Indian equity benchmark -- Nifty -- closed on an optimistic note, with half a percent gains on Monday. After making a powerful start, market traded in positive terrain during the whole day, as investors remained optimistic after India’s forex reserves zoomed by $10.417 billion to $572 billion as on January 13, making it one of the biggest weekly jumps in the kitty in recent times. In the previous reporting week, the overall reserves had dropped by $1.268 billion to $561.583 billion. Some support also came with a UK Foreign Office minister’s statement that negotiations between Britain and India for an ambitious Free Trade Agreement (FTA) are ‘well advanced’, with the next round of talks set to commence very soon. He also asserted that a strong deal could boost the country's economy.
In afternoon session, market trimmed some of its gains, as some cautiousness came with a private report stating that the Indian government is set to tap the brakes on a torrid pace of capital investment growth in the coming fiscal year as a slowing economy limits spending power by weakening tax revenue. But, market remained higher and finished the day in positive terrain, as traders took support with a labour ministry stating that retail inflation for farm and rural workers sequentially eased to 6.38 per cent and 6.6 per cent, respectively, in December 2022, mainly due to lower prices of certain food items.
Most of the sectorial indices ended in green except Metal and Realty. The top gainers from the F&O segment were Torrent Power, Coforge and Can Fin Homes. On the other hand, the top losers were Dalmia Bharat, UltraTech Cement and Shree Cement. In the index option segment, maximum OI continues to be seen in the 18900 -19050 calls and 18050 -18150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.23% and reached 13.62. The 50 share Nifty up by 90.90 points or 0.50% to settle at 18,118.55.
Nifty January 2023 futures closed at 18150.80 (LTP) on Monday, at a premium of 32.25 points over spot closing of 18118.55, while Nifty February 2023 futures ended at 18231.95 (LTP), at a premium of 113.40 points over spot closing. Nifty January futures saw an addition of 10,089 units, taking the total open interest (Contracts) to 2,18,368 units. The near month derivatives contract will expire on January 25, 2023. (Provisional)
From the most active contracts, ICICI Bank January 2023 futures traded at a premium of 0.85 points at 870.45 (LTP) compared with spot closing of 869.60. The numbers of contracts traded were 59,160. (Provisional)
Reliance Industries January 2023 futures traded at a premium of 1.95 points at 2429.95 (LTP) compared with spot closing of 2428.00. The numbers of contracts traded were 56,483. (Provisional)
Kotak Mahindra Bank January 2023 futures traded at a premium of 6.25 points at 1788.00 (LTP) compared with spot closing of 1781.75. The numbers of contracts traded were 37,609. (Provisional)
HDFC Bank January 2023 futures traded at a premium of 0.10 points at 1672.00 (LTP) compared with spot closing of 1671.90. The numbers of contracts traded were 34,428. (Provisional)
Adani Ports and Special Economic Zone January 2023 futures traded at a premium of 0.55 points at 768.30 (LTP) compared with spot closing of 767.75. The numbers of contracts traded were 32,598. (Provisional)
Among, Nifty calls, 18200 SP from the January month expiry was the most active call with an addition of 25,364 units open interests. Among Nifty puts, 18100 SP from the January month expiry was the most active put with an addition of 72,507 units open interests. The maximum OI outstanding for Calls was at 19000 SP (2,31,418 units) and that for Puts was at 18100 SP (2,27,298 units). The respective Support and Resistance levels of Nifty are: Resistance 18166.28 -- Pivot Point 18114.86 -- Support -- 18067.13.
The Nifty Put Call Ratio (PCR) finally stood at (0.84) for January month contract. The top five scrips with highest PCR on Max Financial Services (1.36), Persistent Systems (1.35), Tata Consultancy Services (1.29), Coforge (1.18) and IDFC (1.05).
Among most active underlying, ICICI Bank witnessed an addition of 4,210 units of Open Interest in the January month futures, Reliance Industries witnessed an addition of 5,897 units of Open Interest in the January month futures, HDFC Bank witnessed a contraction of 508 units of Open Interest in the January month futures, Kotak Mahindra Bank witnessed a contraction of 272 units of Open Interest in the January month futures and Ambuja Cements witnessed an addition of 936 units of Open Interest in the January month futures. (Provisional)
