Nifty ended in negative terrain amid volatility as traders remained on sidelines ahead of inflation data. Market made flat to positive start as traders took support with Reserve Bank of India’s Governor Shaktikanta Das’ statement that India will continue to be the fastest growing major economy with a likely growth rate of 7 per cent in current financial year (FY23) on the back of strong macroeconomic fundamentals and financial sector stability. Soon, market pared gains and entered into red terrain as traders turned cautious with report that foreign exchange reserves declined by $1.1 billion to $529.99 billion in the week ended November 4. Besides, India’s industrial production, measured in terms of the Index of Industrial Production (IIP), expanded by 3.1 per cent in September 2022, boosted by manufacturing, mining and power sectors. It had expanded by 4.4 per cent in September 2021.
Market managed to hit green terrain couple of time during the trade as traders took support with report that India’s inflation based on wholesale price index (WPI) eased further to 8.39% in the month of October 2022 as against 10.70% recorded in September 2022, primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc. However, index failed to end up in green and ended with minor losses as sentiments turned downbeat with private report stating that asset management companies mobilised Rs 17,805 crore through 67 new fund offerings (NFOs) in the September 2022 quarter, a 64 per cent decline from the year-ago period, on expensive valuations and high volatility in equity markets.
Traders were seen piling positions in oil & gas, Realty and IT sector while selling was witnessed in Bank, Financial services and FMCG sector stock. The top gainers from the F&O segment were Info Manappuram Finance, Info Edge (India) and Hindalco Industries. On the other hand, the top losers were ABB India, Bharat Heavy Electricals and Sun TV Network. 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 increased by 3.50% and reached 14.91. The 50 share Nifty down by 20.55 points or 0.11% to settle at 18,329.15.
Nifty November 2022 futures closed at 18370.10 (LTP) on Monday, at a premium of 40.95 points over spot closing of 18329.15, while Nifty December 2022 futures ended at 18461.05 (LTP), at a premium of 131.90 points over spot closing. Nifty November futures saw a contraction of 5,079 units, taking the total open interest (Contracts) to 2,41,908 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 5.30 points at 1620.30 (LTP) compared with spot closing of 1615.00. The numbers of contracts traded were 29,617. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 11.35 points at 2626.00 (LTP) compared with spot closing of 2614.65. The numbers of contracts traded were 28,228. (Provisional)
Hindalco Industries November 2022 futures traded at a premium of 1.45 points at 456.05 (LTP) compared with spot closing of 454.60. The numbers of contracts traded were 22,857. (Provisional)
Tata Motors November 2022 futures traded at a premium of 2.70 points at 436.20 (LTP) compared with spot closing of 433.50. The numbers of contracts traded were 20,971. (Provisional)
Adani Ports and Special Economic Zone November 2022 futures traded at a premium of 3.70 points at 897.65 (LTP) compared with spot closing of 893.95. The numbers of contracts traded were 20,807. (Provisional)
Among, Nifty calls, 18500 SP from the November month expiry was the most active call with an addition of 2,507 units open interests. Among Nifty puts, 18300 SP from the November month expiry was the most active put with an addition of 1,709 units open interests. The maximum OI outstanding for Calls was at 19000 SP (58,078 units) and that for Puts was at 18000 SP (68,854 units). The respective Support and Resistance levels of Nifty are: Resistance 18381.93 -- Pivot Point 18346.66 -- Support -- 18293.88.
The Nifty Put Call Ratio (PCR) finally stood at (1.24) for November month contract. The top five scrips with highest PCR on Jindal Steel & Power (1.31), Canara Bank (1.19), Mahindra & Mahindra Fin. Services (1.10), Amara Raja Batteries (1.00) and JSW Steel (0.98)
Among most active underlying, HDFC Bank witnessed an addition of 1,431 units of Open Interest in the November month futures, ICICI Bank witnessed an addition of 2,132 units of Open Interest in the November month futures, Reliance Industries witnessed an addition of 975 units of Open Interest in the November month futures, State Bank of India witnessed an addition of 2,448 units of Open Interest in the November month futures and Ambuja Cements witnessed an contraction of 160 units of Open Interest in the November month futures. (Provisional)
