Indian equity benchmark -- Nifty -- ended in positive terrain with marginal gains ahead of the Union Budget 2023. Market made a slightly positive start, but soon slipped into red terrain, as traders were concerned with provisional data available on the NSE showing that foreign institutional investors (FII) have net-sold shares worth Rs 6,792.80 crore on January 30, 2023. In afternoon session, market trimmed most of its losses and traded near neutral line, as trader took some support with the International Monetary Fund’s (IMF) statement that inflation in India is expected to come down from 6.8 percent in the current fiscal year ending March 31 to 5 percent the next fiscal, and then drop further to 4 percent in 2024. Finally, market ended in green terrain with some gains, as investors got some support with the Union Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar’s statement that India is developing rapidly with science and innovation, both of them are deeply connected with the future of India.
Most of the sectorial indices ended in green except IT, Pharma, Healthcare Index and Oil & Gas. The top gainers from the F&O segment were Chambal Fertilisers & Chemicals, Bharat Electronics and Bharat Heavy Electricals. On the other hand, the top losers were Tata Consultancy Services, Bajaj Finance and Laurus Labs. 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 decreased by 4.71% and reached 16.88. The 50 share Nifty up by 13.20 points or 0.07% to settle at 17,662.15.
Nifty February 2023 futures closed at 17795.00 (LTP) on Tuesday, at a premium of 132.85 points over spot closing of 17662.15, while Nifty March 2023 futures ended at 17895.00 (LTP), at a premium of 232.85 points over spot closing. Nifty February futures saw an addition of 9,092 units, taking the total open interest (Contracts) to 2,18,609 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 11.30 points at 2959.30 (LTP) compared with spot closing of 2948.00. The numbers of contracts traded were 71,316. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 3.70 points at 617.00 (LTP) compared with spot closing of 613.30. The numbers of contracts traded were 55,041. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 7.65 points at 842.65 (LTP) compared with spot closing of 835.00. The numbers of contracts traded were 40,987. (Provisional)
State Bank of India February 2023 futures traded at a premium of 4.25 points at 561.20 (LTP) compared with spot closing of 556.95. The numbers of contracts traded were 31,977. (Provisional)
Reliance Industries February 2023 futures traded at a premium of 17.30 points at 2373.95 (LTP) compared with spot closing of 2356.65. The numbers of contracts traded were 28,317. (Provisional)
Among, Nifty calls, 17800 SP from the February month expiry was the most active call with a contraction of 584 units open interests. Among Nifty puts, 17600 SP from the February month expiry was the most active put with an addition of 13,804 units open interests. The maximum OI outstanding for Calls was at 18000 SP (52,502 units) and that for Puts was at 17500 SP (62,302 units). The respective Support and Resistance levels of Nifty are: Resistance 17752.71 -- Pivot Point 17645.13 -- Support -- 17554.56.
The Nifty Put Call Ratio (PCR) finally stood at (1.22) for February month contract. The top five scrips with highest PCR on IPCA Laboratories (1.92), Alkem Laboratories (1.33), Adani Ports and Special Economic Zone (1.31), LIC Housing Finance (1.18), and Cipla (1.08).
Among most active underlying, Adani Enterprises witnessed an addition of 8,108 units of Open Interest in the February month futures, State Bank of India witnessed an addition of 2,787 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 8,229 units of Open Interest in the February month futures, Adani Ports and Special Economic Zone witnessed an addition of 2,143 units of Open Interest in the February month futures and HDFC Bank witnessed an addition of 3,805 units of Open Interest in the February month futures. (Provisional)
