The fifty stock index -- Nifty -- ended in positive terrain ahead of the Union Budget 2023. After making a negative start, market soon entered into positive, as traders took some support with latest data showing that the Reserve Bank of India’s (RBI’s) foreign exchange reserves climbed $1.7 billion to $573.73 billion in the week ended January 20. The rise was on account of an increase in the RBI’s foreign currency assets as well as its gold holdings. However, market cut all of its gains and traded below neutral line, as investors remained cautious with a report that foreign investors have pulled out a net of over Rs 17,000 crore this month so far due to the attractiveness of the Chinese markets and the cautious stance adopted by them ahead of the Union Budget and US Federal Reserve meeting.
In afternoon session, market extended its losses and slipped near day’s low point, as sentiments remained down-beat with a private survey report stating that more than half of households in a survey conducted online across 309 districts expect a decline in their income by up to 25 per cent and dip in savings, and are looking for relief in the coming budget. The survey, conducted between November 25 and January 25, found that with job losses and hiring sentiment turning negative, 52 per cent respondents feel that the economic uncertainty will persist for the next 6-12 months. At the end, market managed to keep its head above water as traders went for value buying.
Traders were seen piling positions in Bank, Financial Services and IT, while selling was witnessed in Auto, FMCG and Media sector. The top gainers from the F&O segment were Indus Towers, Intellect Design Arena and Vodafone Idea. On the other hand, the top losers were Exide Industries, GAIL (India) and Bharat Electronics. 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 2.25% and reached 17.71. The 50 share Nifty up by 44.60 points or 0.25% to settle at 17,648.95.
Nifty February 2023 futures closed at 17742.50 (LTP) on Monday, at a premium of 93.55 points over spot closing of 17648.95, while Nifty March 2023 futures ended at 17826.70 (LTP), at a premium of 177.75 points over spot closing. Nifty February futures saw an addition of 2,053 units, taking the total open interest (Contracts) to 2,21,092 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 17.65 points at 2887.50 (LTP) compared with spot closing of 2869.85. The numbers of contracts traded were 1,02,510. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 5.80 points at 606.60 (LTP) compared with spot closing of 600.80. The numbers of contracts traded were 91,366. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 4.70 points at 829.15 (LTP) compared with spot closing of 824.45. The numbers of contracts traded were 60,495. (Provisional)
State Bank of India February 2023 futures traded at a premium of 3.70 points at 544.95 (LTP) compared with spot closing of 541.25. The numbers of contracts traded were 44,425. (Provisional)
HDFC Bank February 2023 futures traded at a premium of 5.95 points at 1623.35 (LTP) compared with spot closing of 1617.40. The numbers of contracts traded were 38,091. (Provisional)
Among, Nifty calls, 17800 SP from the January month expiry was the most active call with an addition of 1,283 units open interests. Among Nifty puts, 17500 SP from the January month expiry was the most active put with a contraction of 1,753 units open interests. The maximum OI outstanding for Calls was at 18000 SP (50,923 units) and that for Puts was at 17500 SP (54,019 units). The respective Support and Resistance levels of Nifty are: Resistance 17770.21 -- Pivot Point 17587.88 -- Support -- 17466.61.
The Nifty Put Call Ratio (PCR) finally stood at (1.23) for January month contract. The top five scrips with highest PCR on IPCA Laboratories (2.33), Alkem Laboratories (1.76), LIC Housing Finance (1.21), Adani Ports and Special Economic Zone (1.20) and IDFC (1.06).
Among most active underlying, Adani Enterprises witnessed an addition of 7,130 units of Open Interest in the January month futures, State Bank of India witnessed an addition of 7,804 units of Open Interest in the January month futures, Adani Ports and Special Economic Zone witnessed an addition of 4,137 units of Open Interest in the January month futures, ICICI Bank witnessed an addition of 11,270 units of Open Interest in the January month futures and HDFC Bank witnessed an addition of 6,708 units of Open Interest in the January month futures. (Provisional)
