Indian equity benchmark -- Nifty -- finished Tuesday’s trading session on a higher note with over half a percent gains. Index made a strong start, as some support came with Union Finance Minister Nirmala Sitharaman’s statement that India's structural reforms approach has ensured that it remains a globally attractive destination for investment and the country is well-positioned in the global economy, allowing it to grow briskly, possibly faster, in the coming years. Some optimism also came as India Ratings said the share of combined capex of states in the GDP may improve marginally to 2.8% in FY24 from 2.5% in FY23.
In afternoon session, index trimmed some of its gains, but soon bounced back, as traders got encouragement with Union Minister Jitendra Singh’s statement that StartUps in India grew 300 times in the last 9 years. There were just around 350 StartUps before 2014, but after rolled out of special StartUp scheme in 2016, there has been a quantum jump in StartUps to more than 90,000 with more than 100 Unicorns. Some support came amid a report stating that mutual funds remained bullish on the Indian equities in 2022-23 and invested Rs 1.82 lakh crore largely due to a strong interest from retail investors and the correction in the market that led to reasonable valuation. Finally, index ended with gains of 98.25 points.
Most of the sectorial indices ended in green except IT, Consumer Durables and Realty. The top gainers from the F&O segment were Navin Fluorine International, Kotak Mahindra Bank and JSW Steel. On the other hand, the top losers were Berger Paints India, Multi Commodity Exchange of India and ABB India. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16900 -17050 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.42% and reached 11.98. The 50 share Nifty up by 98.25 points or 0.56% to settle at 17,722.30.
Nifty April 2023 futures closed at 17787.00 (LTP) on Tuesday, at a premium of 64.70 points over spot closing of 17722.30, while Nifty May 2023 futures ended at 17848.00 (LTP), at a premium of 125.70 points over spot closing. Nifty April futures saw a contraction of 904 units, taking the total open interest (Contracts) to 1,95,330 units. The near month derivatives contract will expire on April 27, 2023. (Provisional)
From the most active contracts, Kotak Mahindra Bank April 2023 futures traded at a premium of 6.85 points at 1847.35 (LTP) compared with spot closing of 1840.50. The numbers of contracts traded were 44,025. (Provisional)
ICICI Bank April 2023 futures traded at a premium of 1.60 points at 884.50 (LTP) compared with spot closing of 882.90. The numbers of contracts traded were 31,742. (Provisional)
Infosys April 2023 futures traded at a premium of 6.20 points at 1408.50 (LTP) compared with spot closing of 1402.30. The numbers of contracts traded were 31,349. (Provisional)
HDFC Bank April 2023 futures traded at a premium of 8.45 points at 1673.40 (LTP) compared with spot closing of 1664.95. The numbers of contracts traded were 25,150. (Provisional)
Tata Consultancy Services April 2023 futures traded at a premium of 5.00 points at 3210.00 (LTP) compared with spot closing of 3205.00. The numbers of contracts traded were 21,426. (Provisional)
Among, Nifty calls, 18000 SP from the April month expiry was the most active call with a contraction of 3,968 units open interests. Among Nifty puts, 17700 SP from the April month expiry was the most active put with an addition of 15,926 units open interests. The maximum OI outstanding for Calls was at 18000 SP (70,338 units) and that for Puts was at 17000 SP (1,22,137 units). The respective Support and Resistance levels of Nifty are: Resistance 17762.32 -- Pivot Point 17708.73 -- Support 17668.72.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for April month contract. The top five scrips with highest PCR on Siemens (1.24), Bajaj Auto (1.13), Cholamandalam Investment and Finance Company (1.13), Indian Energy Exchange (1.01) and DLF (1.00).
Among most active underlying, Kotak Mahindra Bank witnessed an addition of 815 units of Open Interest in the April month futures, HDFC Bank witnessed an addition of 1,737 units of Open Interest in the April month futures, ICICI Bank witnessed an addition of 27 units of Open Interest in the April month futures, Infosys witnessed an addition of 8,164 units of Open Interest in the April month futures and State Bank of India witnessed a contraction of 449 units of Open Interest in the April month futures. (Provisional)
