Indian equity benchmark -- Nifty -- ended in negative terrain with over half a percent cut. After making a cautions start, soon index traded in positive terrain, as traders got some support with Comptroller & Auditor General of India (CAG) G C Murmu’s statement that the blue economy occupies a vital position in India's economic growth and it could well be the next multiplier of GDP and well-being, provided sustainability and socio-economic welfare are kept at the centre stage. However, market unable to hold its position and traded below the natural line, as investors were concerned with ICRA Ratings’ stating that India Inc's operating profit margin narrowed by a sharp 2.37% in the December quarter to 16.3% on an annual basis due to high inflation and rising energy costs.
In afternoon session, index extended its losses and slipped near day’s low point, as traders remained pessimistic with a private report stating that a dove-turned-hawk in India’s monetary policy committee said demand in the economy was leading to significant price gains and high interest rates are required to keep a lid over inflation, including the core measure. Besides, another private report stated that a derivative trade that boosted demand for India’s sovereign bonds by billions is at risk from a proposed tax, piling pressure on a market straining under record government borrowings.
Traders were seen piling positions in Media, Realty and Auto, while selling was witnessed in Pharma, Healthcare Index and IT. The top gainers from the F&O segment were Adani Enterprises, Zee Entertainment Enterprises and Escorts Kubota. On the other hand, the top losers were Vedanta, Cipla and Hindalco Industries. 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 increased by 1.04% and reached 14.02. The 50 share Nifty down by 88.75 points or 0.51% to settle at 17,303.95.
Nifty March 2023 futures closed at 17406.05 (LTP) on Tuesday, at a premium of 102.10 points over spot closing of 17303.95, while Nifty April 2023 futures ended at 17508.00 (LTP), at a premium of 204.05 points over spot closing. Nifty March futures saw an addition of 19,567 units, taking the total open interest (Contracts) to 2,41,617 units. The near month derivatives contract will expire on March 29, 2023. (Provisional)
From the most active contracts, Adani Enterprises March 2023 futures traded at a premium of 8.65 points at 1380.00 (LTP) compared with spot closing of 1371.35. The numbers of contracts traded were 1,21,752. (Provisional)
Reliance Industries March 2023 futures traded at a premium of 12.85 points at 2332.80 (LTP) compared with spot closing of 2319.95. The numbers of contracts traded were 38,249. (Provisional)
Adani Ports and Special Economic Zone March 2023 futures traded at a premium of 3.90 points at 594.60 (LTP) compared with spot closing of 590.70. The numbers of contracts traded were 37,468. (Provisional)
Vedanta March 2023 futures traded at a premium of 1.80 points at 269.90 (LTP) compared with spot closing of 268.10. The numbers of contracts traded were 31,461. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 9.00 points at 1612.00 (LTP) compared with spot closing of 1603.00. The numbers of contracts traded were 21,629. (Provisional)
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 8,098 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with a contraction of 2 units open interests. The maximum OI outstanding for Calls was at 18000 SP (57,981 units) and that for Puts was at 17000 SP (89,637 units). The respective Support and Resistance levels of Nifty are: Resistance 17411.20 -- Pivot Point 17333.20 -- Support 17225.95.
The Nifty Put Call Ratio (PCR) finally stood at (1.26) for March month contract. The top five scrips with highest PCR on Honeywell Automation India (1.67), Metropolis Healthcare (1.50), IPCA Laboratories (1.21), Power Grid Corporation of India (0.98) and Ashok Leyland (0.98).
Among most active underlying, Adani Enterprises witnessed an addition of 3,844 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 9,257 units of Open Interest in the March month futures, HDFC Bank witnessed an addition of 45 units of Open Interest in the March month futures, Bank of Baroda witnessed an addition of 5,395 units of Open Interest in the March month futures and Vedanta witnessed an addition of 3,687 units of Open Interest in the March month futures (Provisional)
