Nifty snaps 3-day losing streak on Monday

Indian equity benchmark -- Nifty -- ended Monday’s trading day on positive note and broke 3-day losing streak, as traders were largely positive on hints of less aggressive Fed rate hikes and signs of easing inflation. Market made an optimistic start, as investors took support with latest central bank data showing that the Reserve Bank of India’s foreign exchange reserves rose by $44 million to $562.85 billion in the week ended December 30. In afternoon session, market trimmed some of its gains, as advanced estimates of National Income for 2022-23 revealed by the National Statistical Office (NSO) showed that Indian economy is likely to grow at 7 per cent in 2022-23 as compared to 8.7 per cent in 2021-22. But, market again added gains, as trader took support with Finance Minister Nirmala Sitharaman’s statement that the central government is engaging with states and local administrations to ensure that benefits of Ease of Doing Business (EoDB) initiatives reach the ground. She said EoDB is not just the Centre's responsibility but that of states as well.

Most of the sectorial indices ended in green except Consumer Durables. The top gainers from the F&O segment were L&T Finance Holdings, Intellect Design Arena and Persistent Systems. On the other hand, the top losers were City Union Bank, Trent and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 18900 -19100 calls and 16900 -17100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.47% and reached 14.65. The 50 share Nifty up by 241.75 points or 1.35% to settle at 18,101.20.

Nifty January 2023 futures closed at 18161.80 (LTP) on Monday, at a premium of 60.60 points over spot closing of 18101.20 (LTP), while Nifty February 2023 futures ended at 18230.00, at a premium of 128.80 points over spot closing. Nifty January futures saw an addition of 5,745 units, taking the total outstanding open interest (Contracts) to 2,36,176 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 8.00 points at 2602.00 (LTP) compared with spot closing of 2594.00. The numbers of contracts traded were 39,403. (Provisional)

Tata Consultancy Services January 2023 futures traded at a premium of 5.50 points at 3314.50 (LTP) compared with spot closing of 3309.00. The numbers of contracts traded were 33,202. (Provisional)

ICICI Bank January 2023 futures traded at a premium of 5.20 points at 877.80 (LTP) compared with spot closing of 872.60. The numbers of contracts traded were 30,242. (Provisional)

Infosys January 2023 futures traded at a premium of 6.70 points at 1492.20 (LTP) compared with spot closing of 1485.50. The numbers of contracts traded were 25,562. (Provisional)

HDFC Bank January 2023 futures traded at a premium of 7.20 points at 1605.15 (LTP) compared with spot closing of 1597.95. The numbers of contracts traded were 18,278. (Provisional)

Among, Nifty calls, 18200 SP from the January month expiry was the most active call with a contraction of 8,283 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 6,274 units open interests. The maximum OI outstanding for Calls was at 19000 SP (54,128 units) and that for Puts was at 17000 SP (60,959 units). The respective Support and Resistance levels of Nifty are: Resistance 18183.01 -- Pivot Point 18059.58 -- Support -- 17977.76.

The Nifty Put Call Ratio (PCR) finally stood at (1.26) for January month contract. The top five scrips with highest PCR on IDFC (1.17), Tata Consultancy Services (1.04), RBL Bank (0.97), IPCA Laboratories (0.89) and MRF (0.88).

Among most active underlying, Reliance Industries witnessed a contraction of 1,752 units of Open Interest in the January month futures, Tata Consultancy Services witnessed an addition of 3,411 units of Open Interest in the January month futures, ICICI Bank witnessed an addition of 4,913 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 1,412 units of Open Interest in the January month futures and Infosys witnessed an addition of 4,586 units of Open Interest in the January month futures. (Provisional)