Indian equity benchmark -- Nifty -- ended in negative terrain on last trading day of week. Market made a negative start and soon extended its losses, as traders remained cautious with exchange data showing that Foreign Portfolio Investors were net sellers, offloading shares worth Rs 144.73 crore. However, markets staged some recovery in late morning deals, as traders took some support with a domestic ratings agency -- Icra Ratings stating that the RBI's rate hike will not impact collection efficiencies for non-bank lenders. It said this is so primarily because of the collaterals given by borrowers and the priority they accord to repayments.

In afternoon session, market again added losses and ended in negative terrain, as traders got worried with a private report predicting that higher food prices likely nudged up India's annual retail inflation last month from a 12-month low in December, but it stayed within the Reserve Bank of India's targeted range for a third consecutive month. Some concerns came with another report that a year of war in Ukraine has already made a dent in world prosperity. But its deeper impact will be felt in how the conflict plays into shifts that were already reshaping the global economy before Russia's tanks rolled in.

Most of the sectoral indices ended in green except Metal, FMCG and IT. The top gainers from the F&O segment were Aurobindo Pharma, Piramal Enterprises and Indus Towers. On the other hand, the top losers were Lupin, Astral and United Breweries. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 17450 -17550 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.26% and reached 12.75. The 50 share Nifty down by 36.95 points or 0.21% to settle at 17,856.50.

Nifty February 2023 futures closed at 17870.00 (LTP) on Friday, at a premium of 13.50 points over spot closing of 17856.50, while Nifty March 2023 futures ended at 17972.00 (LTP), at a premium of 115.50 points over spot closing. Nifty February futures saw an addition of 9,823 units, taking the total outstanding open interest (Contracts) to 2,08,208 units. The near month derivatives contract will expire on February 23, 2023. (Provisional)
 
From the most active contracts, Adani Enterprises February 2023 futures traded at a premium of 7.00 points at 1860.00 (LTP) compared with spot closing of 1853.00. The numbers of contracts traded were 49,686. (Provisional)
 
Reliance Industries February 2023 futures traded at a premium of 5.00 points at 2341.50 (LTP) compared with spot closing of 2336.50. The numbers of contracts traded were 28,953. (Provisional)
 
Adani Ports and Special Economic Zone February 2023 futures traded at a premium of 1.80 points at 585.80 (LTP) compared with spot closing of 584.00. The numbers of contracts traded were 18,275. (Provisional)
 
Aurobindo Pharma February 2023 futures traded at a discount of 1.30 points at 467.15 (LTP) compared with spot closing of 468.45. The numbers of contracts traded were 17,880. (Provisional)
 
Voltas February 2023 futures traded at a premium of 1.60 points at 851.50 (LTP) compared with spot closing of 849.90. The numbers of contracts traded were 17,721. (Provisional)

Among, Nifty calls, 18000 SP from the February month expiry was the most active call with an addition of 6,294 units open interests. Among Nifty puts, 17800 SP from the February month expiry was the most active put with an addition of 7,592 units open interests. The maximum OI outstanding for Calls was at 18000 SP (73,407 units) and that for Puts was at 17500 SP (78,121 units). The respective Support and Resistance levels of Nifty are: Resistance 17888.63 -- Pivot Point 17844.81 -- Support -- 17812.68.

The Nifty Put Call Ratio (PCR) finally stood at (1.21) for February month contract. The top five scrips with highest PCR on Voltas (1.76), Zydus Lifesciences (1.27), Mahindra & Mahindra Financial Services (1.13), Aurobindo Pharma (1.08) and Bajaj Finance (1.07).

Among most active underlying, Adani Enterprises witnessed an addition of 3,146 units of Open Interest in the February month futures, Reliance Industries witnessed an addition of 3,128 units of Open Interest in the February month futures, Mahindra & Mahindra witnessed an addition of 569 units of Open Interest in the February month futures, State Bank of India witnessed a contraction of 61 units of Open Interest in the February month futures and HDFC Bank witnessed an addition of 192 units of Open Interest in the February month futures. (Provisional)