The fifty stock index -- Nifty -- ended in negative terrain and crash like house of card, as traders were cautious ahead of U.S. GDP data and January F&O expiry. After making slightly negative start, soon market extended its losses and started southward journey, as sentiments were down-beat with private report stating that Venture capital (VC) investments in Indian startups plunged over 38 per cent in 2022 as economic uncertainty and market volatility affected fundraising and investment activities. Beside, market participants also remained cautious ahead of the Union Budget due to be unveiled next week. Sustained foreign fund outflows weighted down on the domestic sentiments. Foreign institutional investors (FII) have net sold shares worth Rs 760.51 crore on January 24, as per provisional data available on the NSE. In afternoon session, market traded near intraday low point as investors remained concerned with ICRA Ratings’ statement that after remaining stable for many weeks, the cost of borrowing for states inched up by 5 basis points to 7.64 per cent at Tuesday's auction when 15 of them raised Rs 25,700 crore from the market. Finally, market ends with deep cut and settled below 17,900 mark.
All the sectorial indices ended in red. The top gainers from the F&O segment were TVS Motor Company, Max Financial Services and Bajaj Auto. On the other hand, the top losers were Ambuja Cements, ACC and Indus Towers. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16950 -17050 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 7.30% and reached 14.66. The 50 share Nifty down by 226.35 points or 1.25% to settle at 17,891.95.
Nifty February 2023 futures closed at 17988.70 (LTP) on Wednesday, at a premium of 96.75 points over spot closing of 17891.95, while Nifty March 2023 futures ended at 18085.00 (LTP), at a premium of 193.05 points over spot closing. Nifty February futures saw an addition of 78,697 units, taking the total open interest (Contracts) to 2,08,137 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, Reliance Industries February 2023 futures traded at a premium of 11.90 points at 2395.90 (LTP) compared with spot closing of 2384.00. The numbers of contracts traded were 79,705. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 4.05 points at 860.55 (LTP) compared with spot closing of 856.50. The numbers of contracts traded were 61,770. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 4.35 points at 718.90 (LTP) compared with spot closing of 714.55. The numbers of contracts traded were 58,575. (Provisional)
Ambuja Cements February 2023 futures traded at a premium of 3.50 points at 467.70 (LTP) compared with spot closing of 464.20. The numbers of contracts traded were 43,792. (Provisional)
Adani Enterprises February 2023 futures traded at a premium of 12.90 points at 3417.90 (LTP) compared with spot closing of 3405.00. The numbers of contracts traded were 42,770. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 18,453 units open interests. Among Nifty puts, 17000 SP from the February month expiry was the most active put with an addition of 3,337 units open interests. The maximum OI outstanding for Calls was at 18000 SP (39,991 units) and that for Puts was at 17000 SP (49,301 units). The respective Support and Resistance levels of Nifty are: Resistance 18046.31 -- Pivot Point 17946.23 -- Support -- 17791.86.
The Nifty Put Call Ratio (PCR) finally stood at (1.43) for February month contract. The top five scrips with highest PCR on IPCA Laboratories (6.85), Honeywell Automation India (5.33), Coromandel International (1.75), Alkem Laboratories (1.28) and United Breweries (1.18).
Among most active underlying, Reliance Industries witnessed an addition of 46,643 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 24,983 units of Open Interest in the February month futures, Ambuja Cements witnessed an addition of 12,687 units of Open Interest in the February month futures, Adani Enterprises witnessed an addition of 8,285 units of Open Interest in the February month futures and State Bank of India witnessed an addition of 15,674 units of Open Interest in the February month futures. (Provisional)
