Buying in late trade takes Nifty above 17550 mark

S&P CNX -- Nifty managed to end session in positive territory on Thursday, extending its gains for fifth straight day. India VIX was down by 1.45%. Index made negative start, as traders got cautious after rupee opened at record low of 83.05 against the US dollar from its previous close of 83.00 on Wednesday. Besides, foreign institutional investors (FIIs) net offloaded shares worth Rs 453.91 crore on Wednesday (October 19), according to the provisional data available on the NSE. Further, index continued to trade lower as private report stated that India's economy will grow well below its potential over the next two years, with inflation staying above the mid-point of the Reserve Bank of India's tolerance band despite recent interest rate rises. Moreover, higher treasury yields continued jitters over sharp rate hikes by the Federal Reserve.

However, in late afternoon session, market cut all of its losses to end higher, as traders took support with RBI Monetary Policy Committee (MPC) member Ashima Goyal’s statement that the efforts of the Reserve Bank to contain price rise by repeatedly increasing interest rates will help in containing inflation, which is likely to fall below 6 per cent next year. Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery.

Most of the sectoral indices ended in green except Bank, Realty and Consumer Durables. The top gainers from the F&O segment were UPL, BSOFT and JK Cement. On the other hand, the top losers were ABB, Indusind Bank and AU Small Finance Bank. 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 1.45% and reached 17.23. The 50 share Nifty up by 51.70 points or 0.30% to settle at 17,563.95.

Nifty October 2022 futures closed at 17544.90 (LTP) on Thursday, at a discount of 19.05 points over spot closing of 17563.95, while Nifty November 2022 futures ended at 17586.00 (LTP) at a premium of 22.05 points over spot closing. Nifty October futures saw an addition of 23,326 units, taking the total open interest (Contracts) to 2,43,069 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 2.60 points at 2498.65 (LTP) compared with spot closing of 2496.05. The numbers of contracts traded were 41,411. (Provisional)

Infosys October 2022 futures traded at a discount of 13.50 points at 1487.85 (LTP) compared with spot closing of 1501.35. The numbers of contracts traded were 37,407. (Provisional)

Canara Bank October 2022 futures traded at a premium of 0.20 points at 259.50 (LTP) compared with spot closing of 259.30. The numbers of contracts traded were 33,595. (Provisional)

HDFC Bank October 2022 futures traded at a premium of 3.10 points at 1452.15 (LTP) compared with spot closing of 1449.05. The numbers of contracts traded were 29,581. (Provisional)

Asian Paints October 2022 futures traded at a premium of 3.70 points at 3148.70 (LTP) compared with spot closing of 3145.00. The numbers of contracts traded were 27,900. (Provisional)

Among, Nifty calls, 17600 SP from the October month expiry was the most active call with an addition of 22,130 units open interests. Among Nifty puts, 17500 SP from the October month expiry was the most active put with an addition of 47,328 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,34,861 units) and that for Puts was at 17000 SP (1,13,076units). The respective Support and Resistance levels of Nifty are: Resistance 17,625.07 -- Pivot Point 17,523.03 -- Support -- 17,461.92.

The Nifty Put Call Ratio (PCR) finally stood at (1.11) for October month contract. The top five scrips with highest PCR on Canara Bank (1.24), TVS Motors (0.98), IDFC (0.96), M&MFIN (0.89) and Max Financial Services (0.88).

Among most active underlying, Reliance Industries witnessed an addition of 6,954 units of Open Interest in the October month futures, Indusind Bank witnessed an addition of 4,215 units of Open Interest in the October month futures, Adani Enterprises witnessed an addition of 6,410 units of Open Interest in the October month futures, HDFC Bank witnessed an addition of 2,169 units of Open Interest in the October month futures and Canara Bank witnessed an addition of 2,169 units of Open Interest in the October month futures. (Provisional)