Indian equity benchmark -- Nifty -- continued its southward journey for second consecutive day, as investors were cautious ahead of the Union Budget 2023, which will be presented by Finance Minister Nirmala Sitharaman on February 1. Market made a slightly negative start and soon extended its losses, as sentiments were under pressure with United Nations’ report stating that global economic growth is projected to slow to 1.9% this year from an estimated 3% in 2022. The report blamed the COVID-19 pandemic, Russia's war in Ukraine, high inflation and the climate crisis. It said this would mark one of the lowest growth rates in recent decades.
Market traded in deep sea of red in afternoon session, as sentiments were down-beat with a private report stating that private equity (PE) and venture capital (VC) investments in Asia-Pacific excluding Japan continued their downward trajectory when 2022 closed. According to data from S&P Global Market Intelligence, deals totaled $5.39 billion across 42 announced and completed transactions in the fourth quarter of 2022, compared to $20.07 billion across 79 transactions in the same period in 2021. In final leg of trade, market held southward journey and ended deeply in red.
Most of the sectorial indices ended in red except Auto, FMCG, Pharma and Healthcare Index. The top gainers from the F&O segment were Tata Motors, Bajaj Auto and PVR. On the other hand, the top losers were Ambuja Cements, Adani Enterprises and Dixon Technologies (India). In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 17450 -17550 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 18.18% and reached 17.32. The 50 share Nifty down by 287.60 points or 1.61% to settle at 17,604.35.
Nifty February 2023 futures closed at 17694.95 (LTP) on Friday, at a premium of 90.60 points over spot closing of 17604.35, while Nifty March 2023 futures ended at 17785.00 (LTP), at a premium of 180.65 points over spot closing. Nifty February futures saw an addition of 35,669 units, taking the total open interest (Contracts) to 2,33,081 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, Adani Enterprises February 2023 futures traded at a premium of 15.10 points at 2783.60 (LTP) compared with spot closing of 2768.50. The numbers of contracts traded were 1,08,849. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 4.55 points at 609.05 (LTP) compared with spot closing of 604.50. The numbers of contracts traded were 1,04,507. (Provisional)
Ambuja Cements February 2023 futures traded at a premium of 2.20 points at 385.70 (LTP) compared with spot closing of 383.50. The numbers of contracts traded were 75,043. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 5.80 points at 824.05 (LTP) compared with spot closing of 818.25. The numbers of contracts traded were 62,415. (Provisional)
Tata Motors February 2023 futures traded at a premium of 3.25 points at 448.50 (LTP) compared with spot closing of 445.25. The numbers of contracts traded were 50,189. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 10,807 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with an addition of 13,074 units open interests. The maximum OI outstanding for Calls was at 18000 SP (50,169 units) and that for Puts was at 17500 SP (60,404 units). The respective Support and Resistance levels of Nifty are: Resistance 17828.21 -- Pivot Point 17660.88 -- Support -- 17437.01.
The Nifty Put Call Ratio (PCR) finally stood at (1.34) for February month contract. The top five scrips with highest PCR on IPCA Laboratories (3.31), Alkem Laboratories (1.96), Honeywell Automation India (1.53), Coromandel International (1.35), and Marico (1.26).
Among most active underlying, Adani Enterprises witnessed an addition of 3,595 units of Open Interest in the February month futures, Ambuja Cements witnessed an addition of 5,370 units of Open Interest in the February month futures, HDFC Bank witnessed an addition of 12,263 units of Open Interest in the February month futures, Adani Ports and Special Economic Zone witnessed an addition of 8,647 units of Open Interest in the February month futures and ICICI Bank witnessed an addition of 10,292 units of Open Interest in the February month futures. (Provisional)
