Nifty ends higher on Friday

S&P CNX Nifty ended last trading day of week with hefty gains amid positive global cues. India VIX was down by 10.01%. Market made a positive start after Union Finance Minister Nirmala Sitharaman said that India is setting the global benchmarks on the digital front and that there is a sense of confidence in the country that it will be able to face geopolitical and economic uncertainties and still perform. Traders paid no heed towards reports that US consumer prices advanced to a 40-year high in September, pressuring the Federal Reserve to raise interest rates even more aggressively to stamp out persistent inflation before it becomes entrenched. Further, index extended its gains to trade higher with report that S&P Global Ratings said growth in large Asia Pacific economies like China, India and Indonesia will be less affected as their economies are more domestically oriented.

Market maintained its gaining momentum in afternoon session, as India's inflation based on the Wholesale Price Index (WPI) crashed to an 18-month low of 10.7 percent in September. WPI inflation was 12.41 percent in August. In September 2021, it stood at 11.80 percent. However, in last hour of trade, market cut some of its gains and ended the session above its crucial 17150 level. Traders overlooked report stating that reflecting the overall decline in funds flows into startups especially since the Ukraine war, private equity investments plunged 77.5 per cent to $3.84 billion in the September quarter.

Most of the sectoral indices ended in green except Media, Metal and Auto. The top gainers from the F&O segment were Gujarat Narmada Valley Fertlzrs&Chms, Federal Bank and Indraprastha Gas. On the other hand, the top losers were National Aluminium Company, India Cements and Indiabulls Housing Finance. 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 10.01% and reached 18.26. The 50 share Nifty up by 171.35 points or 1.01% to settle at 17,185.70.

Nifty October 2022 futures closed at 17209.75 on Friday, at a premium of 24.05 points over spot closing of 17185.70, while Nifty November 2022 futures ended at 17249.00, at a premium of 63.30 points over spot closing. Nifty October futures saw a contraction of 11,778 units, taking the total open interest (Contracts) to 2,61,466 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 12.10 points at 1464.90 (LTP) compared with spot closing of 1477.00. The numbers of contracts traded were 75,094. (Provisional)

HDFC Bank October 2022 futures traded at a premium of 3.00 points at 1449.00 (LTP) compared with spot closing of 1446.00. The numbers of contracts traded were 35,597. (Provisional)

Reliance Industries October 2022 futures traded at a premium of 8.20 points at 2379.95 (LTP) compared with spot closing of 2371.75. The numbers of contracts traded were 27,710. (Provisional)

TCS October 2022 futures traded at a discount of 4.50 points at 3096.50 (LTP) compared with spot closing of 3101.00. The numbers of contracts traded were 25,440. (Provisional)

Wipro October 2022 futures traded at a discount of 0.30 points at 377.50 (LTP) compared with spot closing of 377.80. The numbers of contracts traded were 22,088. (Provisional)

Among, Nifty calls, 17300 SP from the October month expiry was the most active call with an addition of 12,347 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with a contraction of 23,323 units open interests. The maximum OI outstanding for Calls was at 18000 SP (84,735 units) and that for Puts was at 17000 SP (74,403 units). The respective Support and Resistance levels of Nifty are: Resistance 17,299.58 -- Pivot Point 17,234.67 -- Support -- 17,120.78.

The Nifty Put Call Ratio (PCR) finally stood at (1.10) for October month contract. The top five scrips with highest PCR on RBL Bank (0.95), Max Financial Services (0.89), Grasim Industries (0.88), Havells India (0.83) and Axis Bank (0.83).

Among most active underlying, Infosys witnessed a contraction of 3,473 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 2,515 units of Open Interest in the October month futures, Federal Bank witnessed an addition of 1,382 units of Open Interest in the October month futures, ICICI Bank witnessed a contraction of 1,494 units of Open Interest in the October month futures and Reliance Industries witnessed an addition of 1,559 units of Open Interest in the October month futures. (Provisional)