Indian equity benchmark -- Nifty -- ended Tuesday’s trading session on flat note amid volatility, as investors waited for the U.S. Federal Reserve's latest monetary policy meeting minutes due Wednesday. After making a cautious start, soon market extended its gains as sentiments got boost with International Monetary Fund’s (IMF) statement that India and China will contribute more than 50 per cent of the global growth in the upcoming year due to fading supply-chain disruptions and the boom in the service sector. Asia will be a major driver of global growth, with other countries, apart from China and India, contributing another 25 per cent.
However, market unable to hold its gains and turned volatile in afternoon session, as traders got worried with a report stating that the number of insolvency cases increased 25 per cent in the December 2022 quarter, while recovery of debt through the process remained the lowest at 23.45 per cent during the period. At the end, market made a recovery and ended near its neutral line with only marginal losses, as some support came with credit rating agency Acuite Ratings and Research’s statement that India's gross domestic product (GDP) growth estimate for FY23 at 7 per cent.
Most of the sectoral indices ended in red except FMCG, Financial Services and Consumer Durables. The top gainers from the F&O segment were Indian Energy Exchange, NTPC and Siemens. On the other hand, the top losers were Aditya Birla Fashion and Retail, Adani Enterprises and Canara Bank. 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 4.67% and reached 14.01. The 50 share Nifty down by 17.90 points or 0.10% to settle at 17,826.70.
Nifty February 2023 futures closed at 17851.00 (LTP) on Tuesday, at a premium of 24.30 points over spot closing of 17826.70, while Nifty March 2023 futures ended at 17958.00 (LTP), at a premium of 131.30 points over spot closing. Nifty February futures saw an addition of 8,728 units, taking the total open interest (Contracts) to 1,76,766 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 1.35 points at 2433.85 (LTP) compared with spot closing of 2435.20. The numbers of contracts traded were 56,830. (Provisional)
HDFC Bank February 2023 futures traded at a discount of 1.40 points at 1648.55 (LTP) compared with spot closing of 1649.95. The numbers of contracts traded were 39,437. (Provisional)
ICICI Bank February 2023 futures traded at a discount of 0.50 points at 854.35 (LTP) compared with spot closing of 854.85. The numbers of contracts traded were 37,965. (Provisional)
Ambuja Cements February 2023 futures traded at a premium of 0.20 points at 353.20 (LTP) compared with spot closing of 353.00. The numbers of contracts traded were 31,108. (Provisional)
Infosys February 2023 futures traded at a discount of 1.40 points at 1579.60 (LTP) compared with spot closing of 1581.00. The numbers of contracts traded were 28,485. (Provisional)
Among, Nifty calls, 17900 SP from the February month expiry was the most active call with an addition of 6,519units open interests. Among Nifty puts, 17800 SP from the February month expiry was the most active put with an addition of 36,779 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,79,334 units) and that for Puts was at 17500 SP (1,56,554 units). The respective Support and Resistance levels of Nifty are: Resistance 17900.96 -- Pivot Point 17850.63 -- Support 17776.36.
The Nifty Put Call Ratio (PCR) finally stood at (0.69) for February month contract. The top five scrips with highest PCR on Voltas (1.52), LTIMindtree (1.13), Tech Mahindra (1.08), UltraTech Cement (1.04) and Zydus Lifesciences (1.03).
Among most active underlying, HDFC Bank witnessed a contraction of 2,157 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 12,332 units of Open Interest in the February month futures, ICICI Bank witnessed an addition of 6,958 units of Open Interest in the February month futures, Ambuja Cements witnessed a contraction of 612 units of Open Interest in the February month futures and Infosys witnessed an addition of 5,215 units of Open Interest in the February month futures. (Provisional)
