In a volatile trading session, Nifty ended with minor losses, as traders were cautious ahead of monthly F&O expiry. Besides, investors’ attention turned towards macroeconomic data, both domestic and in the U.S. GDP and jobs data from the world's largest economy is due on March 30, which could provide insight into the impact of U.S. Federal Reserve's monetary policy action on inflation and growth. India VIX was down by 2.23%. Tracking US markets overnight, index made a positive start as fears of a global banking crisis once again eased following the latest developments in the sector. Meanwhile, SBI Research in its latest Ecowrap report stated that the Reserve Bank of India (RBI) is expected to pause their interest rate hike and the current 6.5 per cent repo rate could be the terminal rate for now. However, market failed to keep head above water and traded volatile during the session, as sentiments turned pessimistic after a sharp rise in oil prices overnight. Traders ignored U.S. regulators’ statement that they would backstop a deal for regional lender First Citizens BancShares to acquire failed Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. Traders remained worried as the U.S. Senate Banking Committee due to hold a hearing on the recent banking sector turmoil later in the day.
Most of the sectorial indices ended in red. The top gainers from the F&O segment were Torrent Power, Manappuram Finance and Cholamandalam Investment and Fin Co. On the other hand, the top losers were Adani Ports, Bandhan Bank and Adani Enterprises. In the index option segment, maximum OI continues to be seen in the 16900 -17100 calls and 16700 -16950 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.23% and reached 15.10. The 50 share Nifty down by 34.00 points or 0.20% to settle at 16,951.70.
Nifty March 2023 futures closed at 16977.70 (LTP) on Tuesday, at a premium of 26.00 points over spot closing of 16951.70, while Nifty April 2023 futures ended at 17084.70 (LTP), at a premium of 133.00 points over spot closing. Nifty March futures saw an addition of 12,913 units, taking the total outstanding open interest (Contracts) to 2,02,758 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 0.70 points at 2247.75 (LTP) compared with spot closing of 2247.05. The numbers of contracts traded were 48,609. (Provisional)
HDFC Bank March 2023 futures traded at a discount of 3.05 points at 1578.55 (LTP) compared with spot closing of 1581.60. The numbers of contracts traded were 40,341. (Provisional)
Adani Enterprises March 2023 futures traded at a discount of 0.50 points at 1602.45 (LTP) compared with spot closing of 1602.95. The numbers of contracts traded were 35,554. (Provisional)
ICICI Bank March 2023 futures traded at a discount of 0.20 points at 856.70 (LTP) compared with spot closing of 856.90. The numbers of contracts traded were 35,346. (Provisional)
Infosys March 2023 futures traded at a premium of 2.90 points at 1381.50 (LTP) compared with spot closing of 1378.60. The numbers of contracts traded were 26,469. (Provisional)
Among, Nifty calls, 17000 SP from the March month expiry was the most active call with an addition of 80,698 units open interests. Among Nifty puts, 16900 SP from the March month expiry was the most active put with an addition of 26,976 units open interests. The maximum OI outstanding for Calls was at 17000 SP (2,89,081 units) and that for Puts was at 16800 SP (1,49,823 units). The respective Support and Resistance levels of Nifty are: Resistance 17,037.72 -- Pivot Point 16,975.73 -- Support -- 16,889.72.
The Nifty Put Call Ratio (PCR) finally stood at (0.68) for March month contract. The top five scrips with highest PCR on Multi Commodity Exchange of India (1.22), ICICI Prudential Life Insurance Company (1.18), Titan Company (1.14), UltraTech Cement (1.07) and Aurobindo Pharma (1.06).
Among most active underlying, HDFC Bank witnessed a contraction of 2,833 units of Open Interest in the March month futures, Reliance Industries witnessed an addition of 4,918 units of Open Interest in the March month futures, ICICI Bank witnessed an addition of 6,292 units of Open Interest in the March month futures and Kotak Mahindra Bank witnessed a contraction of 749 units of Open Interest in the March month futures. (Provisional)
