Indian equity benchmark -- Nifty -- ended Friday’s trading session on positive note with over half a percent gains as traders turned their attention towards fundamentally strong stocks. Market made slightly positive start, but soon turned negative and remained lower during the first half of the trading session, as traders were cautious with a private report stating that the Centre as well as state governments are likely to budget for higher market borrowings next fiscal even though the Union Budget may peg a lower-than-expected fiscal deficit at 5.8 per cent of GDP.
However, in afternoon session, market erased all of its losses and entered into positive terrain as some support came with data showing that India's industrial growth, as per the Index of Industrial Production (IIP), accelerated to 7.1 percent in November 2022. IIP growth returned to positive territory in November after it had contracted by 4 percent in October - the industry's worst performance in 26 months. Besides, India’s retail inflation or consumer price index (CPI) declined to a one-year low of 5.72 per cent in December 2022. The CPI was at 5.88 per cent in November 2022 and 5.66 per cent in December 2021. At the end, market finished with over half a percent gains.
Most of the sectorial indices ended in green except FMCG, Pharma, Healthcare Index and Consumer Durables. The top gainers from the F&O segment were Multi Commodity Exchange of India, Rain Industries and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Bata India, Gujarat Gas and L&T Technology Services. In the index option segment, maximum OI continues to be seen in the 18400 -18600 calls and 17800 -18000 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 5.33% and reached 14.46. The 50 share Nifty up by 98.40 points or 0.55% to settle at 17,956.60.
Nifty January 2023 futures closed at 18022 (LTP) on Friday, at a premium of 65.40 points over spot closing of 17956.60, while Nifty February 2023 futures ended at 18098.00 (LTP), at a premium of 141.40 points over spot closing. Nifty January futures saw an addition of 12,375 units, taking the total open interest (Contracts) to 12,375 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 10.35 points at 2478.25 (LTP) compared with spot closing of 2467.90. The numbers of contracts traded were 44,310. (Provisional)
Infosys January 2023 futures traded at a premium of 4.95 points at 1508.95 (LTP) compared with spot closing of 1504.00. The numbers of contracts traded were 41,572. (Provisional)
ICICI Bank January 2023 futures traded at a premium of 3.40 points at 874.40 (LTP) compared with spot closing of 871.00. The numbers of contracts traded were 24,775. (Provisional)
HCL Technologies January 2023 futures traded at a discount of 6.80 points at 1070.20 (LTP) compared with spot closing of 1077.00. The numbers of contracts traded were 20,920. (Provisional)
HDFC Bank January 2023 futures traded at a premium of 5.50 points at 1606.50 (LTP) compared with spot closing of 1601.00. The numbers of contracts traded were 19,815. (Provisional)
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with a contraction on of 149 units open interests. Among Nifty puts, 17800 SP from the January month expiry was the most active put with an addition of 2,707 units open interests. The maximum OI outstanding for Calls was at 18500 SP (57,601 units) and that for Puts was at 17900 SP (61,488 units). The respective Support and Resistance levels of Nifty are: Resistance 18045.88 -- Pivot Point 17910.06 -- Support -- 17820.78.
The Nifty Put Call Ratio (PCR) finally stood at (1.13) for January month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.25), Multi Commodity Exchange Of India (0.94), Jindal Steel & Power (0.91), Cholamandalam Investment and Finance Company (0.84) and IDFC (0.82).
Among most active underlying, Reliance Industries witnessed an addition of 4,469 units of Open Interest in the January month futures, Infosys witnessed a contraction of 734 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 2,439 units of Open Interest in the January month futures, HCL Technologies witnessed an addition of 2,798 units of Open Interest in the January month futures and ICICI Bank witnessed an addition of 2,534 units of Open Interest in the January month futures. (Provisional)
