Huge buying in the last leg of trade helped Nifty to close near intraday high point, as investors went for beaten down but fundamentally strong stocks. After making a cautious start, soon market turned optimistic to trade higher in early deals. Sentiments were positive as the Reserve Bank of India (RBI) in its report has said states’ gross fiscal deficit (GFD) is budgeted to decline from 4.1 per cent of gross domestic product (GDP) in Covid-hit 2020-21 to 3.4 per cent of GDP in 2022-23 showing improvement in their fiscal health. It stated the fiscal health of the states has improved from a sharp pandemic-induced deterioration in 2020-21 on the back of a broad-based economic recovery and resulting high revenue collections.
In afternoon session, index trimmed some of its gains on account of some profit booking. Traders took a note of report stating that the China GDP expanded at its slowest pace since the mid-1970s bar the Covid-hit 2020 year, as the world’s second-largest economy struggled under tight pandemic restrictions that were abruptly ditched late in 2022. However, during the last leg of trade, buying got intensified and market touched its intraday high point. Traders looked ahead to remarks from Federal Reserve speakers that could provide hints about the central bank’s policy plans and awaited key economic data. Finally, Nifty finished Tuesday’s session above 18050 mark.
Most of the sectorial indices ended in green except Media, Pharma and PSU Bank. The top gainers from the F&O segment were L&T, Cummins India and HUL. On the other hand, the top losers were Can Fin Homes, Indus Towers and Manappuram Finance. In the index option segment, maximum OI continues to be seen in the 18450 -18600 calls and 17950 -18050 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.87% and reached 14.59. The 50 share Nifty up by 158.45 points or 0.89% to settle at 18,053.30.
Nifty January 2023 futures closed at 18092.50 (LTP) on Tuesday, at a premium of 39.20 points over spot closing of 18053.30, while Nifty February 2023 futures ended at 18160.00 (LTP), at a premium of 106.70 points over spot closing. Nifty January futures saw an addition of 2,542 units, taking the total open interest (contracts) to 2,37,962 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 3.40 points at 2481.80 (LTP) compared with spot closing of 2478.40. The numbers of contracts traded were 28,944. (Provisional)
HDFC Bank January 2023 futures traded at a premium of 6.30 points at 1613.75 (LTP) compared with spot closing of 1607.45. The numbers of contracts traded were 26,697. (Provisional)
ICICI Bank January 2023 futures traded at a premium of 1.55 points at 868.55 (LTP) compared with spot closing of 867.00. The numbers of contracts traded were 24,160. (Provisional)
SBIN January 2023 futures traded at a premium of 1.80 points at 595.20 (LTP) compared with spot closing of 593.40. The numbers of contracts traded were 18,021. (Provisional)
Adani Enterprises January 2023 futures traded flat with spot closing of 3640.00. The numbers of contracts traded were 17,865. (Provisional)
Among, Nifty calls, 18100 SP from the January month expiry was the most active call with a contraction of 2,349 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 11,299 units open interests. The maximum OI outstanding for Calls was at 18500 SP (61,588 units) and that for Puts was at 18000 SP (76,339 units). The respective Support and Resistance levels of Nifty are: Resistance 18,121.25 -- Pivot Point 18,004.10 -- Support -- 17,936.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.12) for January month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.43), HCL Tech (0.89), Multi Commodity Exchange Of India (0.89), Max Financial Services (0.86) and IDFC (0.85).
Among most active underlying, HDFC Bank witnessed a contraction of 2,024 units of Open Interest in the January month futures, Reliance Industries witnessed an addition of 813 units of Open Interest in the January month futures, Adani Enterprises witnessed a contraction of 1,128 units of Open Interest in the January month futures, SBIN witnessed an addition of 2,372 units of Open Interest in the January month futures and ICICI Bank witnessed a contraction of 1,407 units of Open Interest in the January month futures. (Provisional)
