Continuing its upward journey for the eighth consecutive session, S&P CNX Nifty closed Thursday’s trade above 18800 mark amid weekly F&O expiry. India VIX was down by 3.24%. It was a strong start for Nifty, as traders got encouragement after government data showed that retail inflation for industrial workers rose to 6.08 per cent in October from 6.49 per cent in September 2022 mainly due to lower prices of certain food items. Local investors also got cheered with Chief Economic Advsior V Anantha Nageswaran’s statement that the Indian economy is on track to achieve a 6.8-7 per cent GDP growth in the current fiscal. He said the economic recovery momentum is continuing and the GDP is averaging the 2019-20 level.
Market soon trimmed some of its initial gains, but continued to trade in fine fettle in the first half of the trading session, as some support came after investment in the Indian capital markets through participatory notes rose to Rs 97,784 crore at the end of October, the highest in a year. This was also the third consecutive monthly increase in investments through such a route. Besides, India's factory activity expanded at its fastest pace in three months in November, signalling resilient demand despite deteriorating global economic conditions as input cost inflation fell to a two-year low. The Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 55.7 last month compared with 55.3 in October, marking the seventeenth successive month of expansion in manufacturing production across India. In the second half, index cut more gains on account of profit booking by investors in some specific sectors but managed to continue its record closing run.
Most of the sectorial indices ended in green except Auto, FMCG and Pharma. The top gainers from the F&O segment were LTTS, Birlasoft and Mphasis. On the other hand, the top losers were Granules India, Indraprastha Gas and Shriram Transport Finance Company. In the index option segment, maximum OI continues to be seen in the 18900 -19100 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 decreased by 3.24% and reached 13.36. The 50 share Nifty up by 54.15 points or 0.29% to settle at 18,812.50.
Nifty December 2022 futures closed at 18945.00 (LTP) on Thursday, at a premium of 132.50 points over spot closing of 18812.50, while Nifty January 2023 futures ended at 19038.15 (LTP), at a premium of 225.65 points over spot closing. Nifty December futures saw a contraction of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 1,86,358 mn units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Tata Steel December 2022 futures traded at a premium of 0.95 points at 111.50 (LTP) compared with spot closing of 110.55. The numbers of contracts traded were 25,817. (Provisional)
Bandhan Bank December 2022 futures traded at a premium of 1.05 points at 236.60 (LTP) compared with spot closing of 235.55. The numbers of contracts traded were 25,606. (Provisional)
Reliance Industries December 2022 futures traded at a premium of 20.75 points at 2746.00 (LTP) compared with spot closing of 2725.25. The numbers of contracts traded were 23,692. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 14.55 points at 1632.55 (LTP) compared with spot closing of 1618.00. The numbers of contracts traded were 20,293. (Provisional)
Infosys December 2022 futures traded at a premium of 13.95 points at 1669.70 (LTP) compared with spot closing of 1655.75. The numbers of contracts traded were 19,367. (Provisional)
Among, Nifty calls, 19000 SP from the December month expiry was the most active call with a contraction of 4,230 units open interests. Among Nifty puts, 18500 SP from the December month expiry was the most active put with an addition of 15,452 units open interests. The maximum OI outstanding for Calls was at 19000 SP (66,942units) and that for Puts was at 18000 SP (75,221 units). The respective Support and Resistance levels of Nifty are: Resistance 18,874.00 -- Pivot Point 18,826.10 -- Support -- 18,764.60.
The Nifty Put Call Ratio (PCR) finally stood at (1.49) for December month contract. The top five scrips with highest PCR on IPCA Laboratories (1.25), Persistent Systems (1.03), IDFC (1.00), Hindustan Unilever (0.99) and Axis Bank (0.99).
Among most active underlying, HDFC Bank witnessed a contraction of 133 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 172 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 648 units of Open Interest in the December month futures, Ambuja Cements witnessed an addition of 774 units of Open Interest in the December month futures and Tata Steel witnessed an addition of 3,017 units of Open Interest in the December month futures. (Provisional)
