Indian equity benchmark -- Nifty -- closed Thursday’s trading session in a negative terrain with marginal cut, as after Union budget session, traders once again shifted their focus towards Adani Group’s news flow. After making a negative start, market traded volatile, as traders got cautious with Moody's Investors Service’s senior vice president, Christian de Guzman’s statement that the Indian federal government's aim to achieve a fiscal deficit target of 4.5% of gross domestic product (GDP) by 2025/26 (FY26) could see some risks. Guzman said the current pattern suggests that perhaps there could be some upward pressure on expenditure especially if they (government) continue with this focus on capex.
However, in the last hour of the trade, market cut almost all of its losses to end flat. Investors got support, as Commerce and Industry Minister Piyush Goyal said a number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports. Adding some relief among traders, Apparel Export Promotion Council (AEPC) said that various schemes, including a revamped credit guarantee scheme, announced in the Budget to support MSMEs and exporters will help promote the country's exports. Besides, Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman has said that India’s focus on wide ranging reforms and sound policies resulted in resilience during crises.
Traders were seen piling positions in FMCG, IT and Private Bank sector, while selling was witnessed in Metal, Oil & Gas and Healthcare Index stock. The top gainers from the F&O segment were Ambuja Cements, IDFC First Bank and Can Fin Homes. On the other hand, the top losers were Adani Ports and Special Economic Zone, Birlasoft and Adani Enterprises. 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 6.24% and reached 15.73. The 50 share Nifty down by 5.90 points or 0.03% to settle at 17,610.40.
Nifty February 2023 futures closed at 17667.70 (LTP) on Thursday, at a premium of 57.30 points over spot closing of 17610.40, while Nifty March 2023 futures ended at 17770.00 (LTP), at a premium of 159.60 points over spot closing. Nifty February futures saw an addition of 13,876 units, taking the total outstanding open interest (Contracts) to 2,22,454 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 2.35 points at 461.85 (LTP) compared with spot closing of 459.50. The numbers of contracts traded were 1,52,256. (Provisional)
Adani Enterprises February 2023 futures traded at a premium of 13.55 points at 1578.85 (LTP) compared with spot closing of 1565.30. The numbers of contracts traded were 1,33,514. (Provisional)
State Bank of India February 2023 futures traded at a premium of 3.65 points at 535.75 (LTP) compared with spot closing of 532.10. The numbers of contracts traded were 50,606. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 3.50 points at 860.55 (LTP) compared with spot closing of 857.05. The numbers of contracts traded were 48,261. (Provisional)
ITC February 2023 futures traded at a discount of 5.55 points at 373.25 (LTP) compared with spot closing of 378.80. The numbers of contracts traded were 40,878. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 2,886 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with a contraction of 718 units open interests. The maximum OI outstanding for Calls was at 18000 SP (58,187 units) and that for Puts was at 17500 SP (61,023 units). The respective Support and Resistance levels of Nifty are: Resistance 17694.21 -- Pivot Point 17570.08 -- Support -- 17486.26.
The Nifty Put Call Ratio (PCR) finally stood at (1.12) for February month contract. The top five scrips with highest PCR on IPCA Laboratories (1.94), ACC (1.55) Adani Ports and Special Economic Zone (1.41), LIC Housing Finance (1.25) and Cipla (0.96).
Among most active underlying, ADANI Enterprises witnessed an addition of 5,711 units of Open Interest in the February month futures, Adani Ports and Special Economic Zone witnessed an addition of 13,827 units of Open Interest in the February month futures, State Bank of India witnessed an addition of 5,895 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 8,287 units of Open Interest in the February month futures and HDFC Bank witnessed an addition of 5,751 units of Open Interest in the February month futures. (Provisional)
