Nifty managed to end in green terrain on Friday helped by buying witnessed in last leg of trade. Market made positive start and soon slipped into red territory as traders turned cautious after hawkish comments from Fed Chair Jerome Powell dashed hopes around easing of monetary tightening from December. Markets traded in a very tight band near neutral lines for most part of the day as traders remain worried after Bank of England raised interest rates to 3% on Thursday from 2.25%, its biggest rate rise since 1989 as it warned of a “very challenging” outlook for the economy. The central bank forecasts inflation will hit a 40-year high of around 11% during the current quarter, but that Britain has already entered a recession that could potentially last two years - longer than during the 2008-09 financial crisis.
However, buying in last leg of trade helped markets to end in green as traders went for beaten down but fundamentally strong stocks. Traders took some solace with Finance Minister Nirmala Sitharaman’s statement that India offers policy stability, transparency and consultative process of governance to incubate investment. Further, some support also come in as Prime Minister Narendra Modi said loans worth Rs 20 lakh crore have been disbursed so far under the Centre’s MUDRA scheme to provide self-employment opportunities to the youth, and added that Maharashtra was one of its major beneficiaries. Additional support also come as report suggested that the valuations of Indian companies have grown at a faster pace than their foreign parent.
Traders were seen piling positions in Bank, Financial services and FMCG sector while selling was witnessed in Consumer Durables, Metal and IT sector stocks. The top gainers from the F&O segment were Amara Raja Batteries, Adani Enterprises and Vedanta. On the other hand, the top losers were Syngene International, Hindustan Petroleum Corporation and Aditya Birla Fashion and Retail. In the index option segment, maximum OI continues to be seen in the 19400 -19600 calls and 16950 -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 1.80% and reached 15.66. The 50 share Nifty up by 64.45 points or 0.36% to settle at 18,117.15.
Nifty November 2022 futures closed at 18218.00 (LTP) on Friday, at a premium of 100.85 points over spot closing of 18117.15, while Nifty December 2022 futures ended at 18295.45 (LTP), at a premium of 178.30 points over spot closing. Nifty November futures saw an addition of 7,789 units, taking the total outstanding open interest (Contracts) to 2,39,894 units. The near month derivatives contract will expire on November 24, 2022. (Provisional)
From the most active contracts, State Bank of India November 2022 futures traded at a premium of 2.80 points at 598.50 (LTP) compared with spot closing of 595.70. The numbers of contracts traded were 49,241. (Provisional)
Adani Enterprises November 2022 futures traded at a premium of 25.15 points at 3851.05 (LTP) compared with spot closing of 3825.90. The numbers of contracts traded were 44,637. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 16.30 points at 2610.50 (LTP) compared with spot closing of 2594.20. The numbers of contracts traded were 37,952. (Provisional)
Vedanta November 2022 futures traded at a premium of 2.40 points at 325.00 (LTP) compared with spot closing of 322.60. The numbers of contracts traded were 35,429. (Provisional)
Adani Ports and Special Economic Zone November 2022 futures traded at a premium of 5.30 points at 864.10 (LTP) compared with spot closing of 858.80. The numbers of contracts traded were 34,119. (Provisional)
Among, Nifty calls, 18500 SP from the November month expiry was the most active call with an addition of 5,634 units open interests. Among Nifty puts, 18100 SP from the November month expiry was the most active put with an addition of 5,222 units open interests. The maximum OI outstanding for Calls was at 19500 SP (46,764 units) and that for Puts was at 17000 SP (73,074 units). The respective Support and Resistance levels of Nifty are: Resistance 18119.48 -- Pivot Point 18068.31 -- Support -- 18001.53.
The Nifty Put Call Ratio (PCR) finally stood at (1.33) for November month contract. The top five scrips with highest PCR on Mahindra & Mahindra Financial Services (1.23), Canara Bank (1.14), ICICI Prudential Life Insurance Company (1.01), Grasim Industries (0.92) and IDFC (0.87).
Among most active underlying, State Bank of India witnessed an addition of 2,002 units of Open Interest in the November month futures, Adani Enterprises witnessed an addition of 3,826 units of Open Interest in the November month futures, Reliance Industries witnessed an addition of 5,133 units of Open Interest in the November month futures, Adani Ports and Special Economic Zone witnessed a contraction of 1,345 units of Open Interest in the November month futures and Vedanta witnessed an addition of 3,174 units of Open Interest in the November month futures. (Provisional)
