Nifty ends flat ahead of CPI, IIP data

Indian equity benchmark -- Nifty -- ended flat after changing session as traders remained on sidelines ahead of Consumer Price Index (CPI) and Index of Industrial Production (IIP) data. Soon after making a negative start, market trimmed most of their losses and traded between positive and negative territory as traders took some support with the Reserve Bank of India's (RBI) statistical supplement showing that India's foreign exchange reserves rose for a fourth week to an over three-month high of $561.16 billion in the week through December 2. Some relief came in with report that India's net direct tax collection grew 24% to Rs 8.77 lakh crore in the April-November of the ongoing fiscal. With this, the direct tax collection has reached around 61.79% of the full-year Budget Estimates (BE) for FY2023.

Markets turned lower in afternoon sessions as sentiments got a hit after data provided by commerce and industry minister Piyush Goyal showed that the trade deficit, difference between import and exports, between India and China has touched $51.5 billion during April-October this fiscal. But in last leg of trade market cut some of its losses and ended flat as traders got some relief with report that UK Trade Secretary Kemi Badenoch arrives in New Delhi on Monday to “kickstart” the sixth round of free trade agreement (FTA) negotiations and hold bilateral talks with her Indian counterpart Piyush Goyal. The new round marks the first formal meeting between the India-UK negotiating teams since July and the first since Rishi Sunak took charge as British Prime Minister.

Most of the sectorial indices ended in green except IT, Pharma, Healthcare Index and Consumer Durables. The top gainers from the F&O segment were Hindustan Petroleum Corporation, Honeywell Automation India and Dalmia Bharat. On the other hand, the top losers were Glenmark Pharmaceuticals, Godrej Consumer Products and Navin Fluorine International. 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 1.18% and reached 13.32. The 50 share Nifty up by 0.55 points or 0.003% to settle at 18,497.15.

Nifty December 2022 futures closed at 18605.50 (LTP) on Monday, at a premium of 108.35 points over spot closing of 18497.15, while Nifty January 2023 futures ended at 18721.15 (LTP), at a premium of 224.00 points over spot closing. Nifty December futures saw a contraction of 1,478 units, taking the total open interest (Contracts) to 2,20,003 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)        

From the most active contracts, Infosys December 2022 futures traded at a premium of 6.80 points at 1552.00 (LTP) compared with spot closing of 1545.20. The numbers of contracts traded were 32,079. (Provisional)        

HDFC Bank December 2022 futures traded at a premium of 10.10 points at 1652.90 (LTP) compared with spot closing of 1642.80. The numbers of contracts traded were 26,052. (Provisional)        

Reliance Industries December 2022 futures traded at a premium of 19.85 points at 2636.85 (LTP) compared with spot closing of 2617.00. The numbers of contracts traded were 23,415. (Provisional)        

Tata Consultancy Services December 2022 futures traded at a premium of 21.00 points at 3306.00 (LTP) compared with spot closing of 3285.00. The numbers of contracts traded were 14,277. (Provisional)        

Indusind Bank December 2022 futures traded at a premium of 6.10 points at 1215.10 (LTP) compared with spot closing of 1209.00. The numbers of contracts traded were 12,563. (Provisional)

Among, Nifty calls, 19000 SP from the December month expiry was the most active call with a contraction of 466 units open interests. Among Nifty puts, 18500 SP from the December month expiry was the most active put with an addition of 2,956 units open interests. The maximum OI outstanding for Calls was at 19000 SP (71,051 units) and that for Puts was at 18000 SP (74,223 units). The respective Support and Resistance levels of Nifty are: Resistance 18563.90 -- Pivot Point 18454.80 -- Support -- 18388.05.

The Nifty Put Call Ratio (PCR) finally stood at (1.28) for December month contract. The top five scrips with highest PCR on Power Finance Corporation (1.11), Aditya Birla Capital (1.07), Hindustan Petroleum Corporation (1.04), Bank of Baroda (1.04) and Britannia Industries (0.98).

Among most active underlying, HDFC Bank witnessed an addition of 5,850 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 3,748 units of Open Interest in the December month futures, Infosys witnessed an addition of 9,551 units of Open Interest in the December month futures, Axis Bank witnessed an addition of 1,831 units of Open Interest in the December month futures, and ICICI Bank witnessed an addition of 1,000 units of Open Interest in the December month futures. (Provisional)