Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in positive terrain, snapping 2-days losing streak, after the Reserve Bank of India’s Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points to 6.5%. Market made a slightly positive start, but soon extended its gains. Traders got relief, after Federal Reserve Chair Jerome Powell’s comments indicating inflation has started easing. Investors cheered Powell’s comments on disinflation, hoping they indicated the central bank could continue slowing on its interest rate hike campaign.
In afternoon session, market continued to trade higher, as the Reserve Bank projected India's economic growth at 6.4 per cent for 2023-24, broadly in line with the estimate of the Economic Survey tabled in Parliament last week. Besides, the Reserve Bank projected retail inflation to ease to 5.3 per cent in next fiscal from 6.5 per cent this year on assumptions of lower imported inflation, even though core inflation remains sticky. In last leg of session, market held its strong gains to end on a higher note, as sentiments remained upbeat with a private report stating that loans amounting to Rs 15,626 crore have been sanctioned under Agriculture Infrastructure Fund to create 21,380 infrastructure units at an aggregate investment of more than Rs 32,000 crore all over the country till January this year. The Central Government is providing grants-in-aid to states to promote Agriculture Infrastructure Fund and to improve agriculture.
All the sectorial indices ended in green. The top gainers from the F&O segment were Adani Enterprises, Adani Ports and Special Economic Zone and Aurobindo Pharma. On the other hand, the top losers were Power Grid Corporation of India, Manappuram Finance and Coal 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 decreased by 3.75% and reached 13.60. The 50 share Nifty up by 150.20 points or 0.85% to settle at 17,871.70.
Nifty February 2023 futures closed at 17908.65 (LTP) on Wednesday, at a premium of 36.95 points over spot closing of 17871.70, while Nifty March 2023 futures ended at 18012.35 (LTP), at a premium of 140.65 points over spot closing. Nifty February futures saw a contraction of 167 units, taking the total open interest (Contracts) to 2,10,162 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 0.10 points at 2220.10 (LTP) compared with spot closing of 2220.00. The numbers of contracts traded were 81,671. (Provisional)
Reliance Industries February 2023 futures traded at a premium of 12.35 points at 2362.00 (LTP) compared with spot closing of 2349.65. The numbers of contracts traded were 45,473. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 2.75 points at 605.75 (LTP) compared with spot closing of 603.00. The numbers of contracts traded were 43,261. (Provisional)
Bajaj Finance February 2023 futures traded at a premium of 20.10 points at 6355.30 (LTP) compared with spot closing of 6335.20. The numbers of contracts traded were 21,594. (Provisional)
State Bank of India February 2023 futures traded at a premium of 0.85 points at 551.60 (LTP) compared with spot closing of 550.75. The numbers of contracts traded were 19,508. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with a contraction of 3,792 units open interests. Among Nifty puts, 17800 SP from the February month expiry was the most active put with an addition of 6,297 units open interests. The maximum OI outstanding for Calls was at 18000 SP (66,639 units) and that for Puts was at 17500 SP (75,248 units). The respective Support and Resistance levels of Nifty are: Resistance 17932.21 -- Pivot Point 17838.18 -- Support -- 17777.66.
The Nifty Put Call Ratio (PCR) finally stood at (1.23) for February month contract. The top five scrips with highest PCR on Voltas (1.53), ACC (1.49), Zydus Lifesciences (1.37), Mahindra & Mahindra Financial Services (1.23) and MRF (1.14).
Among most active underlying, Adani Enterprises witnessed a contraction of 547 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 2,661 units of Open Interest in the February month futures, Bajaj Finance witnessed an addition of 1,623 units of Open Interest in the February month futures, State Bank of India witnessed an addition of 2,142 units of Open Interest in the February month futures and Adani Ports and Special Economic Zone witnessed an addition of 3,483 units of Open Interest in the February month futures. (Provisional)
