Indian equity benchmark -- Nifty -- ended in negative terrain on Monday. After making a slightly positive start, suddenly index slipped near day’s low point. Sentiments were downbeat as investment in the Indian capital markets through participatory notes dropped to Rs 88,398 crore month-on-month in February amid higher valuation of domestic markets. This was the third consecutive monthly decline in the investment level. In afternoon session, index continued to trade on a lower note, as some concern came with a credit rating agency Crisil stating that India Inc is likely to report a halving of revenue growth in the fourth quarter of FY23, as companies start reporting their financials. It said the revenue growth will come down to 10-12 per cent as against 22.8 per cent for the January-March period in the year-ago.
However, index trimmed some of its losses in the last hours of the trade, as some support came after India’s inflation based on wholesale price index (WPI) declined further to 1.34% (Provisional) for the month of March 2023 as against 3.85% recorded in February 2023, due to fall in prices of non-food articles, mineral oils and electricity. Traders got relief after Finance Minister Nirmala Sitharaman said that Indian economy will stay on course and is likely to grow at 7 per cent in 2022-23. But, index unable to surpass neutral line and ended with losses of 121.15 points.
Traders were seen piling positions in FMCG, Realty and Auto, while selling was witnessed in IT, Pharma and Healthcare Index. The top gainers from the F&O segment were Aditya Birla Capital, RBL Bank and Nestle India. On the other hand, the top losers were Infosys, LTIMindtree and Tech Mahindra. 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 3.21% and reached 12.29. The 50 share Nifty down by 121.15 points or 0.68 % to settle at 17,706.85.
Nifty April 2023 futures closed at 17751.00 (LTP) on Monday, at a premium of 44.15 points over spot closing of 17706.85, while Nifty April 2023 futures ended at 17812.95 (LTP), at a premium of 106.10 points over spot closing. Nifty April futures saw an addition of 11,110 units, taking the total open interest (Contracts) to 2,00,271 units. The near month derivatives contract will expire on April 27, 2023. (Provisional)
From the most active contracts, Infosys April 2023 futures traded at a premium of 2.00 points at 1261.00 (LTP) compared with spot closing of 1259.00. The numbers of contracts traded were 1,09,356. (Provisional)
HDFC Bank April 2023 futures traded at a premium of 6.10 points at 1671.15 (LTP) compared with spot closing of 1665.05. The numbers of contracts traded were 46,321. (Provisional)
Tata Consultancy Services April 2023 futures traded at a premium of 13.10 points at 3152.10 (LTP) compared with spot closing of 3139.00. The numbers of contracts traded were 40,205. (Provisional)
ICICI Bank April 2023 futures traded at a premium of 3.45 points at 903.05 (LTP) compared with spot closing of 899.60. The numbers of contracts traded were 34,655. (Provisional)
Reliance Industries April 2023 futures traded at a premium of 2.90 points at 2370.25 (LTP) compared with spot closing of 2367.35. The numbers of contracts traded were 33,731. (Provisional)
Among, Nifty calls, 18000 SP from the April month expiry was the most active call with an addition of 6,526 units open interests. Among Nifty puts, 17700 SP from the April month expiry was the most active put with an addition of 10,217 units open interests. The maximum OI outstanding for Calls was at 18000 SP (79,200 units) and that for Puts was at 17000 SP (1,12,429 units). The respective Support and Resistance levels of Nifty are: Resistance 17855.22 -- Pivot Point 17714.63 -- Support 17566.27.
The Nifty Put Call Ratio (PCR) finally stood at (1.15) for April month contract. The top five scrips with highest PCR on Siemens (1.22), AU Small Finance Bank (1.22), Bajaj Auto (1.11), Godrej Properties (0.98) and Indraprastha Gas (0.98).
Among most active underlying, Infosys witnessed an addition of 7,905 units of Open Interest in the April month futures, HDFC Bank witnessed an addition of 3,834 units of Open Interest in the April month futures, State Bank of India witnessed an addition of 1,285 units of Open Interest in the April month futures, Tata Consultancy Services witnessed an addition of 4,329 units of Open Interest in the April month futures and ICICI Bank witnessed an addition of 5,754 units of Open Interest in the April month futures. (Provisional)
