Indian equity benchmark -- Nifty -- ended in positive terrain with over half a percent gains, as traders went for value buying. Market made an optimistic start, as investors took some support with Chief Economic Advisor V Anantha Nageswaran’s statement that high frequency data indicate buoyant economic growth momentum and the 7% GDP growth estimate for the current fiscal is very realistic. He also said that there are enough signs that manufacturing is in good health. Traders overlooked a private survey report showing that India's manufacturing sector expanded at the slowest pace in four months in February amid rising borrowing costs & weakness in the sector.
In afternoon session, index continued its northward journey, as Moody's Investors Service raised India's economic growth estimate for 2023 to 5.5 per cent from 4.8 per cent pegged earlier, on the back of a sharp increase in capital expenditure in the Budget and a resilient economic momentum. In the last leg of hours, index touched intraday high point and finally ended on higher note, as sentiment remained upbeat with the Reserve Bank of India’s (RBI) data showing that robust offtake from retail and non-banking financial companies (NBFCs) increased credit to services by 21.5 per cent year-on-year (YoY) in January 2023 as against 5.7 per cent a year ago.
All the sectorial indices ended in green. The top gainers from the F&O segment were Adani Enterprises, Rain Industries and Hindustan Copper. On the other hand, the top losers were TVS Motor Company, Britannia Industries and Alkem Laboratories. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16950 -17150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 7.31% and reached 13.00. The 50 share Nifty up by 146.95 points or 0.85% to settle at 17,450.90.
Nifty March 2023 futures closed at 17538.95 (LTP) on Wednesday, at a premium of 88.05 points over spot closing of 17450.90, while Nifty April 2023 futures ended at 17638.50 (LTP), at a premium of 187.60 points over spot closing. Nifty March futures saw an addition of 2,963 units, taking the total open interest (Contracts) to 2,37,986 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 4.55 points at 1583.55 (LTP) compared with spot closing of 1579.00. The numbers of contracts traded were 77,898. (Provisional)
Reliance Industries March 2023 futures traded at a premium of 8.65 points at 2354.05 (LTP) compared with spot closing of 2345.40. The numbers of contracts traded were 25,929. (Provisional)
Adani Ports and Special Economic Zone March 2023 futures traded at a premium of 3.30 points at 605.00 (LTP) compared with spot closing of 601.70. The numbers of contracts traded were 25,081. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 11.50 points at 1610.50 (LTP) compared with spot closing of 1599.00. The numbers of contracts traded were 21,082. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 4.90 points at 861.00 (LTP) compared with spot closing of 856.10. The numbers of contracts traded were 20,778. (Provisional)
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 8,565 units open interests. Among Nifty puts, 17400 SP from the March month expiry was the most active put with an addition of 6,224 units open interests. The maximum OI outstanding for Calls was at 18000 SP (60,284 units) and that for Puts was at 17000 SP (90,903 units). The respective Support and Resistance levels of Nifty are: Resistance 17497.35 -- Pivot Point 17421.30 -- Support -- 17374.85.
The Nifty Put Call Ratio (PCR) finally stood at (1.26) for March month contract. The top five scrips with highest PCR on Metropolis Healthcare (1.34), Max Financial Services (1.23), Honeywell Automation India (1.12), ICICI Prudential Life Insurance Company (0.99) and Multi Commodity Exchange Of India (0.97).
Among most active underlying, Adani Enterprises witnessed a contraction of 81 units of Open Interest in the March month futures, HDFC Bank witnessed an addition of 3,616 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 3,540 units of Open Interest in the March month futures, State Bank of India witnessed a contraction of 1,184 units of Open Interest in the March month futures and Axis Bank witnessed an addition of 1,273 units of Open Interest in the March month futures. (Provisional)
