Indian equity benchmark -- Nifty -- ended in red on Wednesday after RBI hiked repo rate by 35 bps. After making cautious start, market soon entered into positive territory, as traders got some support after Fitch Ratings retained India's economic growth forecast at 7 per cent for the current fiscal, saying India could be one of the fastest-growing emerging markets this year. However, market unable to hold its gains and soon turned negative, as sentiments got hit after the Reserve Bank of India (RBI) has increased the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points to 6.25 per cent with immediate.
Market continued its trade in red zone in the second half of the trading session, as traders got cautious, after Niti Aayog has raised objections to certain provisions pertaining to the proposed DESH bill, which seeks to replace the existing law for special economic zones. In the Union Budget 2022-23, the government had proposed to replace the existing law governing Special Economic Zones (SEZs) with a new legislation to enable states to become partners in 'Development of Enterprise and Service Hubs' (DESH). Finally, market ended its day in negative zone, settling near 18550 mark.
Most of the sectorial indices ended in red except FMCG and PSU Bank. The top gainers from the F&O segment were Siemens, Hindustan Petroleum Corporation and HDFC Asset Management Company. On the other hand, the top losers were Jubilant FoodWorks, Delta Corp and Oberoi Realty. 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 0.24% and reached 14.08. The 50 share Nifty down by 82.25 points or 0.44% to settle at 18,560.50.
Nifty December 2022 futures closed at 18673.70 (LTP) on Wednesday, at a premium of 113.20 points over spot closing of 18560.50, while Nifty January 2023 futures ended at 18787.00 (LTP), at a premium of 226.50 points over spot closing. Nifty December futures saw an addition of 13,656 units, taking the total outstanding open interest (Contracts) to 2,35,058 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 21.20 points at 2668.20 (LTP) compared with spot closing of 2647.00. The numbers of contracts traded were 22,999. (Provisional)
Infosys December 2022 futures traded at a premium of 10.50 points at 1612.50 (LTP) compared with spot closing of 1602.00. The numbers of contracts traded were 19,141. (Provisional)
Axis Bank December 2022 futures traded at a premium of 4.85 points at 917.85 (LTP) compared with spot closing of 913.00. The numbers of contracts traded were 15,090. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 8.55 points at 1619.55 (LTP) compared with spot closing of 1611.00. The numbers of contracts traded were 13,748. (Provisional)
Asian Paints December 2022 futures traded at a premium of 30.65 points at 3252.75 (LTP) compared with spot closing of 3222.10. The numbers of contracts traded were 12,797. (Provisional)
Among, Nifty calls, 19000 SP from the December month expiry was the most active call with a contraction of 770 units open interests. Among Nifty puts, 18500 SP from the December month expiry was the most active put with an addition of 6,378 units open interests. The maximum OI outstanding for Calls was at 19000 SP (69,599 units) and that for Puts was at 18000 SP (63,431 units). The respective Support and Resistance levels of Nifty are: Resistance 18643.06 -- Pivot Point 18585.73 -- Support -- 18503.16.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for December month contract. The top five scrips with highest PCR on Aditya Birla Capital (1.11), Max Financial Services (1.00), Lupin (0.99), Britannia Industries (0.98) and Hindustan Unilever (0.95).
Among most active underlying, Axis Bank witnessed an addition of 346 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 4,498 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 1,417 units of Open Interest in the December month futures, HDFC Bank witnessed a contraction of 621 units of Open Interest in the December month futures and Adani Enterprises witnessed an addition of 639 units of Open Interest in the December month futures. (Provisional)
