S&P CNX Nifty ended lower for third consecutive day amid weak global cues. India VIX was up by 2.83%. Market made gap down opening, as traders were concerned after foreign institutional investors (FIIs) net offloaded shares worth Rs 751.20 crore on 18 November, according to the provisional data available on NSE. Domestic sentiments also got hit after latest payroll data released by the Employees’ Provident Fund Organisation showed the number of fresh formal jobs created fell for the second consecutive month in September, declining 9 per cent sequentially to 930,000. Enrolment of new female subscribers fell faster (11.39 per cent) than their male counterparts (8.13 per cent) in September, compared with the previous month.
Index remained under a grip of bears in afternoon session, as sentiments remained in lackadaisical mood after gross fiscal deficit of the Indian states rose nearly 79 per cent after the lockdown. According to the latest data from the Reserve Bank of India (RBI), the fiscal deficit rose from Rs 5.2 trillion in FY20 to Rs 9.3 trillion in FY21. In FY22, the deficit fell to Rs 8.1 trillion but stood much higher than the pre-pandemic level. The market participants failed to take support with Niti Aayog Vice-Chairman Rajiv Kumar’ statement that India will still grow at 6-7 per cent in the next 2023-24 fiscal even as the economy may be affected by uncertain global conditions amid growing fears of the world slipping into a recession.
Market continued its weak run till the end of the session. Traders remained anxious amid private report stating that the Indian economy which claimed the title of the fastest-growing major economy in the previous fiscal is likely to lose its momentum in 2023 owing to higher borrowing costs and fading benefits from the Covid pandemic reopening. It stated gross domestic product may expand by 5.9% in the calendar year 2023 from an estimated 6.9% this year. Finally, Nifty closed the day’s trade below 18200 mark.
Most of the sectorial indices ended in red except Media, PSU Bank and Consumer Durables. The top gainers from the F&O segment were Escorts Kubota, Indian Energy Exchange and Shriram Transport Finance Company. On the other hand, the top losers were LTIMindtree, TVS Motor Company and Oil & Natural Gas Corporation. In the index option segment, maximum OI continues to be seen in the 18200 -18400 calls and 17900 -18100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.83% and reached 14.80. The 50 share Nifty down by 147.70 points or 0.81% to settle at 18,159.95.
Nifty November 2022 futures closed at 18194.00 (LTP) on Monday, at a premium of 34.05 points over spot closing of 18159.95, while Nifty December 2022 futures ended at 18283.25(LTP), at a premium of 123.30 points over spot closing. Nifty November futures saw a contraction of 4,055 units, taking the total open interest (Contracts) to 2,11,605 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 1.00 points at 871.00 (LTP) compared with spot closing of 870.00. The numbers of contracts traded were 53,615. (Provisional)
HDFC Bank November 2022 futures traded at a premium of 2.95 points at 1600.05 (LTP) compared with spot closing of 1597.10. The numbers of contracts traded were 45,901. (Provisional)
Reliance Industries November 2022 futures traded at a premium of 6.05 points at 2554.05 (LTP) compared with spot closing of 2548.00. The numbers of contracts traded were 34,592. (Provisional)
Bharti Airtel November 2022 futures traded at a premium of 2.65 points at 854.35 (LTP) compared with spot closing of 851.70. The numbers of contracts traded were 24,583. (Provisional)
Indusind Bank November 2022 futures traded at a premium of 0.85 points at 1142.10 (LTP) compared with spot closing of 1141.25. The numbers of contracts traded were 23,618. (Provisional)
Among, Nifty calls, 18200 SP from the November month expiry was the most active call with an addition of 1,08,802 units open interests. Among Nifty puts, 18100 SP from the November month expiry was the most active put with an addition of 23,553 units open interests. The maximum OI outstanding for Calls was at 18300 SP (2,50,329 units) and that for Puts was at 18000 SP (1,49,261 units). The respective Support and Resistance levels of Nifty are: Resistance 18237.05 -- Pivot Point 18185.20 -- Support -- 18108.10.
The Nifty Put Call Ratio (PCR) finally stood at (0.64) for November month contract. The top five scrips with highest PCR on Canara Bank (1.18), Balrampur Chini Mills (1.14), Jindal Steel & Power (1.09), NMDC (1.07) and Adani Enterprises (1.05).
Among most active underlying, HDFC Bank witnessed a contraction of 6,916 units of Open Interest in the November month futures, Adani Ports and Special Economic Zone witnessed a contraction of 8,131 units of Open Interest in the November month futures, ICICI Bank witnessed an addition of 1,273 units of Open Interest in the November month futures, Reliance Industries witnessed an addition of 3,551units of Open Interest in the November month futures, and Adani Enterprises witnessed an contraction of 1,264 units of Open Interest in the November month futures. (Provisional)
