Nifty ends higher on Thursday

Indian equity benchmark -- Nifty -- ended in positive terrain due to last hour buying.  Market made a negative start as traders were worried with reports that surging infections in China could trigger fresh outbreaks elsewhere after Beijing dropped zero-COVID policy and reopened economy. Besides, some cautiousness also came in with a private report stating that after three consecutive years of infusing huge funds, foreign portfolio investors retreated from the Indian equity markets in a big way in 2022 with the highest-ever yearly net outflow of nearly Rs 1.21 lakh crore.

In afternoon session, market continued to trade in negative terrain, as traders remained cautious with RBI Monetary Policy Committee (MPC) Member Ashima Goyal’s statement that the government should not go in for an 'aggressive fiscal consolidation' in the upcoming budget as global risks have not abated. However, in final leg of trade, market erased all the losses and entered into positive terrain as traders went for beaten down but fundamentally strong stocks. Traders got some support with report stating that free trade agreement (FTA) between India and Australia, which comes into effect from December 29, 2022, will help boost bilateral trade in goods and services to cross $70 billion in the next five years.

Most of the sectorial indices ended in green except FMCG, Media, Healthcare Index and Consumer Durables. The top gainers from the F&O segment were Indiabulls Housing Finance, Federal Bank and Bank of Baroda. On the other hand, the top losers were Amara Raja Batteries, Shree Cement and Shriram 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 3.78% and reached 14.81. The 50 share Nifty up by 68.50 points or 0.38% to settle at 18,191.00.

Nifty January 2023 futures closed at 18299.00 (LTP) on Thursday, at a premium of 108.00 points over spot closing of 18191.00, while Nifty February 2023 futures ended at 18372.00 (LTP), at a premium of 181.00 points over spot closing.  Nifty January futures saw an addition of 57,662 units, taking the total open interest (Contracts) to 2,12,684 units. The near month derivatives contract will expire on January 25, 2023. (Provisional)  

From the most active contracts, Reliance Industries January 2023 futures traded at a premium of 13.20 points at 2558.15 (LTP) compared with spot closing of 2544.95. The numbers of contracts traded were 64,832. (Provisional)  

ICICI Bank January 2023 futures traded at a premium of 3.00 points at 911.00 (LTP) compared with spot closing of 908.00. The numbers of contracts traded were 31,962. (Provisional)  

Adani Ports and Special Economic Zone January 2023 futures traded at a premium of 3.05 points at 824.00 (LTP) compared with spot closing of 820.95. The numbers of contracts traded were 29,307. (Provisional)  

HDFC Bank January 2023 futures traded at a premium of 7.55 points at 1646.65 (LTP) compared with spot closing of 1639.10. The numbers of contracts traded were 28,206. (Provisional)  

Tata Motors January 2023 futures traded at a premium of 2.50 points at 389.00 (LTP) compared with spot closing of 386.50. The numbers of contracts traded were 26,961. (Provisional)  

Among, Nifty calls, 18500 SP from the January month expiry was the most active call with an addition of 2,704 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 7,736 units open interests. The maximum OI outstanding for Calls was at 19000 SP (41,088 units) and that for Puts was at 18000 SP (64,935 units). The respective Support and Resistance levels of Nifty are: Resistance 18282.86 -- Pivot Point 18137.83 -- Support -- 18045.96.

The Nifty Put Call Ratio (PCR) finally stood at (1.50) for January month contract. The top five scrips with highest PCR on Max Financial Services (1.56), Balkrishna Industries (1.50), Ramco Cements (1.43), Britannia Industries (1.27), and IPCA Laboratories (1.25).

Among most active underlying, Reliance Industries witnessed an addition of 38,818 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 10,610 units of Open Interest in the January month futures Housing Development Finance Corporation witnessed an addition of 17,522 units of Open Interest in the January month futures, ICICI Bank witnessed an addition of 6,343 units of Open Interest in the January month futures and State Bank of India witnessed an addition of 4,146 units of Open Interest in the January month futures. (Provisional)