Indian equity benchmark -- Nifty -- ended on a higher note with over half a percent gains, ahead of weekly F&O expiry. Index made a cautious start, as traders remained on sidelines ahead of macro-economic data -- consumer price index (CPI) and Index of Industrial Production (IIP) -- due to be released later in the day. Some concerns also came as the International Monetary Fund (IMF) slashed its economic growth forecast for India by 20 basis points (bps) to 5.9 per cent for 2023-24 (FY24), citing lesser scope for pent-up demand due to historical revisions to data. The IMF also projected India’s retail inflation to ease to 4.9 per cent in FY24 from 6.7 per cent in FY23, and the current account deficit to come down to 2.2 per cent of GDP from an estimated 2.6 per cent a year ago.
However, index soon added gains to remain in green for the whole day, as sentiments were optimistic, amid reports that foreign investors turned net buyers of Indian shares over the past couple of sessions. Foreign investors bought about $1 billion in domestic equities from March 28 to April 10. In last hour of the session, market traded near day’s high point. Investors took a note of rating agency Crisil’s report stating that power demand in the country rose 7 per cent on an annual basis in the three months ended March (Q4). The growth in the March quarter was led by increased heating requirement in winter months and robust economic activity. Finally, index ended with gains of 90.10 points.
Most of the sectorial indices ended in green except PSU Bank, Media and FMCG. The top gainers from the F&O segment were Divi's Laboratories, Laurus Labs and Metropolis Healthcare. On the other hand, the top losers were Cholamandalam Investment and Finance Company, ABB India and Power Finance Corporation. 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 increased by 2.48% and reached 12.27. The 50 share Nifty up by 90.10 points or 0.51% to settle at 17,812.40.
Nifty April 2023 futures closed at 17863.35 (LTP) on Wednesday, at a premium of 50.95 points over spot closing of 17812.40, while Nifty May 2023 futures ended at 17918.00 (LTP), at a premium of 105.60 points over spot closing. Nifty April futures saw an addition 12,159 units, taking the total open interest (Contracts) to 1,98,704 units. The near month derivatives contract will expire on April 27, 2023. (Provisional)
From the most active contracts, Reliance Industries April 2023 futures traded at a premium of 5.30 points at 2352.00 (LTP) compared with spot closing of 2346.70. The numbers of contracts traded were 32,356. (Provisional)
Divi's Laboratories April 2023 futures traded at a discount of 1.00 points at 3208.95 (LTP) compared with spot closing of 3209.95. The numbers of contracts traded were 27,850. (Provisional)
Infosys April 2023 futures traded at a premium of 1.35 points at 1430.35 (LTP) compared with spot closing of 1429.00. The numbers of contracts traded were 25,117. (Provisional)
ICICI Bank April 2023 futures traded at a premium of 1.80 points at 892.80 (LTP) compared with spot closing of 891.00. The numbers of contracts traded were 23,151. (Provisional)
Tata Consultancy Services April 2023 futures traded at a premium of 3.45 points at 3248.95 (LTP) compared with spot closing of 3245.50. The numbers of contracts traded were 22,998. (Provisional)
Among, Nifty calls, 18000 SP from the April month expiry was the most active call with an addition of 6,018 units open interests. Among Nifty puts, 17800 SP from the April month expiry was the most active put with an addition of 16,476 units open interests. The maximum OI outstanding for Calls was at 18000 SP (75,851 units) and that for Puts was at 17000 SP (1,15,439 units). The respective Support and Resistance levels of Nifty are: Resistance 17853.01 -- Pivot Point 17785.13 -- Support 17744.51.
The Nifty Put Call Ratio (PCR) finally stood at (1.29) for April month contract. The top five scrips with highest PCR on Siemens (1.19), Bajaj Auto (1.12), Mphasis (1.03), ICICI Bank (1.01) and Eicher Motors (1.00).
Among most active underlying, Reliance Industries witnessed an addition of 4,910 units of Open Interest in the April month futures, HDFC Bank witnessed an addition of 951 units of Open Interest in the April month futures, ICICI Bank witnessed an addition of 3,589 units of Open Interest in the April month futures, Infosys witnessed an addition of 3,730 units of Open Interest in the April month futures and Divi's Laboratories witnessed an addition of 3,953 units of Open Interest in the April month futures. (Provisional)
