Indian equity benchmark -- Nifty -- ended in green terrain on Thursday as traders took support with Minister of State for Commerce and Industry Som Parkash's statement that the reforms taken by Government have resulted in increased Foreign Direct Investment (FDI) inflows in the country. FDI inflows in India stood at $45.15 billion in 2014-2015 and have continuously increased since then, and India registered its highest ever annual FDI inflow of $84.84 billion (provisional figures) in the financial year 2021-22. Soon after making a cautious start, Nifty hit intraday high point as traders got some support with Central Board of Indirect Taxes & Customs Chairman Vivek Johri's statement where he expressed hope that robust Goods and Services Tax (GST) collections will help achieve the FY23 revenue growth target on the indirect taxes front, despite the impact of duty cuts on central excise and customs mop-up. He said ‘If you look at indirect taxes as a whole, then I am pretty confident that we will meet the target. We are on track’. He also said most of the growth has been coming from the GST, where revenues have been doing very well for the last two months.
However, market trimmed some of its gain in afternoon session to trade near neutral line as some concern came after India Ratings and Research (Ind-Ra) in its latest report said that the many rising headwinds, both domestic as well as external, are expected to pull down India’s Gross domestic product (GDP) growth to 4-4.5 per cent in the second half of FY2023 (H2FY23), shaving off the better numbers in the first half. In last leg of the trade, market extended their gains to end with a gain of around quarter a percent, as some support came after government extended export benefits under the tax refund scheme -- RoDTEP -- to chemicals, pharmaceuticals and products of iron and steel for a specified period with a view to boost shipments of these goods, amidst exports growth recording a contraction of 16.65 per cent in October. Finally, market ended its day in green terrain, settled above 18600 mark.
Most of the sectorial indices ended in green except IT, Pharma, Realty, Healthcare Index and Consumer Durables. The top gainers from the F&O segment were Bank of Baroda, Coromandel International and Punjab National Bank. On the other hand, the top losers were LTIMindtree, Sun Pharmaceutical Industries and Indiabulls Housing Finance. 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 4.83% and reached 13.40. The 50 share Nifty up by 48.85 points or 0.26% to settle at 18,609.35.
Nifty December 2022 futures closed at 18724.95 (LTP) on Thursday, at a premium of 115.60 points over spot closing of 18609.35, while Nifty January 2023 futures ended at 18831.85(LTP), at a premium of 222.50 points over spot closing. Nifty December futures saw a contraction of 1,789 units, taking the total open interest (Contracts) to 2,21,083 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Kotak Mahindra Bank December 2022 futures traded at a premium of 15.40 points at 1914.00 (LTP) compared with spot closing of 1898.60. The numbers of contracts traded were 28,053. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 10.15 points at 1630.15 (LTP) compared with spot closing of 1620.00. The numbers of contracts traded were 21,507. (Provisional)
Axis Bank December 2022 futures traded at a premium of 0.60 points at 940.60 (LTP) compared with spot closing of 940.00. The numbers of contracts traded were 20,832. (Provisional)
Bank of Baroda December 2022 futures traded at a premium of 1.05 points at 188.45 (LTP) compared with spot closing of 187.40. The numbers of contracts traded were 18,608. (Provisional)
Sun Pharmaceutical Industries December 2022 futures traded at a premium of 7.15 points at 986.65 (LTP) compared with spot closing of 979.50. The numbers of contracts traded were 18,212. (Provisional)
Among, Nifty calls, 19000 SP from the December month expiry was the most active call with an addition of 4,349 units open interests. Among Nifty puts, 18600 SP from the December month expiry was the most active put with a contraction of 2,125 units open interests. The maximum OI outstanding for Calls was at 19000 SP (73,997 units) and that for Puts was at 18000 SP (64,384 units). The respective Support and Resistance levels of Nifty are: Resistance 18643.91 -- Pivot Point 18590.43 -- Support -- 18555.86.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for December month contract. The top five scrips with highest PCR on Bank of Baroda (1.31), Aditya Birla Capital (1.20), Britannia Industries (1.04), Max Financial Services (1.03) and Power Finance Corporation (0.99).
Among most active underlying, Axis Bank witnessed an addition of 3,824 units of Open Interest in the December month futures, Kotak Mahindra Bank witnessed an addition of 10,834 units of Open Interest in the December month futures, Bank Of Baroda witnessed an addition of 3,248 units of Open Interest in the December month futures, HDFC Bank witnessed an addition of 3,667 units of Open Interest in the December month futures and ICICI Bank witnessed an addition of 368 units of Open Interest in the December month futures. (Provisional)
