Nifty ended in negative zone and settled below 18,650 mark as traders remained on the sidelines ahead of RBI Monetary Policy Committee meeting outcome. Market made negative start as traders paid no heed towards private report stating that India’s central bank will probably start slowing the pace of interest-rate increases on Wednesday, signaling it’s near the end of its aggressive tightening cycle.
Market continued to trade in red in afternoon session as traders remained cautious after World Bank’s India Development Update said India is affected by spillovers from the US, Euro area and China. It however saw the government meeting the fiscal deficit target of 6.4 percent of the GDP in 2022-23. Besides, World Bank expects the inflation at 7.1 percent in current fiscal year. However, at the last leg of session, market pared some of its losses and ended below 18650 mark, as traders got some support with Union Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar’s statement that the Government of India is continuously working efficiently under the leadership of Prime Minister, with an aim to solve challenges of the agriculture sector.
Most of the sectorial indices ended in red except PSU Bank and Oil & Gas. The top gainers from the F&O segment were TVS Motor Company, Adani Enterprises and Shriram Transport Finance Company. On the other hand, the top losers were Bharat Petroleum Corporation, Persistent Systems and LTIMindtree. 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 increased by 2.25 % and reached 14.04. The 50 share Nifty down by 58.30 points or 0.31% to settle at 18,642.75.
Nifty December 2022 futures closed at 18770.50 (LTP) on Tuesday, at a premium of 127.75 points over spot closing of 18642.75, while Nifty January 2023 futures ended at 18879.40 (LTP), at a premium of 236.65 points over spot closing. Nifty December futures saw an addition of 4,986 units, taking the total open interest (Contracts) to 2,32,613 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Reliance Industries December 2022 futures traded at a premium of 14.45 points at 2703.90 (LTP) compared with spot closing of 2689.45. The numbers of contracts traded were 27,477. (Provisional)
Adani Enterprises December 2022 futures traded at a premium of 29.00 points at 4055.00 (LTP) compared with spot closing of 4026.00. The numbers of contracts traded were 24,327. (Provisional)
Infosys December 2022 futures traded at a premium of 12.00 points at 1626.00 (LTP) compared with spot closing of 1614.00. The numbers of contracts traded were 17,929. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 13.55 points at 1626.50 (LTP) compared with spot closing of 1612.95. The numbers of contracts traded were 14,459. (Provisional)
Punjab National Bank December 2022 futures traded at a premium of 0.50 points at 55.95 (LTP) compared with spot closing of 55.45. The numbers of contracts traded were 13,761. (Provisional)
Among, Nifty calls, 18700 SP from the December month expiry was the most active call with an addition of 9,275 units open interests. Among Nifty puts, 18600 SP from the December month expiry was the most active put with an addition of 5,485 units open interests. The maximum OI outstanding for Calls was at 19000 SP (70,359 units) and that for Puts was at 18000 SP (64,067 units). The respective Support and Resistance levels of Nifty are: Resistance 18672.46 -- Pivot Point 18625.18 -- Support -- 18595.46.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for December month contract. The top five scrips with highest PCR on Aditya Birla Capital (1.10), Max Financial Services (1.03), Lupin (1.01), Britannia Industries (1.01) and Apollo Tyres (0.92).
Among most active underlying, Adani Enterprises witnessed a contraction of 187 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 5,442 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 3,049 units of Open Interest in the December month futures, HDFC Bank witnessed an addition of 1,685 units of Open Interest in the December month futures and Punjab National Bank witnessed an addition of 2,303 units of Open Interest in the December month futures. (Provisional)
