Domestic index CNX Nifty traded jubilantly throughout the day and ended with a gain of over one and a half percentage points as traders remained optimistic after U.S. inflation eased more than had been expected, spurring hopes that the Federal Reserve might scale down plans for more interest rate hikes. Market made a gap-up opening as traders took support with S&P Global Ratings’ statement that about half of the Indian companies that it rates are getting a boost in their core profitability from rupee depreciation. It said ‘much of our rated India corporate portfolio has sizable US-dollar linked revenue and, therefore, is not exposed to rupee depreciation. This encompasses entities in the IT, metals, and chemicals sectors. About half of the firms we rate are getting an EBITDA boost from currency weakening. Trader took note of State Bank of India’s statement where it has pencilled in lower current account deficit at 3 per cent for this fiscal as against the minimum consensus of 3.5 per cent, citing rising software exports, remittances and a likely $5-billion jump in forex reserves via swap deals.
Selling continued in second half of the session and market ended near intraday high as traders took encouragement after Union Government released two instalments of tax devolution to State Governments amounting to Rs 1,16,665 crore, as against normal monthly devolution of Rs 58,333 crore, in line with the commitment of Government of India to strengthen the hands of States to accelerate their capital and developmental expenditure.
Most of the sectorial indices ended in green except AUTO, FMCG and PSU Bank. The top gainers from the F&O segment were Info Edge (India), Coforge and Firstsource Solutions. On the other hand, the top losers were Eicher Motors, Indian Hotels Company and Gujarat Narmada Valley Fertilizers & Chemicals. In the index option segment, maximum OI continues to be seen in the 19400 -19600 calls and 17950 -18050 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 7.46% and reached 14.41. The 50 share Nifty up by 321.50 points or 1.78% to settle at 18,349.70.
Nifty November 2022 futures closed at 18439.90 (LTP) on Friday, at a premium of 90.20 points over spot closing of 18349.70, while Nifty December 2022 futures ended at 18531.00 (LTP), at a premium of 181.30 points over spot closing. Nifty November futures saw an addition of 9,118 units, taking the total open interest (Contracts) to 12,52,199 units. The near month derivatives contract will expire on November 24, 2022. (Provisional)
From the most active contracts, HDFC Bank November 2022 futures traded at a premium of 7.10 points at 1619.00 (LTP) compared with spot closing of 1611.90. The numbers of contracts traded were 96,354. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 17.00 points at 2647.00 (LTP) compared with spot closing of 2630.00. The numbers of contracts traded were 49,938. (Provisional)
HDFC November 2022 futures traded at a premium of 14.50 points at 2661.75 (LTP) compared with spot closing of 2647.25. The numbers of contracts traded were 42,954. (Provisional)
Infosys November 2022 futures traded at a premium of 10.65 points at 1581.35 (LTP) compared with spot closing of 1570.70. The numbers of contracts traded were 40,911. (Provisional)
ICICI Bank November 2022 futures traded at a premium of 5.85 points at 913.20 (LTP) compared with spot closing of 907.35. The numbers of contracts traded were 26,302. (Provisional)
Among, Nifty calls, 18500 SP from the November month expiry was the most active call with a contraction of 1,522 units open interests. Among Nifty puts, 18300 SP from the November month expiry was the most active put with an addition of 34,370 units open interests. The maximum OI outstanding for Calls was at 19500 SP (52,299 units) and that for Puts was at 18000 SP (69,867 units). The respective Support and Resistance levels of Nifty are: Resistance 18388.21 -- Pivot Point 18323.78 -- Support -- 18285.26.
The Nifty Put Call Ratio (PCR) finally stood at (1.27) for November month contract. The top five scrips with highest PCR on Canara Bank (1.18), Mahindra & Mahindra Fin. Services (1.15), IPCA Laboratories (1.06), Jindal Steel & Power (1.06) and Amara Raja Batteries (1.04)
Among most active underlying, HDFC Bank witnessed an addition of 11,897 units of Open Interest in the November month futures, Housing Development Finance Corporation witnessed an addition of 1,951 units of Open Interest in the November month futures, ICICI Bank witnessed an addition of 5,592 units of Open Interest in the November month futures, Reliance Industries witnessed an addition of 4,031 units of Open Interest in the November month futures and Axis Bank witnessed an addition of 4,062 units of Open Interest in the November month futures. (Provisional)
