Indian equity benchmark -- Nifty -- closed Tuesday’s trading session on a negative note as traders were worried with repeated rate hikes by the Fed and other central banks to cool inflation that is at multi-decade highs might tip the world into recession. Market made a negative start of the trading session. Traders failed to draw any sense of relief with a private report stating that India's retail inflation is likely to remain steady in December, staying within the Reserve Bank of India's comfort zone for a second month as a moderation in food price rises was partly offset by elevated core inflation. It said retail inflation is likely remained steady at 5.9% in December.
Index extended its losses in afternoon session and finally ended lower by over a percent. Sentiments remained negative, amid a private report stating that the impact of COVID-19, combined with geopolitical turmoil, an economic crisis and natural disasters, has pushed social progress backwards. Sentiments also got hit after two Federal Reserve officials said the fed funds rate will need to surpass 5 percent in order to get inflation under control.
Most of the sectorial indices ended in red except Auto and Healthcare Index. The top gainers from the F&O segment were Tata Motors, Max Financial Services and Hindustan Copper. On the other hand, the top losers were Indiabulls Housing Finance, Punjab National Bank and Adani Enterprises. 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 increased by 5.85% and reached 15.51. The 50 share Nifty down by 187.05 points or 1.03% to settle at 17,914.15.
Nifty January 2023 futures closed at 17988.45 on Tuesday (LTP), at a premium of 74.30 points over spot closing of 17914.15, while Nifty February 2023 futures ended at 18055.90 (LTP), at a premium of 141.75 points over spot closing. Nifty January futures saw an addition of 17,327 units, taking the total open interest (Contracts) to 2,42,525 units. The near month derivatives contract will expire on January 25, 2023. (Provisional)
From the most active contracts, Tata Motors January 2023 futures traded at a premium of 2.20 points at 414.70 (LTP) compared with spot closing of 412.50. The numbers of contracts traded were 48,732. (Provisional)
Adani Enterprises January 2023 futures traded at a premium of 3.10 points at 3639.95 (LTP) compared with spot closing of 3636.85. The numbers of contracts traded were 41,090. (Provisional)
Tata Consultancy Services January 2023 futures traded at a premium of 12.00 points at 3295.00 (LTP) compared with spot closing of 3283.00. The numbers of contracts traded were 34,002. (Provisional)
Infosys January 2023 futures traded at a premium of 5.60 points at 1476.40 (LTP) compared with spot closing of 1470.80. The numbers of contracts traded were 26,011. (Provisional)
HDFC Bank January 2023 futures traded at a premium of 8.00 points at 1578.00 (LTP) compared with spot closing of 1570.00. The numbers of contracts traded were 25,173. (Provisional)
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with an addition of 16,170 units open interests. Among Nifty puts, 17800 SP from the January month expiry was the most active put with an addition of 3,468 units open interests. The maximum OI outstanding for Calls was at 19000 SP (52,150 units) and that for Puts was at 17000 SP (51,829 units). The respective Support and Resistance levels of Nifty are: Resistance 18075.83 -- Pivot Point 17965.91 -- Support -- 17804.23.
The Nifty Put Call Ratio (PCR) finally stood at (1.16) for January month contract. The top five scrips with highest PCR on IDFC (1.10), MRF (1.00), Gujarat Gas (0.95), IPCA Laboratories (0.91) and Tata Consultancy Services (0.85).
Among most active underlying, Adani Enterprises witnessed an addition of 4,773 units of Open Interest in the January month futures, Tata Motors witnessed an addition of 1,422 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 4,650 units of Open Interest in the January month futures, Tata Consultancy Services witnessed an addition of 2,842 units of Open Interest in the January month futures and Reliance Industries witnessed an addition of 385 units of Open Interest in the January month futures. (Provisional)
