Nifty witnesses fall ahead of WPI data

Indian equity benchmark -- Nifty -- ended lower on Monday ahead of the Wholesale Price Index (WPI) data to be released on February 14. After getting a slightly positive start, market soon slipped into negative terrain, as traders got concerned with a report stating that growth in factory output decelerated to a two-month low of 4.3 per cent in December as manufacturing dragged the overall growth in the Index of Industrial Production (IIP) even as mining and electricity production grew at a robust pace. Some cautiousness also came in as RBI data showed India's foreign exchange reserves dropped by $1.494 billion to reach $575.267 billion as of February 3, snapping a three-week rising trend.

In early afternoon session, market traded near day’s low point, as market participants remained pessimistic with a private report stating that foreign investors continue to desert Indian stock markets as they pulled out over Rs 9,600 crore this month so far on costlier valuation of domestic equities compared to other emerging markets. The outflow comes following a net withdrawal of Rs 28,852 crore by Foreign Portfolio Investors (FPIs) in January. Index staged some recovery in the last hour of the trade but ended in red.

Most of the sectoral indices ended in red except FMCG. The top gainers from the F&O segment were Glenmark Pharmaceuticals, National Aluminium Company and Metropolis Healthcare. On the other hand, the top losers were City Union Bank, IDFC and Balkrishna Industries. 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 7.33% and reached 13.68. The 50 share Nifty down by 85.60 points or 0.48% to settle at 17,770.90.

Nifty February 2023 futures closed at 17799.05 on Monday (LTP), at a premium of 28.15 points over spot closing of 17770.90, while Nifty March 2023 futures ended at 17898.45 (LTP), at a premium of 127.55 points over spot closing. Nifty February futures saw an addition of 11,680 units, taking the total open interest (Contracts) to 2,17,230 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 5.90 points at 1711.90 (LTP) compared with spot closing of 1706.00. The numbers of contracts traded were 55,087. (Provisional)
 
Adani Ports and Special Economic Zone February 2023 futures traded flat at 552.50 (LTP) compared with spot closing of 552.50. The numbers of contracts traded were 30,056. (Provisional)
 
Reliance Industries February 2023 futures traded at a premium of 5.10 points at 2329.70 (LTP) compared with spot closing of 2324.60. The numbers of contracts traded were 25,348. (Provisional)
 
Info Edge (India) February 2023 futures traded at a discount of 1.95 points at 3451.05 (LTP) compared with spot closing of 3453.00. The numbers of contracts traded were 24,482. (Provisional)
 
State Bank of India February 2023 futures traded at a premium of 0.25 points at 537.35 (LTP) compared with spot closing of 537.10. The numbers of contracts traded were 20,709. (Provisional)

Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 12,302 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with an addition of 6,890 units open interests. The maximum OI outstanding for Calls was at 18000 SP (85,688 units) and that for Puts was at 17500 SP (84,563 units). The respective Support and Resistance levels of Nifty are: Resistance 17861.15 -- Pivot Point 17790.45 -- Support -- 17700.20.

The Nifty Put Call Ratio (PCR) finally stood at (1.21) for February month contract. The top five scrips with highest PCR on Voltas (1.55), Zydus Lifesciences (1.21), Aurobindo Pharma (1.12), Mahindra & Mahindra Financial Services (1.00) and J K Cement (0.98).

Among most active underlying, Adani Enterprises witnessed an addition of 2,276 units of Open Interest in the February month futures, State Bank of India witnessed an addition of 3,822 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 2,850 units of Open Interest in the February month futures, HDFC Bank witnessed an addition of 132 units of Open Interest in the February month futures and Infosys witnessed an addition of 3,435 units of Open Interest in the February month futures. (Provisional)