Nifty snapped three-day winning streak on last trading day of the week and closed the day’s trade with cut of over half a percent, as traders have expressed concerns over Federal Reserve will raise rates higher than currently anticipated in an effort to combat inflation. Most of Sectoral indices spent the day in red. India VIX was up by 1.51%. After making negative start, market remained in red as investors maintained risk-averse approach ahead of Fed interest rate hike. Unexpectedly strong inflation data and a drop in weekly jobless claims added to fears that the U.S. Federal Reserve will keep raising interest rates to tame high prices.
In afternoon session, index added more losses, as investors worried about hawkish comments from Federal Reserve Bank of Cleveland President Loretta Mester about the last rate hike and what future changes are needed. Traders overlooked economic think tank Global Trade Research Initiative’s report where it said that India’s merchandise exports have recorded a healthy growth in both value and volume terms in 2022. The outbound shipments rose by 14.6 per cent year-on-year to $453.3 billion in 2022. Market continued to sag under weakness till end and ended session below 18000 mark.
Most of the sectoral indices ended in red except Oil & Gas. The top gainers from the F&O segment were J K Cement, Shree Cement and Larsen & Toubro. On the other hand, the top losers were Vodafone Idea, Adani Enterprises and Biocon. 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 1.51% and reached 13.09. The 50 share Nifty down by 91.65 points or 0.51% to settle at 17,944.20.
Nifty February 2023 futures closed at 17954.10 (LTP) on Friday, at a premium of 9.90 points over spot closing of 17944.20, while Nifty March 2023 futures ended at 18060.00 (LTP), at a premium of 115.80 points over spot closing. Nifty February futures saw an addition of 8,740 units, taking the total outstanding open interest (OI) to 1,92,997 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, Reliance Industries February 2023 futures traded at a discount of 0.60 points at 2437.40 (LTP) compared with spot closing of 2438.00. The numbers of contracts traded were 37,269. (Provisional)
HDFC Bank February 2023 futures traded at a premium of 2.50 points at 1658.50 (LTP) compared with spot closing of 1656.00. The numbers of contracts traded were 28,854. (Provisional)
Adani Enterprises February 2023 futures traded at a premium of 0.95 points at 1719.95 (LTP) compared with spot closing of 1719.00. The numbers of contracts traded were 28,328. (Provisional)
Adani Ports February 2023 futures traded at a premium of 0.20 points at 577.75 (LTP) compared with spot closing of 577.55. The numbers of contracts traded were 28,195. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 0.70 points at 862.70 (LTP) compared with spot closing of 862.00. The numbers of contracts traded were 25,701. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 1,35,549 units open interests. Among Nifty puts, 17900 SP from the February month expiry was the most active put with an addition of 55,112 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,45,922 units) and that for Puts was at 17500 SP (1,29,380 units). The respective Support and Resistance levels of Nifty are: Resistance 18,024.10 -- Pivot Point 17,954.35 -- Support -- 17,874.45.
The Nifty Put Call Ratio (PCR) finally stood at (0.75) for February month contract. The top five scrips with highest PCR on Shree Cement (1.55), Apollo Hospitals (1.24), LTIMindtree (1.21), Voltas (1.13) and Tech Mahindra (1.11).
Among most active underlying, HDFC Bank witnessed a contraction of 1,877 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 4,799 units of Open Interest in the February month futures, SBIN witnessed an addition of 1,499 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 4,938 units of Open Interest in the February month futures and Kotak Mahindra Bank witnessed an addition of 2,064 units of Open Interest in the February month. (Provisional)
