Snapping four day winning streak, Nifty ended the day in red terrain with a cut of one third of a percent as traders remained on sidelines ahead of the US Federal Reserve's policy decision later tonight, with many hoping for signs of a slowdown in future rate hikes. Market made a cautious start and soon entered into red terrain as traders remained anxious with a private report stating that market borrowing cost for the states remained high with the average yield hitting 7.83 per cent at the auctions held on Tuesday, which is a paltry 1 basis points lower than the last auction of state securities. Some concern also came with latest data released by the Centre for Monitoring Indian Economy (CMIE) that after the unemployment rate fell to a four year low in September, it rose to a four month high of 7.77 per cent in October.
Market extended losses and ended near intraday low amid a private report stating that India's fast-depleting foreign exchange reserves are likely to drop more than was predicted just a month ago by end-2022 as the Reserve Bank of India will continue to shield the rupee from the dollar's strength. Meanwhile, Finance Minister Nirmala Sitharaman said India will press for collective efforts to deal with the spillovers of happenings in advanced economies as well as global regulation of crypto assets to check terror funding under its G20 presidency. She outlined eight priority areas, including reforms in multilateral institutions and food and energy security, for discussion under its G20 presidency which will begin from December 1.
Traders were seen piling positions in Media, Metal and Financial services sector while selling was witnessed in Private Bank, Consumer Durables and reality sector stocks.The top gainers from the F&O segment were Cholamandalam Investment and Finance Company, NMDC and SUNTV. On the other hand, the top losers were LIC Housing Finance, Chambal Fertilisers and Chemicals and Bharti Airtel.
In the index option segment, maximum OI continues to be seen in the 18300 -18450 calls and 17450 -17600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.30% and reached 16.66. The 50 share Nifty down by 62.55 points or 0.34% to settle at 18,082.85.
Nifty November 2022 futures closed at 18138.15 (LTP) on Wednesday, at a premium of 55.30 points over spot closing of 18082.85, while Nifty December 2022 futures ended at 18202.00 (LTP), at a premium of 119.15 points over spot closing. Nifty November futures saw a contraction of 8,175 units, taking the total open interest (Contracts) to 2,35,457 units. The near month derivatives contract will expire on November 24, 2022. (Provisional)
From the most active contracts, Adani Ports and Special Economic Zone November 2022 futures traded at a premium of 4.85 points at 834.85 (LTP) compared with spot closing of 830.00. The numbers of contracts traded were 29,254. (Provisional)
LIC Housing Finance November 2022 futures traded at a discount of 2.95 points at 361.60 (LTP) compared with spot closing of 364.55. The numbers of contracts traded were 25,460. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 11.30 points at 2553.85 (LTP) compared with spot closing of 2542.55. The numbers of contracts traded were 22,279. (Provisional)
Adani Enterprises November 2022 futures traded at a premium of 17.45 points at 3587.95 (LTP) compared with spot closing of 3570.50. The numbers of contracts traded were 17,532. (Provisional)
HDFC Bank November 2022 futures traded at a premium of 6.85 points at 1521.80 (LTP) compared with spot closing of 1514.95. The numbers of contracts traded were 15,518. (Provisional)
Among, Nifty calls, 18100 SP from the November month expiry was the most active call with an addition of 14,402 units open interests. Among Nifty puts, 18100 SP from the November month expiry was the most active put with a contraction of 28,258 units open interests. The maximum OI outstanding for Calls was at 18400 SP (1,59,773 units) and that for Puts was at 17500 SP (1,47,600 units). The respective Support and Resistance levels of Nifty are: Resistance 18158.18 -- Pivot Point 18103.42-- Support -- 18028.08.
The Nifty Put Call Ratio (PCR) finally stood at (1.40) for November month contract. The top five scrips with highest PCR on Whirlpool Of India (1.24), ICICI Prudential Life Insurance (1.05), Canara Bank (1.03), Grasim Industries (1.02) and Petronet LNG (0.96).
Among most active underlying, LIC Housing Finance witnessed an addition of 6,938 units of Open Interest in the November month futures, Adani Enterprises witnessed an addition of 361 units of Open Interest in the November month futures, Adani Ports and Special Economic Zone witnessed an addition of 5,087 units of Open Interest in the November month futures, Reliance Industries witnessed a contraction of 1,047 units of Open Interest in the November month futures and HDFC Bank witnessed an addition of 607units of Open Interest in the November month futures. (Provisional)
