Indian equity benchmark -- Nifty -- ended in red terrain on Wednesday as traders were worried with rising Covid-19 cases in Japan, China and the US. Soon after making slightly positive start, market failed to hold its gain and slipped into red terrain as sentiments got hit with Labour Bureau’s statement that retail inflation for farm and rural workers rose to 6.87 per cent and 6.99 per cent, respectively, in November on annual basis. Market extended its losses as traders paid no heed towards report that India is set to be the world's fastest growing major economy in the year ahead, as a post-pandemic retail boom and recent bank balance-sheet repairs lure new investment, fueling hot demand for everything from cars to televisions, coal and airliners.
Market widened its losses in late trade as traders were worried with renewed Covid outbreaks. Traders also remained cautious with private report stating that mergers and acquisitions (M&A) activity globally fell well short of the high-water mark set last year as debt financing markets collapsed and stock market volatility decimated valuations, and dealmakers are predicting a slow path to recovery in 2023.
Most of the sectorial indices ended in red except IT, Pharma and Healthcare Index. The top gainers from the F&O segment were Glenmark Pharmaceuticals, Metropolis Healthcare and Dr. Lal PathLabs. On the other hand, the top losers were City Union Bank, Indiabulls Housing Finance and Adani Enterprises. In the index option segment, maximum OI continues to be seen in the 18400 -18600 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 12.93% and reached 15.56. The 50 share Nifty down by 186.20 points or 1.01% to settle at 18,199.10.
Nifty December 2022 futures closed at 18277.90 (LTP) on Wednesday, at a premium of 78.80 points over spot closing of 18199.10, while Nifty January 2023 futures ended at 18388.00 (LTP), at a premium of 18388.00 points over spot closing. Nifty December futures saw an addition of 11,314 units, taking the total outstanding open interest (Contracts) to 2,12,554 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Adani Enterprises December 2022 futures traded at a premium of 8.00 points at 3917.00 (LTP) compared with spot closing of 3909.00. The numbers of contracts traded were 38,306. (Provisional)
Reliance Industries December 2022 futures traded at a premium of 11.90 points at 2595.10 (LTP) compared with spot closing of 2583.20. The numbers of contracts traded were 32,427. (Provisional)
Infosys December 2022 futures traded at a premium of 6.20 points at 1518.30 (LTP) compared with spot closing of 1512.10. The numbers of contracts traded were 25,472. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 6.25 points at 1626.25 (LTP) compared with spot closing of 1620.00. The numbers of contracts traded were 21,885. (Provisional)
AXIS Bank December 2022 futures traded at a premium of 3.00 points at 934.50 (LTP) compared with spot closing of 931.50. The numbers of contracts traded were 17,100. (Provisional)
Among, Nifty calls, 18500 SP from the December month expiry was the most active call with an addition of 30,918 units open interests. Among Nifty puts, 18000 SP from the December month expiry was the most active put with an addition of 15,112 units open interests. The maximum OI outstanding for Calls was at 18500 SP (1,03,885 units) and that for Puts was at 18000 SP (98,290 units). The respective Support and Resistance levels of Nifty are: Resistance 18394.05 -- Pivot Point 18278.40 -- Support -- 18083.45.
The Nifty Put Call Ratio (PCR) finally stood at (1.04) for December month contract. The top five scrips with highest PCR on Firstsource Solutions (0.94), Aditya Birla Capital (0.88), Cipla (0.84), Interglobe Aviation (0.83) and JSW Steel (0.83).
Among most active underlying, Adani Enterprises witnessed an addition of 2,479 units of Open Interest in the December month futures, Reliance Industries witnessed a contraction of 987 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 654 units of Open Interest in the December month futures, HDFC Bank witnessed a contraction of 641 units of Open Interest in the December month futures and AXIS Bank witnessed a contraction of 864 units of Open Interest in the December month futures. (Provisional)
