Indian equity benchmark -- Nifty -- ended Monday’s trading session in negative terrain ahead of the release of minutes from the U.S. Federal Open Market Committee (FOMC) meeting slated to be released on Wednesday. Market made a cautious start but traded above the neutral line in morning session, as traders took some support with Federation of Indian Export Organisations’ (FIEO) statement that India's exports are expected to grow by 3-5 per cent to $435-445 billion in this fiscal.
However, in afternoon session, market started southward journey and touched day’s low point, as sentiments turned pessimistic with a private report stating that India’s economic activity cooled off at the start of the year as higher borrowing costs tempered demand at home and abroad, signaling more pain ahead as the global economy slows down. Besides, traders took note of a report that the Reserve Bank of India (RBI) has predicted that 2023 would probably be characterised by a milder global slowdown than anticipated earlier, but added that the trajectory remains unpredictable.
Most of the sectoral indices ended in red except Auto and IT. The top gainers from the F&O segment were Coforge, Persistent Systems and Gujarat Gas. On the other hand, the top losers were Adani Enterprises, Cipla and Vodafone Idea. 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 2.27% and reached 13.38. The 50 share Nifty down by 99.60 points or 0.56% to settle at 17,844.60.
Nifty February 2023 futures closed at 17867.00 (LTP) on Monday, at a premium of 22.40 points over spot closing of 17844.60, while Nifty March 2023 futures ended at 17975.50 (LTP), at a premium of 130.90 points over spot closing. Nifty February futures saw an addition of 11,246 units, taking the total open interest (Contracts) to 1 1,94,273 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
From the most active contracts, HDFC Bank February 2023 futures traded at a premium of 2.90 points at 1643.40 (LTP) compared with spot closing of 1640.50. The numbers of contracts traded were 50,270. (Provisional)
Adani Enterprises February 2023 futures traded at a premium of 4.95 points at 1617.95 (LTP) compared with spot closing of 1613.00. The numbers of contracts traded were 39,336. (Provisional)
Kotak Mahindra Bank February 2023 futures traded at a premium of 1.85 points at 1738.85 (LTP) compared with spot closing of 1737.00. The numbers of contracts traded were 38,800. (Provisional)
Reliance Industries February 2023 futures traded at a discount of 2.55 points at 2412.15 (LTP) compared with spot closing of 2414.70. The numbers of contracts traded were 37,143. (Provisional)
Adani Ports and Special Economic Zone February 2023 futures traded at a discount of 1.05 points at 579.00 (LTP) compared with spot closing of 580.05. The numbers of contracts traded were 34,231. (Provisional)
Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 90,855 units open interests. Among Nifty puts, 17800 SP from the February month expiry was the most active put with an addition of 2,813 units open interests. The maximum OI outstanding for Calls was at 18000 SP (3,26,767 units) and that for Puts was at 17500 SP (1,47,207 units). The respective Support and Resistance levels of Nifty are: Resistance 17959.83 -- Pivot Point 17889.11 -- Support -- 17773.88.
The Nifty Put Call Ratio (PCR) finally stood at (0.62) for February month contract. The top five scrips with highest PCR on Voltas (1.36), UltraTech Cement (1.24), LTIMindtree (1.17), Tech Mahindra (1.15) and Apollo Hospitals Enterprise (1.13).
Among most active underlying, HDFC Bank witnessed a contraction of 9,535 units of Open Interest in the February month futures, Kotak Mahindra Bank witnessed a contraction of 6,272 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 3,986 units of Open Interest in the February month futures, State Bank of India witnessed a contraction of 5,397 units of Open Interest in the February month futures and ICICI Bank witnessed an addition of 2,279 units of Open Interest in the February month. (Provisional)
