Indian equity benchmark -- Nifty -- ended Monday’s trading session on a negative note as traders took cautious approach on the back of upcoming Q3FY23 earnings. Market made a positive start as traders got some support with a private report stating that industry leaders have expressed confidence in India’s economy being resilient in the face of global headwinds in uncertainties, with the Confederation of Indian Industries’ Business Confidence Index achieving its highest reading in two years for the October-December quarter. However, in late morning session, market entered into a negative terrain as investors got cautious with a private report stating that India’s growth is likely to disappoint at 4.5% in 2023 due to global spillovers, prompting 75 basis point of rate cuts in second half of 2023.
In afternoon session, market trimmed most of its losses, but unable to hold recovery and continued its southward journey till the end of the day, as sentiments remained dismal after India’s December 2022 trade deficit rose 12.8% at $23.76 billion as against $21.10 billion December 2021. India's exports declined around 12% on a year-on-year basis to $34.48 billion in December 2022 as against $39.27 billion in the same month last year. Traders took a note of report that Union Education Minister Dharmendra Pradhan said that India has to become a manufacturing economy for achieving the 'Make in India' goal. He said India currently has the momentum to achieve it.
Most of the sectorial indices ended in red except FMCG, IT and PSU Bank. The top gainers from the F&O segment were Punjab National Bank, Tech Mahindra and IndiaMART InterMESH. On the other hand, the top losers were Jindal Steel & Power, Astral and PVR. 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 increased by 3.89% and reached 15.02. The 50 share Nifty down by 61.75 points or 0.34% to settle at 17,894.85.
Nifty January 2023 futures closed at 17941.50 (LTP) on Monday, at a premium of 46.65 points over spot closing of 17894.85, while Nifty February 2023 futures ended at 18016.00 (LTP), at a premium of 121.15 points over spot closing. Nifty January futures saw an addition of 2,615 units, taking the total open interest (Contracts) to 2,40,231 units. The near month derivatives contract will expire on January 25, 2023. (Provisional)
From the most active contracts, HDFC Bank January 2023 futures traded at a premium of 6.45 points at 1592.25 (LTP) compared with spot closing of 1585.80. The numbers of contracts traded were 30,104. (Provisional)
Federal Bank January 2023 futures traded at a premium of 0.50 points at 140.55 (LTP) compared with spot closing of 140.05. The numbers of contracts traded were 28,167. (Provisional)
Reliance Industries January 2023 futures traded at a premium of 8.00 points at 2452.50 (LTP) compared with spot closing of 2444.50. The numbers of contracts traded were 27,306. (Provisional)
ICICI Bank January 2023 futures traded at a premium of 2.80 points at 867.80 (LTP) compared with spot closing of 865.00. The numbers of contracts traded were 19,796. (Provisional)
Infosys January 2023 futures traded at a premium of 1.15 points at 1525.05 (LTP) compared with spot closing of 1523.90. The numbers of contracts traded were 19,407. (Provisional)
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with an addition of 16,408 units open interests. Among Nifty puts, 17800 SP from the January month expiry was the most active put with a contraction of 1,393 units open interests. The maximum OI outstanding for Calls was at 18500 SP (71,363 units) and that for Puts was at 17900 SP (62,107 units). The respective Support and Resistance levels of Nifty are: Resistance 18011.78 -- Pivot Point 17932.71 -- Support -- 17815.78.
The Nifty Put Call Ratio (PCR) finally stood at (1.03) for January month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.27), Multi Commodity Exchange Of India (0.89), IDFC (0.88), Max Financial Services (0.86) and Tata Motors (0.77).
Among most active underlying, HDFC Bank witnessed an addition of 3,021 units of Open Interest in the January month futures, The Federal Bank witnessed an addition of 1,703 units of Open Interest in the January month futures, Reliance Industries witnessed an addition of 5,397 units of Open Interest in the January month futures, Adani Enterprises witnessed an addition of 2,362 units of Open Interest in the January month futures and Axis Bank witnessed an addition of 2,279 units of Open Interest in the January month futures. (Provisional)
