Nifty ends in positive terrain ahead of Fed outcome

Indian equity benchmark -- Nifty -- ended in positive terrain with marginal gain as traders remained on ahead of Fed outcome. Market made optimistic start as industry body PHDCCI said that India can scale up its merchandise exports to G20 nations to $500 billion by 2030 from the current $212 billion and significantly reduce trade deficit. Index continued to trade with traction in afternoon deals as sentiments remained positive after India’s inflation based on wholesale price index (WPI) eased further to 5.85% in the month of November 2022 as against 8.39% recorded in October 2022, primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year. The wholesale inflation was 10.70% in September 2022.

Markets hold its gain in second part of the trade as traders took support with Asian Development Bank’s report where it kept its outlook for India's economic growth unchanged at 7 per cent for the fiscal year 2022-23 (April 2022 to March 2023) from its September forecast supported by a strong domestic base. In 2021-22, Gross Domestic Product (GDP) growth was 8.7 per cent. However, traders booked some gains in dying hour of trade as traders remained on sidelines amid outcome of two-day meeting of Federal Open Market Committee (FOMC) which will announce its decision later in the day. 

Most of the sectorial indices ended in green except FMCG. The top gainers from the F&O segment were Vodafone Idea, RBL Bank and Indiabulls Housing Finance. On the other hand, the top losers were Nestle India, Page Industries and Colgate-Palmolive (India). 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 0.01% and reached 12.89. The 50 share Nifty up by 52.30 points or 0.28% to settle at 18,660.30.

Nifty December 2022 futures closed at 18738.40 (LTP) on Wednesday, at a premium of 78.10 points over spot closing of 18660.30, while Nifty January 2023 futures ended at 18854.60 (LTP), at a premium of 194.30 points over spot closing. Nifty December futures saw an addition of 3,967 units, taking the total outstanding open interest (Contracts) to 2,15,026 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
 
From the most active contracts, State Bank of India December 2022 futures traded at a premium of 0.45 points at 625.75 (LTP) compared with spot closing of 625.30. The numbers of contracts traded were 20,864. (Provisional)          

Infosys December 2022 futures traded at a premium of 6.00 points at 1580.00 (LTP) compared with spot closing of 1574.00. The numbers of contracts traded were 19,543. (Provisional)          

Reliance Industries December 2022 futures traded at a premium of 18.45 points at 2631.95 (LTP) compared with spot closing of 2613.50. The numbers of contracts traded were 17,670. (Provisional)          

HDFC Bank December 2022 futures traded at a premium of 6.00 points at 1666.00 (LTP) compared with spot closing of 1660.00. The numbers of contracts traded were 17,073. (Provisional)          

Indusind Bank December 2022 futures traded at a premium of 6.80 points at 1258.05 (LTP) compared with spot closing of 1251.25. The numbers of contracts traded were 14,185. (Provisional) 

Among, Nifty calls, 18700 SP from the December month expiry was the most active call with an addition of 2,285 units open interests. Among Nifty puts, 18600 SP from the December month expiry was the most active put with an addition of 2,638 units open interests. The maximum OI outstanding for Calls was at 19000 SP (71,617 units) and that for Puts was at 18000 SP (74,664 units). The respective Support and Resistance levels of Nifty are: Resistance 18693.30 -- Pivot Point 18663.10 -- Support -- 18630.10.

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 (1.12), RBL Bank (1.07), Power Finance Corporation (1.06), Aditya Birla Capital (1.01) and Indusind Bank (0.98).

Among most active underlying, State Bank of India witnessed an addition of 1,890 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 1,581 units of Open Interest in the December month futures, HDFC Bank witnessed an addition of 1,121 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 2,814 units of Open Interest in the December month futures, and Punjab National Bank witnessed an addition of 847 units of Open Interest in the December month futures. (Provisional)