Nifty ended the sluggish day of trade with marginal gains as traders remained on sidelines ahead of geopolitical tensions. Index made negative start as traders remained concern after political instability gripped the region after a missile hit Polish territory, raising tensions between Russia and NATO. However, market trimmed all their losses and traded above the neutral line for most part of the day as traders took support with a private report stating that India’s IT and business services market grew 7.4 per cent in the first half of 2022, compared to 6.4 per cent in the same period a year ago and helped by enterprises investing in digital transformation.
Market witnessed volatility in last leg of trade and somehow managed to end in green terrain as traders also took some solace with Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta’s statement that the direct tax collection in the current fiscal is likely to exceed the budget target of Rs 14.20 lakh crore by about 30 per cent. He also said that the Budget for next fiscal could bring about some tweaks in the TDS provision for online gaming to check tax evasion. Though, market participants largely remained worried as data released by the commerce ministry showed that India's merchandise trade deficit widened to $26.91 billion in October as exports crashed by 17 percent year-on-year to $29.78 billion while imports rose by 6 percent. The trade deficit stood at $17.91 billion in October 2021. However, market ended in positive terrain.
Most of the sectorial indices ended in red except Bank, Financial Services and IT. The top gainers from the F&O segment were Hindustan Aeronautics, Kotak Mahindra Bank and Dalmia Bharat. On the other hand, the top losers were Indiabulls Housing Finance, Apollo Tyres and Metropolis Healthcare. In the index option segment, maximum OI continues to be seen in the 18900 -19100 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 3.17% and reached 15.10. The 50 share Nifty up by 6.25 points or 0.03% to settle at 18,409.65.
Nifty November 2022 futures closed at 18446.00 (LTP) on Wednesday, at a premium of 36.35 points over spot closing of 18409.65, while Nifty December 2022 futures ended at 18532.85(LTP), at a premium of 123.20 points over spot closing. Nifty November futures saw a contraction of 5,578 units, taking the total open interest (Contracts) to 2,34,200 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 3.35 points at 888.90 (LTP) compared with spot closing of 885.55. The numbers of contracts traded were 34,758. (Provisional)
Adani Enterprises November 2022 futures traded at a premium of 3.20 points at 3978.20 (LTP) compared with spot closing of 3975.00. The numbers of contracts traded were 31,384. (Provisional)
HDFC Bank November 2022 futures traded at a premium of 4.50 points at 1634.50 (LTP) compared with spot closing of 1630.00. The numbers of contracts traded were 28,776. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 10.05 points at 2603.00 (LTP) compared with spot closing of 2592.95. The numbers of contracts traded were 23,659. (Provisional)
Kotak Mahindra Bank November 2022 futures traded at a premium of 6.70 points at 1970.30 (LTP) compared with spot closing of 1963.60. The numbers of contracts traded were 23,320. (Provisional)
Among, Nifty calls, 18500 SP from the November month expiry was the most active call with an addition of 12,308 units open interests. Among Nifty puts, 18400 SP from the November month expiry was the most active put with an addition of 18,908 units open interests. The maximum OI outstanding for Calls was at 19000 SP (77,080 units) and that for Puts was at 18000 SP (75,958 units). The respective Support and Resistance levels of Nifty are: Resistance 18453.15 -- Pivot Point 18398.65 -- Support -- 18355.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.22) for November month contract. The top five scrips with highest PCR on Jindal Steel & Power (1.34), Canara Bank (1.23), Amara Raja Batteries (1.05), Balkrishna Industries (1.02) and Housing Development Finance Corporation (0.97)
Among most active underlying, Adani Enterprises Zone witnessed a contraction of 66 units of Open Interest in the November month futures, HDFC Bank witnessed a contraction of 449 units of Open Interest in the November month futures, Hindustan Aeronautics witnessed an addition of 707 units of Open Interest in the November month futures, Adani Ports and Special Economic Zone witnessed an addition of 774 units of Open Interest in the November month futures and Kotak Mahindra Bank witnessed an addition of 531 units of Open Interest in the November month futures and (Provisional)
