Indian equity benchmark -- Nifty -- closed in negative terrain on Tuesday, as traders were worried about U.S. inflation data to be out tonight. After making a cautious start, index traded higher in early morning session, as investors took encouragement with Commerce and Industry Minister Piyush Goyal’s statement that the country's goods and services exports are marching ahead to cross $750 billion in the current financial year and talks for expanding rupee trade with certain countries are at an advanced stage. However, soon market slipped into negative terrain, as traders got cautious with report that India’s CPI inflation in February remained above RBI’s tolerance range indicating more rate hikes in future. India's consumer price inflation (CPI)-based inflation eased marginally to 6.44 per cent in February, compared to 6.52 per cent in January.
In afternoon session, index trimmed most of its losses, as market participant got some relief with the latest FICCI Manufacturing Survey report stating that with growth expected to continue for the Indian manufacturing sector in Jan-March 2022-23, there are signs that cost pressure witnessed in the last many months seems to be softening a bit for the sector. But, index unable to hold recovery and ended in negative terrain with over half a percent cut, as investors continued to grapple with the fallout of bank failures in the US. Silicon Valley Bank and Signature Bank have collapsed, sparking concerns of a financial contagion amid central banks hiking rates to tame inflation.
Most of the sectorial indices in red except Media and Pharma. The top gainers from the F&O segment were PVR, Zee Entertainment Enterprises and Trent. On the other hand, the top losers were Astral, Adani Enterprises and Bandhan 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 0.01% and reached 16.22. The 50 share Nifty down by 111.00 points or 0.65% to settle at 17,043.30.
Nifty March 2023 futures closed at 17140.00 (LTP) on Tuesday, at a premium of 96.70 points over spot closing of 17043.30, while Nifty April 2023 futures ended at 17242.05 (LTP), at a premium of 198.75 points over spot closing. Nifty March futures saw an addition of 24,930 units, taking the total open interest (Contracts) to 2,57,396 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 4.95 points at 1734.95 (LTP) compared with spot closing of 1730.00. The numbers of contracts traded were 46,773. (Provisional)
Reliance Industries March 2023 futures traded at a premium of 11.95 points at 2290.95 (LTP) compared with spot closing of 2279.00. The numbers of contracts traded were 31,343. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 4.30 points at 836.80 (LTP) compared with spot closing of 832.50. The numbers of contracts traded were 30,508. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 9.10 points at 1577.10 (LTP) compared with spot closing of 1568.00. The numbers of contracts traded were 29,802. (Provisional)
Kotak Mahindra Bank March 2023 futures traded at a premium of 8.30 points at 1656.05 (LTP) compared with spot closing of 1647.75. The numbers of contracts traded were 27,255. (Provisional)
Among, Nifty calls, 17200 SP from the March month expiry was the most active call with an addition of 14,258 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 4,776 units open interests. The maximum OI outstanding for Calls was at 18000 SP (68,534 units) and that for Puts was at 17000 SP (1,09,529 units). The respective Support and Resistance levels of Nifty are: Resistance 17182.93 -- Pivot Point 17085.02 -- Support -- 16945.38.
The Nifty Put Call Ratio (PCR) finally stood at (1.10) for March month contract. The top five scrips with highest PCR on Bajaj Auto (0.85), Hindustan Petroleum Corporation (0.84), Bank of Baroda (0.84), Jindal Steel and Power (0.81) and Coal India (0.79).
Among most active underlying, HDFC Bank witnessed an addition of 3,029 units of Open Interest in the March month futures, Adani Enterprises witnessed an addition of 2,371 units of Open Interest in the March month futures, Kotak Mahindra Bank witnessed an addition of 6,060 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 3,491 units of Open Interest in the March month futures and ICICI Bank witnessed an addition of 3,529 units of Open Interest in the March month futures. (Provisional)
