Indian equity benchmark Nifty showed drastic fall on Monday amid Silicon Valley Bank crisis. Market ended the first day of trading week with cut of over a percent. Traders were cautious ahead of India’s Consumer Price Index (CPI) data, India WPI Manufacturing data and United States Inflation Rate. Banking counter dragged the market lower for the day. Initially, index made slightly positive start and further added gains as trades got some support with report that India's industrial production growth perked up slightly to 5.2 per cent in January 2023 from 4.7 per cent in December 2022 in line with good performance of the power, mining and manufacturing sectors. There was an improvement on an annual as well as sequential basis. However, market wiped out all of its gains and turned negative as traders got concerned with a private report that India’s retail inflation probably breached the central bank’s target for a second straight month in February, prompting the monetary authority to possibly hike borrowing costs to the highest level in seven years. In late afternoon session, market touched its day’s lowest point and finally ended lower.
All the sectorial indices in red. The top gainers from the F&O segment were Tech Mahindra, United Spirits and Apollo Hospitals Enterprise. On the other hand, the top losers were RBL Bank, Piramal Enterprises and Indusind Bank. 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 increased by 20.89% and reached 16.22. The 50 share Nifty down by 258.60 points or 1.49% to settle at 17,154.30.
Nifty March 2023 futures closed at 17220.00 (LTP) on Monday, at a premium of 65.70 points over spot closing of 17154.30, while Nifty April 2023 futures ended at 17325.00 (LTP), at a premium of 170.70 points over spot closing. Nifty March futures saw an addition of 12,693 units, taking the total open interest (Contracts) to 2,43,697 units. The near month derivatives contract will expire on March 29, 2023. (Provisional)
From the most active contracts, Indusind Bank March 2023 futures traded at a premium of 2.45 points at 1063.30 (LTP) compared with spot closing of 1060.85. The numbers of contracts traded were 44,319. (Provisional)
Reliance Industries March 2023 futures traded at a premium of 4.00 points at 2292.00 (LTP) compared with spot closing of 2288.00. The numbers of contracts traded were 36,102. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 3.10 points at 833.10 (LTP) compared with spot closing of 830.00. The numbers of contracts traded were 32,931. (Provisional)
Tech Mahindra March 2023 futures traded at a premium of 5.90 points at 1139.90 (LTP) compared with spot closing of 1134.00. The numbers of contracts traded were 32,308. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 6.50 points at 1578.00 (LTP) compared with spot closing of 1571.50. The numbers of contracts traded were 29,702. (Provisional)
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 11,816 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 6,290 units open interests. The maximum OI outstanding for Calls was at 18000 SP (66,455 units) and that for Puts was at 17000 SP (1,17,882 units). The respective Support and Resistance levels of Nifty are: Resistance 17,418.32 -- Pivot Point 17,265.88 -- Support -- 17,001.87.
The Nifty Put Call Ratio (PCR) finally stood at (1.19) for March month contract. The top five scrips with highest PCR on Balrampur Chini Mills (0.97), Hindustan Petroleum Corporation (0.87), Bank of Baroda (0.87), Bajaj Auto (0.86) and Jindal Steel and Power (0.81).
Among most active underlying, HDFC Bank witnessed an addition of 2,359 units of Open Interest in the March month futures, Tech Mahindra witnessed an addition of 3,930 units of Open Interest in the March month futures, Indusind Bank witnessed an addition of 14,506 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 1,212 units of Open Interest in the March month futures and ICICI Bank witnessed an addition of 4,325 units of Open Interest in the March month futures. (Provisional)
