The fifty stock index -- Nifty -- crashed like house of card on Wednesday, ending the day in negative terrain, ahead of monthly F&O expiry. Market made a negative start and continued its southward journey, as traders were concerned with the State Bank of India (SBI) projecting a GDP growth of 4.6% for the December quarter, citing that as many as 30 high frequency indicators are not as robust as they were in the previous quarters. Beside, traders remained concerned about the outlook for U.S. interest rates amid a sharp increase by U.S. treasury yields.
In afternoon session, index extended its southward journey and touched its day’s low point, as sentiment remained downbeat with a private report stating that the Reserve Bank of India will increase its main interest rate by 25 basis points to 6.75% in April and then pause until the end of 2023. Traders took a note of another private report stating that the Indian rupee's expected volatility against the dollar over the next one month hit its lowest level in almost seven months on Tuesday, February 21, tracking the currency's recent narrow trading range and on expectations of the central bank's continued support. At the end, market closed in negative terrain with over 1.5% losses.
All the sectoral indices ended in red. The top gainers from the F&O segment were Aurobindo Pharma, Voltas and Glenmark Pharmaceuticals. On the other hand, the top losers were Adani Enterprises, Adani Ports and Special Economic Zone and Aditya Birla Fashion and Retail. 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 11.27% and reached 15.59. The 50 share Nifty down by 272.40 points or 1.53% to settle at 17,554.30.
Nifty February 2023 futures closed at 17566.00 (LTP) on Wednesday, at a premium of 11.70 points over spot closing of 17554.30, while Nifty March 2023 futures ended at 17664.00 (LTP), at a premium of 109.70 points over spot closing. Nifty February futures saw an addition of 8,079 units, taking the total open interest (Contracts) to 1,47,093 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 discount of 3.95 points at 1393.55 (LTP) compared with spot closing of 1397.50. The numbers of contracts traded were 46,865. (Provisional)
ICICI Bank February 2023 futures traded at a premium of 1.40 points at 838.85 (LTP) compared with spot closing of 837.45. The numbers of contracts traded were 44,651. (Provisional)
Reliance Industries February 2023 futures traded at a discount of 6.00 points at 2371.00 (LTP) compared with spot closing of 2377.00. The numbers of contracts traded were 43,635. (Provisional)
Infosys February 2023 futures traded at a discount of 2.75 points at 1559.05 (LTP) compared with spot closing of 1561.80. The numbers of contracts traded were 27,254. (Provisional)
HDFC Bank February 2023 futures traded at a discount of 0.15 points at 1614.05 (LTP) compared with spot closing of 1614.20. The numbers of contracts traded were 26,119. (Provisional)
Among, Nifty calls, 17700 SP from the February month expiry was the most active call with an addition of 2,10,617 units open interests. Among Nifty puts, 17500 SP from the February month expiry was the most active put with an addition of 41,283 units open interests. The maximum OI outstanding for Calls was at 18000 SP (3,13,352 units) and that for Puts was at 17500 SP (1,86,990 units). The respective Support and Resistance levels of Nifty are: Resistance 17708.05 -- Pivot Point 17618.75 -- Support 17465.00.
The Nifty Put Call Ratio (PCR) finally stood at (0.55) for February month contract. The top five scrips with highest PCR on Voltas (1.53), LTIMindtree (1.18), Aurobindo Pharma (1.15), Berger Paints India (1.10) and Tech Mahindra (1.10).
Among most active underlying, ICICI Bank witnessed an addition of 8,426 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 6,290 units of Open Interest in the February month futures, HDFC Bank witnessed an addition of 1,583 units of Open Interest in the February month futures and Housing Development Finance Corporation witnessed an addition of 9,304 units of Open Interest in the February month futures (Provisional)
