Indian equity benchmark -- Nifty -- closed Tuesday’s trading session on a higher note. Index made an optimistic start, as sentiments were upbeat with Minister of State for Finance Bhagwat K Karad stating that the government has taken various reforms following which asset quality of public sector banks has improved significantly with gross NPA ratio declining from the peak of 14.6 per cent in March 2018 to 5.53 per cent in December 2022. Some support also came as the Finance Ministry in its Monthly Economic Review stated that Indian economy is likely to grow at 7 per cent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January. In afternoon session, index continued its northward journey, as traders got support after the retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1485948 new jobs in the month of January 2023 as against revised figure of 1280613 in December 2022. Finally, index ended near day’s high point with 0.70% gains.
Traders were seen piling positions in PSU Bank, Financial Services and Consumer Durables, while selling was witnessed in IT, FMCG and Healthcare Indices. The top gainers from the F&O segment were HDFC Asset Management Company, Crompton Greaves Consumer Electricls and IndiaMART InterMESH. On the other hand, the top losers were GAIL (India), GMR Airports Infrastructure and L&T Technology Services. 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 5.77% and reached 15.08. The 50 share Nifty up by 119.10 points or 0.70% to settle at 17,107.50.
Nifty March 2023 futures closed at 17165.00 (LTP) on Tuesday, at a premium of 57.50 points over spot closing of 17107.50, while Nifty April 2023 futures ended at 17258.45 (LTP), at a premium of 150.95 points over spot closing. Nifty March futures saw an addition 7,159 units, taking the total open interest (Contracts) to 2,52,367 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 5.55 points at 2277.55 (LTP) compared with spot closing of 2272.00. The numbers of contracts traded were 54,373. (Provisional)
ICICI Bank March 2023 futures traded at a premium of 3.00 points at 854.75 (LTP) compared with spot closing of 851.75. The numbers of contracts traded were 23,535. (Provisional)
Kotak Mahindra Bank March 2023 futures traded at a premium of 1.00 points at 1711.00 (LTP) compared with spot closing of 1710.00. The numbers of contracts traded were 21,959. (Provisional)
HDFC Bank March 2023 futures traded at a premium of 7.40 points at 1584.70 (LTP) compared with spot closing of 1577.30. The numbers of contracts traded were 20,833. (Provisional)
State Bank of India March 2023 futures traded at a premium of 2.50 points at 524.25 (LTP) compared with spot closing of 521.75. The numbers of contracts traded were 20,276. (Provisional)
Among, Nifty calls, 17200 SP from the March month expiry was the most active call with a contraction of 1,832 units open interests. Among Nifty puts, 17000 SP from the March month expiry was the most active put with an addition of 15,398 units open interests. The maximum OI outstanding for Calls was at 18000 SP (73,952 units) and that for Puts was at 17000 SP (1,18,607 units). The respective Support and Resistance levels of Nifty are: Resistance 17151.46 -- Pivot Point 17083.73 -- Support -- 17039.76.
The Nifty Put Call Ratio (PCR) finally stood at (0.99) for March month contract. The top five scrips with highest PCR on Titan Company (1.33), Bajaj Auto (1.26), Bharat Petroleum Corporation (0.98), Hindustan Petroleum Corporation (0.93) and Kotak Mahindra Bank (0.93).
Among most active underlying, Reliance Industries witnessed a contraction of 4,286 units of Open Interest in the March month futures, HDFC Bank witnessed an addition of 768 units of Open Interest in the March month futures, State Bank of India witnessed an addition of 3,520 units of Open Interest in the March month futures and Kotak Mahindra Bank witnessed a contraction of 6,964 units of Open Interest in the March month futures.
