Nifty ends higher for second consecutive day

In a volatile trading session, Indian equity benchmark -- Nifty -- managed to conclude the day’s trade in positive territory. Market traded with volatility throughout the day, as traders were cautious ahead of minutes from the U.S. Federal Reserve's latest policy meeting due this week. Soon after making negative start, index entered into positive territory and maintained its head above neutral line in morning deals, helped by positive cues from other Asian markets. However, index again turned negative in afternoon session, as traders opted for some profit booking. Traders got anxious with IMF chief’s statement that one third of the global economy will be in recession this year, and warned that 2023 will be tougher than last year as the US, EU and China will see their economies slow down.

But, selling proved short-lived as market bounced back in late afternoon trade. Finally, Nifty concluded the day’s trade above 18200 mark. Traders took a note of Assocham’s statement that India's economy is expected to navigate rough global weather in 2023 due to resilient consumer demand, better corporate performance and abating of inflation, even as the year is likely to be full of challenges and opportunities.

Most of the sectorial indices ended in green except Auto, FMCG and Media. The top gainers from the F&O segment were HDFC Life Insurance Company, PFC and Metropolis Healthcare. On the other hand, the top losers were TVS Motors, M&MFIN 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 2.04% and reached 14.39. The 50 share Nifty up by 35.10 points or 0.19% to settle at 18,232.55.

Nifty January 2023 futures closed at 18315.00 (LTP) on Tuesday, at a premium of 82.45 points over spot closing of 18232.55 , while Nifty February 2023 futures ended at 18390.05 (LTP) , at a premium of 157.50 points over spot closing. Nifty January futures saw an addition of 14,003 units, taking the total open interest (contracts) to 2,27,766 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 16.60 points at 2572.40 (LTP) compared with spot closing of 2555.80. The numbers of contracts traded were 22,437. (Provisional)

Axis Bank January 2023 futures traded at a premium of 5.95 points at 968.35 (LTP) compared with spot closing of 962.40. The numbers of contracts traded were 17,121. (Provisional)

ICICI Bank January 2023 futures traded at a premium of 5.70 points at 907.95 (LTP) compared with spot closing of 902.25. The numbers of contracts traded were 15,543. (Provisional)

HDFC Bank January 2023 futures traded at a premium of 4.40 points at 1644.90 (LTP) compared with spot closing of 1640.50. The numbers of contracts traded were 14,329. (Provisional)

Tata Steel January 2023 futures traded at a premium of 0.80 points at 119.30 (LTP) compared with spot closing of 118.50. The numbers of contracts traded were 13,024. (Provisional)

Among, Nifty calls, 18500 SP from the January month expiry was the most active call with an addition of 3,588 units open interests. Among Nifty puts, 18200 SP from the January month expiry was the most active put with an addition of 6,821 units open interests. The maximum OI outstanding for Calls was at 19000 SP (53,657 units) and that for Puts was at 18000 SP (72,800 units). The respective Support and Resistance levels of Nifty are: Resistance 18,273.07 -- Pivot Point 18,211.43 -- Support -- 18,170.92.

The Nifty Put Call Ratio (PCR) finally stood at (1.40) for January month contract. The top five scrips with highest PCR on IPCA Laboratories (1.06), RBL Bank (1.00), Canara Bank (1.00), Indigo (0.92) and IDFC (0.92).

Among most active underlying, Axis Bank witnessed an addition of 788 units of Open Interest in the January month futures, Reliance Industries witnessed an addition of 3,556 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 2,345 units of Open Interest in the January month futures.  (Provisional)