Nifty ends in positive terrain; settles near 17900 mark

Indian equity benchmark -- Nifty -- ended in positive terrain for the second consecutive day on Thursday. After making a slightly positive start, market soon slipped into negative terrain, as investors got cautious with private report stating that the Reserve Bank of India is likely to raise interest rates once again in April as inflation pressures persist and the Federal Reserve continues to tighten, a day after the central bank delivered what many had expected to be its last hike in the current cycle. However, market trimmed most of its losses and traded near neutral line, as traders took some support with B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs) stating that the government has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances.

In afternoon session, market again added losses, as traders remained cautious with a private report stating that amid a deepening funding winter, only 53 per cent of startup founders had a positive fundraising experience (71 per cent of those who attempted to raise) in 2022, down from 92 per cent in 2021. Founders expect this year to be challenging, with 58 per cent of founders expecting a tough fundraising environment. However, in last leg of hours, market removed all of its losses and ended with minor gains as traders went for value buying.

Most of the sectoral indices ended in red except IT, Media, Financial Services, Private Bank and Bank. The top gainers from the F&O segment were Trent, Cummins India and Jubilant FoodWorks. On the other hand, the top losers were Adani Enterprises, Ambuja Cements and Shree Cement. 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 4.08% and reached 13.04. The 50 share Nifty up by 21.75 points or 0.12% to settle at 17,893.45.

Nifty February 2023 futures closed at 17959.10 (LTP) on Thursday, at a premium of 65.65 points over spot closing of 17893.45, while Nifty March 2023 futures ended at 18060.00 (LTP), at a premium of 166.55 points over spot closing.  Nifty February futures saw an addition of 1,272 units, taking the total open interest (Contracts) to 2,03,191 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 5.00 points at 1927.00 (LTP) compared with spot closing of 1922.00. The numbers of contracts traded were 76,423. (Provisional)
 
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 2.65 points at 584.30 (LTP) compared with spot closing of 581.65. The numbers of contracts traded were 31,950. (Provisional)
 
Reliance Industries February 2023 futures traded at a premium of 10.85 points at 2364.45 (LTP) compared with spot closing of 2353.60. The numbers of contracts traded were 29,487. (Provisional)
 
HDFC Bank February 2023 futures traded at a premium of 7.80 points at 1658.00 (LTP) compared with spot closing of 1650.20. The numbers of contracts traded were 19,924. (Provisional)
 
Bajaj Finance February 2023 futures traded at a premium of 6.10 points at 6468.10 (LTP) compared with spot closing of 6462.00. The numbers of contracts traded were 17,620. (Provisional)

Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 1,234 units open interests. Among Nifty puts, 17800 SP from the February month expiry was the most active put with an addition of 2,234 units open interests. The maximum OI outstanding for Calls was at 18000 SP (67,405 units) and that for Puts was at 17500 SP (73,886 units). The respective Support and Resistance levels of Nifty are: Resistance 17946.96 -- Pivot Point 17863.38 -- Support -- 17809.86.

The Nifty Put Call Ratio (PCR) finally stood at (1.21) for February month contract. The top five scrips with highest PCR on Voltas (1.43), Zydus Lifesciences (1.36), Mahindra & Mahindra Financial Services (1.24), Bajaj Finance (1.11) and Tata Consultancy Services (0.97).

Among most active underlying, Adani Enterprises witnessed an addition of 4,543 units of Open Interest in the February month futures, HDFC Bank witnessed a contraction of 3,313 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 1,287 units of Open Interest in the February month futures, Bajaj Finance witnessed an addition of 3,480 units of Open Interest in the February month futures and State Bank of India witnessed an addition of 1,453 units of Open Interest in the February month futures. (Provisional)