Nifty ended the day’s trade with marginal losses as traders remained on sidelines ahead of the U.S. inflation data to be released later this week for cues on the Federal Reserve’s future rate hikes. Market made an optimistic start as traders took some support with report that the growth momentum in India’s manufacturing sector is likely to have picked up in the September quarter and may sustain for the next six to nine months over rising capacity utilisation, according to the latest quarterly survey on Indian manufacturing sector by Federation of Indian Chambers of Commerce and Industry (FICCI). The survey shows 61 per cent respondents reporting higher production level in September quarter compared to the same period a year ago as against 55 per cent respondents reporting higher output in June quarter of FY23.
Soon rally got fizzled out and market turned flat to trade near neutral lines for most part of the day as sentiments turned downbeat with Chief Economic Advisor V Anantha Nageswaran’s statement that India’s gross domestic product (GDP) growth for the current fiscal year (FY23) is now expected to be between 6.5 and 7 per cent. This was for the first time a government official said real economic growth may not exceed 7 per cent this fiscal year. Selling intensifies in last leg of trade which forced Nifty to end with a quarter a percent loss amid reports that a slowing global economy with many countries headed to a recession, debt crisis, millions slipping back into poverty due to Covid-19, climate crises, breakdown of supply chains due to the war in Europe, and the geopolitical upheavals caused by Russia’s invasion of Ukraine.
Most of the sectorial indices ended in red except Bank, FMCG and PSU Bank. The top gainers from the F&O segment were P I Industries, Punjab National Bank and Bank of Baroda. On the other hand, the top losers were Jubilant FoodWorks, Dr. Lal PathLabs and MRF. In the index option segment, maximum OI continues to be seen in the 18900 -19100 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 increased by 2.11% and reached 15.92. The 50 share Nifty down by 45.80 points or 0. 25% to settle at 18,157.00.
Nifty November 2022 futures closed at 18190.10 (LTP) on Wednesday, at a premium of 33.10 points over spot closing of 18157.00, while Nifty December 2022 futures ended at 18275.00 (LTP), at a premium of 118.00 points over spot closing. Nifty November futures saw an addition of 2,44,026 units, taking the total open interest (Contracts) to 15,208 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 6.45 points at 893.45 (LTP) compared with spot closing of 887.00. The numbers of contracts traded were 51,864. (Provisional)
Adani Enterprises November 2022 futures traded at a premium of 21.30 points at 4003.90 (LTP) compared with spot closing of 3982.60. The numbers of contracts traded were 27,507. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 10.30 points at 2604.00 (LTP) compared with spot closing of 2593.70. The numbers of contracts traded were 23,795. (Provisional)
Punjab National Bank November 2022 futures traded at a premium of 0.35 points at 45.15 (LTP) compared with spot closing of 44.80. The numbers of contracts traded were 21,401. (Provisional)
Divi's Laboratories November 2022 futures traded at a premium of 20.00 points at 3317.00 (LTP) compared with spot closing of 3297.00. The numbers of contracts traded were 19,772. (Provisional)
Among, Nifty calls, 18200 SP from the November month expiry was the most active call with an addition of 6,999 units open interests. Among Nifty puts, 18000 SP from the November month expiry was the most active put with an addition of 2,238 units open interests. The maximum OI outstanding for Calls was at 19000 SP (49,032 units) and that for Puts was at 17000 SP (75,741 units). The respective Support and Resistance levels of Nifty are: Resistance 18263.10 -- Pivot Point 18190.30 -- Support -- 18084.20.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for November month contract. The top five scrips with highest PCR on Canara Bank (1.46), Bank of Baroda (1.23), Mahindra & Mahindra Fin. Services (1.20), Amara Raja Batteries (1.08) and Adani Enterprises (0.97)
Among most active underlying, Adani Ports and Special Economic Zone witnessed an addition of 3,268 units of Open Interest in the November month futures, Adani Enterprises witnessed an addition of 544 units of Open Interest in the November month futures, State Bank of India witnessed an addition of 2,155 units of Open Interest in the November month futures, ICICI Bank witnessed an addition of 2,146 units of Open Interest in the November month futures and Reliance Industries witnessed an addition of 1,809 units of Open Interest in the November month futures. (Provisional)
