended in red except Media, Metal and Pharma. The top gainers from the F&O segment were HCL Tech, National Aluminium Company and Dr. Lal PathLabs. On the other hand, the top losers were Escorts, India Cements and Wipro. 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 increased by 0.57% and reached 20.29. The 50 share Nifty down by 109.25 points or 0.64% to settle at 17,014.35.
Nifty October 2022 futures closed at 17008.00 (LTP) on Thursday, at a discount of 6.35 points over spot closing of 17014.35, while Nifty November 2022 futures ended at 17045.00 (LTP), at a premium of 30.65 points over spot closing. Nifty October futures saw an addition of 14,841 units, taking the total open interest (Contracts) to 2,80,562 units. The near month derivatives contract will expire on October 27, 2022. (Provisional)
From the most active contracts, Wipro October 2022 futures traded at a discount of 0.25 points at 379.35 (LTP) compared with spot closing of 379.60. The numbers of contracts traded were 53,135. (Provisional)
Infosys October 2022 futures traded at a discount of 13.00 points at 1409.00 (LTP) compared with spot closing of 1422.00. The numbers of contracts traded were 29,019. (Provisional)
HCL Tech October 2022 futures traded at a discount of 7.00 points at 974.05 (LTP) compared with spot closing of 981.05. The numbers of contracts traded were 20,176. (Provisional)
TCS October 2022 futures traded at a discount of 2.10 points at 3097.90 (LTP) compared with spot closing of 3100.00. The numbers of contracts traded were 18,994. (Provisional)
Reliance Industries October 2022 futures traded at a premium of 5.55 points at 2386.55 (LTP) compared with spot closing of 2381.00. The numbers of contracts traded were 18,845. (Provisional)
Among, Nifty calls, 17100 SP from the October month expiry was the most active call with an addition of 2,054 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with an addition of 14,167 units open interests. The maximum OI outstanding for Calls was at 18000 SP (79,197 units) and that for Puts was at 17000 SP (97,010 units). The respective Support and Resistance levels of Nifty are: Resistance 17,098.82 -- Pivot Point 17,027.88 -- Support -- 16,943.42.
The Nifty Put Call Ratio (PCR) finally stood at (1.11) for October month contract. The top five scrips with highest PCR on RBL Bank (0.90), Grasim Industries (0.86), JSW Steel (0.84), Axis Bank (0.81) and M&MFIN (0.81).
Among most active underlying, Wipro witnessed an addition of 18,770 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 2,870 units of Open Interest in the October month futures, Axis Bank witnessed a contraction of 431 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 4,373 units of Open Interest in the October month futures and HCL Tech witnessed an addition of 1,650 units of Open Interest in the October month futures. (Provisional)
