Sustain buying emerged in last leg of trade helped S&P CNX Nifty to extend northward journey for second day. India VIX was down by 4.40% on Wednesday. Index traded with volatility for the most part of the day, as investors preferred to play safe after U.S. inflation edged down less than expected, fueling concern the Federal Reserve might think more interest rate hikes are needed. Barring FMCG and Pharma stocks, all sectoral indices ended in green. Market made a negative start of the day, as traders were concerned with rising inflation domestically as well as globally and their impact on the interest rate hikes.
Soon, market turned volatile, as sentiment got hit after the data shared by the ministry of finance shows that the outstanding liabilities of 28 states are projected to rise 43 percent in the three years from March 2020 to March 2023. In all, the outstanding liabilities of all these states are forecasted to reach Rs 75 lakh crore by the end of the current financial year, up from Rs 52 lakh crore in March 2020 when the Covid-19 pandemic had forced a nationwide lockdown in India. However, in the last leg of trade, index wiped out its losses and gained traction to end near day’s high point, as investor went for value buying.
Most of the sectoral indices ended in green except FMCG and Pharma. The top gainers from the F&O segment were Torrent Power, Tech Mahindra and Indiabulls Housing Finance. On the other hand, the top losers were Indigo, Multi Commodity Exchange of India and Bharat Forge. In the index option segment, maximum OI continues to be seen in the 18100 -18250 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 4.40% and reached 12.86. The 50 share Nifty up by 86.00 points or 0.48% to settle at 18,015.85.
Nifty February 2023 futures closed at 18040.00 (LTP) on Wednesday, at a premium of 24.15 points over spot closing of 18015.85, while Nifty March 2023 futures ended at 18145.70 (LTP), at a premium of 129.85 points over spot closing. Nifty February futures saw an addition of 2,167 units, taking the total open interest (contracts) to 1,92,457 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, Reliance Industries February 2023 futures traded flat with its spot closing of 2435.05. The numbers of contracts traded were 65,044. (Provisional)
Adani Enterprises February 2023 futures traded at a premium of 1.20 points at 1773.20 (LTP) compared with spot closing of 1772.00. The numbers of contracts traded were 40,700. (Provisional)
HDFC Bank February 2023 futures traded at a premium of 0.70 points at 1670.70 (LTP) compared with spot closing of 1670.00. The numbers of contracts traded were 21,825. (Provisional)
Apollo Hospitals Enterprise February 2023 futures traded at a premium of 6.50 points at 4488.50 (LTP) compared with spot closing of 4482.00. The numbers of contracts traded were 20,950. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 0.80 points at 873.20 (LTP) compared with spot closing of 872.40. The numbers of contracts traded were 19,943. (Provisional)
Among, Nifty calls, 18200 SP from the February month expiry was the most active call with an addition of 7,867 units open interests. Among Nifty puts, 17900 SP from the February month expiry was the most active put with an addition of 24,761 units open interests. The maximum OI outstanding for Calls was at 18200 SP (57,346 units) and that for Puts was at 17500 SP (87,931 units). The respective Support and Resistance levels of Nifty are: Resistance 18,082.03 -- Pivot Point 17,967.92 -- Support -- 17,901.73.
The Nifty Put Call Ratio (PCR) finally stood at (1.26) for February month contract. The top five scrips with highest PCR on Shree Cement (1.25), Voltas (1.19), Apollo Hospitals (1.19), Grasim Industries (1.16) and Zydus Lifesciences (1.16).
Among most active underlying, Reliance Industries witnessed a contraction of 557 units of Open Interest in the February month futures, HDFC Bank witnessed a contraction of 1,803 units of Open Interest in the February month futures, Adani Enterprises witnessed a contraction of 2,202 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 2,270 units of Open Interest in the February month futures and Tech Mahindra witnessed an addition of 2,379 units of Open Interest in the February month futures. (Provisional)
