Indian equity benchmark -- Nifty -- ended Tuesday’s trading session with minor gains, as investors awaited key quarterly results in a busy earnings week. After making a positive start, soon index slipped into a red terrain, as traders remained cautious to make significant moves ahead of a key economic data releases in the US. However, index erased all of its initial losses and traded in a positive terrain in remaining session, as investors took some support with Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy’s statement that some states in India are already in the high-income category in purchasing power parity (PPP) terms, and the country is likely to move to the upper-middle-income country by 2047. Debroy further said any presumption that the Indian economic growth rate will be driven only by exports may be misleading because there are plenty of endogenous sources of growth.
In late afternoon session, index trimmed some of its gains and ended with marginal gains. Traders got cautious, after a senior United Nations (UN) official said that India is projected to overtake China as the world's most populous country by the end of this month when its population is expected to reach 1.425 billion. A senior UN official also said that India's population is projected to stabilise after the year 2064 and will be around 1.5 billion at the end of the century. Some concerns came with a private report stating that the credit growth momentum is waning in the country and the crucial non-food loans growth is expected to slip to 10 per cent in FY24 from more than 15 per cent in FY23.
Traders were seen piling positions in PSU Bank, Metal and Realty, while selling was witnessed in Consumer Durables, Media and Financial Services. The top gainers from the F&O segment were ABB India, Marico and Ashok Leyland. On the other hand, the top losers were Crompton Greaves Consumer Electricls, IPCA Laboratories and HDFC Life Insurance Company. 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 1.26% and reached 11.52. The 50 share Nifty up by 25.85 points or 0.15% to settle at 17,769.25.
Nifty April 2023 futures closed at 17776 (LTP) on Tuesday, at a premium of 6.75 points over spot closing of 17769.25, while Nifty April 2023 futures ended at 17845 (LTP), at a premium of 75.75 points over spot closing. Nifty April futures saw a contraction of 4,929 units, taking the total open interest (Contracts) to 1,73,714 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 1.20 points at 2374.65 (LTP) compared with spot closing of 2373.45. The numbers of contracts traded were 52,462. (Provisional)
ICICI Bank April 2023 futures traded at a discount of 1.20 points at 912.00 (LTP) compared with spot closing of 913.20. The numbers of contracts traded were 50,201. (Provisional)
HDFC Bank April 2023 futures traded at a premium of 3.75 points at 1667.35 (LTP) compared with spot closing of 1663.60. The numbers of contracts traded were 44,691. (Provisional)
Infosys April 2023 futures traded at a discount of 1.50 points at 1225.50 (LTP) compared with spot closing of 1227.00. The numbers of contracts traded were 37,973. (Provisional)
Kotak Mahindra Bank April 2023 futures traded at a discount of 0.55 points at 1889.70 (LTP) compared with spot closing of 1890.25. The numbers of contracts traded were 29,567. (Provisional)
Among, Nifty calls, 17800 SP from the April month expiry was the most active call with an addition of 59,247 units open interests. Among Nifty puts, 17700 SP from the April month expiry was the most active put with an addition of 15,406 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,22,711 units) and that for Puts was at 17000 SP (2,74,341 units). The respective Support and Resistance levels of Nifty are: Resistance 17812.18 -- Pivot Point 17764.52 -- Support 17721.58.
The Nifty Put Call Ratio (PCR) finally stood at (1.08) for April month contract. The top five scrips with highest PCR on Tata Communications (1.91), Bank of Baroda (1.27), Godrej Properties (1.22), Bandhan Bank (1.20) and ITC (1.14).
Among most active underlying, HDFC Bank witnessed a contraction of 8,346 units of Open Interest in the April month futures, ICICI Bank witnessed an addition of 7,796 units of Open Interest in the April month futures, Reliance Industries witnessed an addition of 4,426 units of Open Interest in the April month futures, Axis Bank witnessed an addition of 2,624 units of Open Interest in the April month futures and State Bank of India witnessed a contraction of 40 units of Open Interest in the April month futures. (Provisional)
