Indian equity benchmark - Nifty - ended in negative terrain as Traders were concerned after U.S. Federal Reserve officials fired more warning shots on interest rates. Soon after making a positive start, Nifty entered into red as trader remained cautious with Moody's Investors Service stating that a combination of weak growth in advanced economies, persistent inflationary pressures, the Russia-Ukraine conflict, tight financial conditions, and a subdued growth outlook for China will create a difficult environment for emerging markets (EM) in 2023. As regards India, Moody's said food and fuel remain the main drivers of inflation because they represent a larger share of the consumption basket. For example, rising food prices have contributed to almost half of the growth in headline inflation this year in India.
Indices continued to show a sluggish trend in afternoon session after S&P Global Ratings in its latest report has stated that polarization in the performance of Indian banks may persist in 2023 as many large public-sector banks are still saddled with weak assets, high credit costs, and poor earnings. However, in last leg of trade market trimmed most of its losses as traders opted to but some beaten down but fundamentally strong stocks.
Most of the sectorial indices ended in red except PSU Bank and Realty. The top gainers from the F&O segment were NMDC, Birlasoft and Punjab National Bank. On the other hand, the top losers were Rain Industries, Navin Fluorine International and Glenmark Pharmaceuticals. In the index option segment, maximum OI continues to be seen in the 18300 -18500 calls and 18200 -18400 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.27% and reached 14.39. The 50 share Nifty down by 36.25 points or 0.20% to settle at 18,307.65.
Nifty November 2022 futures closed at 18345.00 (LTP) on Friday, at a premium of 37.35 points over spot closing of 18307.65, while Nifty December 2022 futures ended at 18432.00 (LTP), at a premium of 124.35 points over spot closing. Nifty November futures saw a contraction of 6,941 units, taking the total outstanding open interest (Contracts) to 2,20,571 units. The near month derivatives contract will expire on November 24, 2022. (Provisional)
From the most active contracts, Kotak Mahindra Bank November 2022 futures traded at a premium of 1.70 points at 1959.70 (LTP) compared with spot closing of 1958.00. The numbers of contracts traded were 24,485. (Provisional)
HDFC Bank November 2022 futures traded at a premium of 7.25 points at 1619.30 (LTP) compared with spot closing of 1612.05. The numbers of contracts traded were 22,252. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 3.95 points at 2601.00 (LTP) compared with spot closing of 2597.05. The numbers of contracts traded were 21,715. (Provisional)
ICICI Bank November 2022 futures traded at a premium of 1.90 points at 922.90 (LTP) compared with spot closing of 921.00. The numbers of contracts traded were 19,755. (Provisional)
Punjab National Bank November 2022 futures traded at a premium of 0.05 points at 45.80 (LTP) compared with spot closing of 45.75. The numbers of contracts traded were 18,795. (Provisional)
Among, Nifty calls, 18400 SP from the November month expiry was the most active call with an addition of 1,02,620 units open interests. Among Nifty puts, 18300 SP from the November month expiry was the most active put with an addition of 41,442 units open interests. The maximum OI outstanding for Calls was at 18400 SP (2,11,334 units) and that for Puts was at 18300 SP (1,39,271 units). The respective Support and Resistance levels of Nifty are: Resistance 18398.23 -- Pivot Point 18304.01 -- Support -- 18213.43.
The Nifty Put Call Ratio (PCR) finally stood at (0.74) for November month contract. The top five scrips with highest PCR on Canara Bank (1.24), Jindal Steel & Power (1.17), Balrampur Chini Mills (1.09), Amara Raja Batteries (1.06) and Adani Enterprises (1.02).
Among most active underlying, ICICI Bank witnessed an addition of 201 units of Open Interest in the November month futures, HDFC Bank witnessed a contraction of 732 units of Open Interest in the November month futures, Kotak Mahindra Bank witnessed an addition of 964 units of Open Interest in the November month futures, Reliance Industries witnessed a contraction of 289 units of Open Interest in the November month futures and Punjab National Bank witnessed an addition of 1,320 units of Open Interest in the November month futures (Provisional)
