Indian equity benchmark -- Nifty -- finished volatile session in negative terrain. After making a slightly positive start, soon market slipped into red terrain, as investors got concerned after Department for Promotion of Industry and Internal Trade in its latest data has showed that foreign direct investment (FDI) into India declined by 15 per cent to $36.75 billion during the April-December period of this fiscal year 2022-23 (FY23), as compared to the FDI inflows of $43.17 billion during the corresponding period of the previous year. However, market made a recovery in early morning session, as traders got some encouragement with a report that ahead of the meeting of G20 finance ministers and central bank governors in Bengaluru, the International Monetary Fund (IMF) reiterated that India's strong performance remains a bright spot in an uncertain global economy.
Market remained volatile during the day, altering between red and green terrain, as market participants got worried after notes from a Federal Reserve meeting showed officials expect to keep US interest rates high to fight stubborn inflation. In last leg of trade, market added some losses and ended in negative terrain. Traders remained cautious, as according to the minutes of the meeting, majority of members of the high-powered Monetary Policy Committee (MPC) of the Reserve Bank were concerned about heightened inflation even as two panellists raised objections against an increase in the benchmark interest rate.
Most of the sectoral indices ended in red except PSU Bank, Metal, FMCG, Private Bank and Bank. The top gainers from the F&O segment were Indus Towers, Indian Hotels Company and GAIL (India). On the other hand, the top losers were Indiabulls Housing Finance, Vodafone Idea and Zee Entertainment Enterprises. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16900 -17100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.28% and reached 15.08. The 50 share Nifty down by 43.05 points or 0.25% to settle at 17,511.25.
Nifty March 2023 futures closed at 17628.90 (LTP) on Thursday, at a premium of 117.65 points over spot closing of 17511.25, while Nifty April 2023 futures ended at 17734.00 (LTP), at a premium of 222.75 points over spot closing. Nifty March futures saw an addition of 84,617 units, taking the total open interest (Contracts) to 2,18,122 units. The near month derivatives contract will expire on March 29, 2023. (Provisional)
From the most active contracts, Reliance Industries March 2023 futures traded at a premium of 15.50 points at 2382.00 (LTP) compared with spot closing of 2366.50. The numbers of contracts traded were 70,171. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 5.95 points at 846.65 (LTP) compared with spot closing of 840.70. The numbers of contracts traded were 51,268. (Provisional)
Adani Enterprises March 2023 futures traded at a premium of 5.20 points at 1394.05 (LTP) compared with spot closing of 1388.85. The numbers of contracts traded were 41,620. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 11.75 points at 1615.75 (LTP) compared with spot closing of 1604.00. The numbers of contracts traded were 38,947. (Provisional)
State Bank of India March 2023 futures traded at a premium of 2.05 points at 524.90 (LTP) compared with spot closing of 522.85. The numbers of contracts traded were 35,257. (Provisional)
Among, Nifty calls, 18000 SP from the March month expiry was the most active call with an addition of 8,517 units open interests. Among Nifty puts, 17500 SP from the March month expiry was the most active put with an addition of 9,391 units open interests. The maximum OI outstanding for Calls was at 18000 SP (45,458 units) and that for Puts was at 17000 SP (87,278 units). The respective Support and Resistance levels of Nifty are: Resistance 17602.40 -- Pivot Point 17528.90 -- Support 17437.75.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for March month contract. The top five scrips with highest PCR on Torrent Pharmaceuticals (22.00), Metropolis Healthcare (2.27), IPCA Laboratories (1.82), J K Cement (1.42) and Balrampur Chini Mills (1.25).
Among most active underlying, Reliance Industries witnessed an addition of 38,854 units of Open Interest in the March month futures, HDFC Bank witnessed an addition of 16,580 units of Open Interest in the March month futures, ICICI Bank witnessed an addition of 27,065 units of Open Interest in the March month futures and State Bank of India witnessed an addition of 17,116 units of Open Interest in the March month futures. (Provisional)
