S&P CNX Nifty exhibited a smart pull back in Tuesday’s trade, ending with gains of above half a percent, buoyed by strong global cues. Besides, buying in IT and Banking sectors stocks also helped the market to end higher. Traders created fresh long positions during the session ahead of the release of the closely watched report on US consumer price inflation later in the day. India VIX was down by 1.66%. Tracing Wall Street overnight, index made a positive start as investors assessed the outlook for inflation and economic growth. Traders ignored report that India's retail inflation breached the RBI's comfort zone and rose to a three-month high of 6.52 per cent in January 2023, mainly on account of a spike in food prices.
Market traded with strength in afternoon session, as traders got encouragement after India’s inflation based on wholesale price index (WPI) eased further to 4.73% for the month of January 2023 against 4.95% recorded in December 2022. Decline in the rate of inflation in January is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products. The wholesale inflation was 5.85% in November 2022. Index continued its upward rally till the end of the trading session.
Most of the sectoral indices ended in green except Auto, Media and Pharma. The top gainers from the F&O segment were UPL, ITC and City Union Bank. On the other hand, the top losers were Indiabulls Housing Finance, Honeywell Automation and Navin Fluorine International. 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 1.66% and reached 13.45. The 50 share Nifty up by 158.95 points or 0.89% to settle at 17,929.85.
Nifty February 2023 futures closed at 17943.60 (LTP) on Tuesday, at a premium of 13.75 points over spot closing of 17929.85, while Nifty March 2023 futures ended at 18042.05 (LTP), at a premium of 112.20 points over spot closing. Nifty February futures saw a contraction of 9,149 units, taking the total open interest (OI) to 2,04,783 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 4.50 points at 1754.50 (LTP) compared with spot closing of 1750.00. The numbers of contracts traded were 61,294. (Provisional)
Reliance Industries February 2023 futures traded at a premium of 0.10 points at 2380.10 (LTP) compared with spot closing of 2380.00. The numbers of contracts traded were 41,263. (Provisional)
Adani Ports February 2023 futures traded at a premium of 1.70 points at 565.70 (LTP) compared with spot closing of 564.00. The numbers of contracts traded were 25,975. (Provisional)
ITC February 2023 futures traded at a discount of 4.85 points at 381.10 (LTP) compared with spot closing of 385.95. The numbers of contracts traded were 24,409. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 0.60 points at 865.60 (LTP) compared with spot closing of 865.00. The numbers of contracts traded were 22,630. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with a contraction of 5,102 units open interests. Among Nifty puts, 17900 SP from the February month expiry was the most active put with an addition of 14,186 units open interests. The maximum OI outstanding for Calls was at 18000 SP (80,439 units) and that for Puts was at 17500 SP (86,175 units). The respective Support and Resistance levels of Nifty are: Resistance 17,989.58 -- Pivot Point 17,894.82 -- Support -- 17,835.08.
The Nifty Put Call Ratio (PCR) finally stood at (1.17) for February month contract. The top five scrips with highest PCR on Voltas (1.24), Zydus Lifesciences (1.19), Grasim Industries (1.09), Aurobindo Pharma (1.07) and IPCA Laboratories (1.03).
Among most active underlying, Adani Enterprises witnessed an addition of 1,447 units of Open Interest in the February month futures, Reliance Industries witnessed a contraction of 1,020 units of Open Interest in the February month futures, HDFC Bank witnessed an addition of 2,224 units of Open Interest in the February month futures, ITC witnessed an addition of 6,559 units of Open Interest in the February month futures and SBIN witnessed an addition of 358 units of Open Interest in the February month futures. (Provisional)
