Nifty extends northward journey for third straight day

S&P CNX Nifty extended its northward journey for third straight day and ended session above a percent on Tuesday amid falling crude oil prices. India VIX was down by 5.23%. Index made optimistic start as traders took support with RBI Monetary Policy Committee (MPC) member Jayanth R Varma’s statement that ‘No doubt inflation will come down. Because we have done monetary policy tightening. That tightening will have its impact. The monetary policy takes, you know, five to six quarters to have its impact and cool prices’. Traders took a note of report that the Reserve Bank of India (RBI) in its monthly bulletin said that India is poised to consolidate and accelerate the economic recovery over the rest of the year and the fight against inflation will be 'dogged and prolonged'. The bulletin said that the momentum of real GDP growth is expected to shed the drag embedded in the NSO’s estimates for the first quarter of 2022-23 and move into positive territory in the remaining quarters.

In afternoon session, market sustained its upward trend, as traders remain energized after new Multidimensional Poverty Index (MPI) released jointly by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford showed that the number of people living below the poverty line in India decreased by 415 million between 2005-06 and 2019-21. Market continued the gaining momentum till the end of the session even after Prime Minister Narendra Modi expressed concern over the huge edible oil and fertilisers import bill, which is putting pressure on the exchequer, saying it is time to work in mission mode to make India self-reliant and reduce import dependence.

All sectoral indices ended in green. The top gainers from the F&O segment were BHEL, Polycab India and TVS Motor Company. On the other hand, the top losers were Samvardhana Motherson International, Navin Fluorine International and Aarti Industries. 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 5.23% and reached 17.45. The 50 share Nifty up by 175.15 points or 1.01% to settle at 17,486.95.

Nifty October 2022 futures closed at 17507.90 (LTP) on Tuesday, at a premium of 20.95 points over spot closing of 17486.95, while Nifty November 2022 futures ended at 17544.95 (LTP) , at a premium of 58.00 points over spot closing. Nifty October futures saw a contraction of 9,137 units, taking the total open interest (contracts) to 2,44,554 units. The near month derivatives contract will expire on October 27, 2022. (Provisional)

From the most active contracts, Reliance Industries October 2022 futures traded at a premium of 7.55 points at 2460.90 (LTP) compared with spot closing of 2453.35. The numbers of contracts traded were 40,893. (Provisional)

Adani Ports October 2022 futures traded at a premium of 1.20 points at 812.00 (LTP) compared with spot closing of 810.80. The numbers of contracts traded were 36,783. (Provisional)

HDFC Bank October 2022 futures traded at a premium of 1.90 points at 1444.75 (LTP) compared with spot closing of 1442.85. The numbers of contracts traded were 31,612. (Provisional)

ZEEL October 2022 futures traded at a premium of 0.25 points at 271.55 (LTP) compared with spot closing of 271.30. The numbers of contracts traded were 27,346. (Provisional)

Infosys October 2022 futures traded at a discount of 11.50 points at 1492.50 (LTP) compared with spot closing of 1504.00. The numbers of contracts traded were 23,493.  (Provisional)

Among, Nifty calls, 18000 SP from the October month expiry was the most active call with an addition of 833 units open interests. Among Nifty puts, 17500 SP from the October month expiry was the most active put with an addition of 21,624 units open interests. The maximum OI outstanding for Calls was at 18000 SP (90,392 units) and that for Puts was at 17000 SP (77,300 units). The respective Support and Resistance levels of Nifty are: Resistance 17,531.82 -- Pivot Point 17,482.93 -- Support -- 17,438.07.

The Nifty Put Call Ratio (PCR) finally stood at (1.10) for October month contract. The top five scrips with highest PCR on Canara Bank (1.03), TVS Motors (0.94), IDFC (0.93), Bank of Baroda (0.92) and Axis Bank (0.88).

Among most active underlying, Adani Ports Bank witnessed an addition of 4,309 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 1,853 units of Open Interest in the October month futures, Reliance Industries witnessed an addition of 679 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 5,323 units of Open Interest in the October month futures and ZEEL witnessed an addition of 3,414 units of Open Interest in the October month futures. (Provisional)