In a volatile session, Indian equity benchmark -- Nifty -- finished on a higher note on Thursday. After making a slightly positive start, market soon slipped into negative terrain, as traders got concerned with the data released by the commerce ministry showing that India's exports dipped in February for the third consecutive month by 8.8 per cent to $33.88 billion against $37.15 billion in the same month last year. Imports also declined by 8.21 per cent to $51.31 billion as against $55.9 billion recorded in the corresponding month last year. The country's trade deficit in February stood at $17.43 billion. However, index cut all of its losses and traded on a higher note in late morning session, as traders found some support with IMF senior representative to India Luis Breuer stating that the RBI was doing the right thing on rate hikes and added that there was need for more. Breuer also said the Budget’s focus on prudence and fiscal consolidation was a good step that will reduce and stabilise public debt, which is quite high in the country compared to other G20 countries.
In the second half of the trading session, index unable to hold its gains and traded volatile, as traders got worried, amid a private report stating that it would be a tough task for the Indian economy to reach the $5-trillion mark a year before the International Monetary Fund (IMF) projection of 2026-27. Adding more worries among market participants, a parliamentary panel has raised concerns over the marginal budgetary increase in one of the key components of Pradhan Mantri Krishi Sinchayee Yojana. It also raised concern over the reduced allocation in the Digital India Land Records Management Programme, saying both the schemes have remarkable impact on the ground. However, index made a recovery in last leg of trade and ended in positive terrain.
Most of the sectorial indices in green except Metal, IT and Private Bank. The top gainers from the F&O segment were Zee Entertainment Enterprises, ICICI Prudential Life Insurance Company and Hindustan Petroleum Corporation. On the other hand, the top losers were Samvardhana Motherson International, Hindalco Industries and Jindal Steel and Power. 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 0.47% and reached 16.22. The 50 share Nifty up by 13.45 points or 0.079 % to settle at 16,985.60.
Nifty March 2023 futures closed at 17070.35 (LTP) on Thursday, at a premium of 84.75 points over spot closing of 16985.60, while Nifty April 2023 futures ended at 17170.00 (LTP), at a premium of 184.40 points over spot closing. Nifty March futures saw an addition 9,886 units, taking the total open interest (Contracts) to 2,57,676 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 11.50 points at 2241.00 (LTP) compared with spot closing of 2229.50. The numbers of contracts traded were 44,839. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 9.65 points at 1561.75 (LTP) compared with spot closing of 1552.10. The numbers of contracts traded were 38,266. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 4.40 points at 829.95 (LTP) compared with spot closing of 825.55. The numbers of contracts traded were 37,715. (Provisional)
Indusind Bank March 2023 futures traded at a premium of 4.90 points at 1025.55 (LTP) compared with spot closing of 1020.65. The numbers of contracts traded were 25,216. (Provisional)
State Bank of India March 2023 futures traded at a premium of 3.00 points at 528.65 (LTP) compared with spot closing of 525.65. The numbers of contracts traded were 23,913. (Provisional)
Among, Nifty calls, 17500 SP from the March month expiry was the most active call with an addition of 746 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 24,698 units open interests. The maximum OI outstanding for Calls was at 18000 SP (69,738 units) and that for Puts was at 17000 SP (1,25,056 units). The respective Support and Resistance levels of Nifty are: Resistance 17081.98 -- Pivot Point 16966.06 -- Support -- 16869.68.
The Nifty Put Call Ratio (PCR) finally stood at (1.09) for March month contract. The top five scrips with highest PCR on Bharat Petroleum Corporation (1.17), Hindustan Petroleum Corporation (1.06), Titan Company (0.99), Bajaj Auto (0.88) and Dabur India (0.85).
Among most active underlying, HDFC Bank witnessed an addition of 7,205 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 4,912 units of Open Interest in the March month futures and ICICI Bank witnessed an addition of 5,659 units of Open Interest in the March month futures.
