Indian equity benchmark -- Nifty -- ended in positive terrain with over half a percent gains, as investors drawn their attention towards budget expectations. After making a cautious start, market soon started its northward journey as investors remained energized with a private report stating that the government is likely to increase the allocation for the ongoing Production-Linked Incentive (PLI) schemes by as much as 20-30 per cent in the next Budget to spur domestic manufacturing and boost exports.
Market extended gains in late morning deals to trade near intraday high point, as sentiment remained upbeat with IMF Deputy Managing Director Gita Gopinath’s statement that there's a lot of positive sentiment towards India. She highlighted areas that need more reforms to attract more manufacturing FDI. Finally, market ended on positive note with strong gains. Traders took a note of the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Anurag Jain's statement that several other steps are underway on further improving ease of doing business in India, including on the labour laws front.
Most of the sectorial indices ended in green except Auto, PSU Bank and Oil & Gas. The top gainers from the F&O segment were Siemens, Steel Authority of India and Max Financial Services. On the other hand, the top losers were Bank of Baroda, Delta Corp and ICICI Lombard General Insurance Company. In the index option segment, maximum OI continues to be seen in the 18900 -19100 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 1.49% and reached 14.37. The 50 share Nifty up by 112.05 points or 0.62% to settle at 18,165.35.
Nifty January 2023 futures closed at 18204.10 (LTP) on Wednesday, at a premium of 38.75 points over spot closing of 18165.35, while Nifty February 2023 futures ended at 18284.00 (LTP), at a premium of 118.65 points over spot closing. Nifty January futures saw a contraction of 232 units, taking the total open interest (Contracts) to 2,30,852 units. The near month derivatives contract will expire on January 25, 2023. (Provisional)
From the most active contracts, Adani Enterprises January 2023 futures traded at a discount of 2.80 points at 3582.10 (LTP) compared with spot closing of 3584.90. The numbers of contracts traded were 39,378. (Provisional)
HDFC Bank January 2023 futures traded at a premium of 0.35 points at 1637.50 (LTP) compared with spot closing of 1637.15. The numbers of contracts traded were 38,755. (Provisional)
Reliance Industries January 2023 futures traded at a premium of 3.85 points at 2478.55 (LTP) compared with spot closing of 2474.70. The numbers of contracts traded were 26,295. (Provisional)
ICICI Bank January 2023 futures traded at a premium of 1.25 points at 871.50 (LTP) compared with spot closing of 870.25. The numbers of contracts traded were 24,330. (Provisional)
Kotak Mahindra Bank January 2023 futures traded at a premium of 3.70 points at 1803.20 (LTP) compared with spot closing of 1799.50. The numbers of contracts traded were 18,456. (Provisional)
Among, Nifty calls, 18200 SP from the January month expiry was the most active call with an addition of 15,373 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with an addition of 36,747 units open interests. The maximum OI outstanding for Calls was at 19000 SP (68,375 units) and that for Puts was at 18000 SP (1,11,076 units). The respective Support and Resistance levels of Nifty are: Resistance 18221.91 -- Pivot Point 18127.18 -- Support -- 18070.61.
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 (1.39), Larsen & Toubro (1.05), Max Financial Services (1.00), Tata Steel (0.95) and Multi Commodity Exchange Of India (0.93).
Among most active underlying, Adani Enterprises witnessed an addition of 2,699 units of Open Interest in the January month futures, HDFC Bank witnessed an addition of 2,135 units of Open Interest in the January month futures, Reliance Industries witnessed an addition of 3,195 units of Open Interest in the January month futures, ICICI Bank witnessed an addition of 5,297 units of Open Interest in the January month futures and Kotak Mahindra Bank witnessed an addition of 352 units of Open Interest in the January month futures. (Provisional)
