Local benchmark S&P CNX -- Nifty -- ended Tuesday’s trade lower. Market made positive start, as Chief Economic Adviser K V Subramanian said the overall impact of the second wave of Covid-19 on the country's economy is not likely to be large but cautioned about an uncertainty surrounding the pandemic going ahead. Besides, the output of eight core sectors jumped by 56.1% mainly due to low base effect and uptick in production of natural gas, refinery products, steel, cement and electricity. Soon, market entered into red zone to trade near neutral line, as India's manufacturing sector activity witnessed a significant loss of growth momentum in May due to the intensification of the COVID-19 crisis and its detrimental impact on demand. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI), fell to 50.8 in May, down from 55.5 in April, as companies observed the slowest rises in new work and output in ten months amid the intensification of the COVID-19 crisis. Index continued its lower trade despite India's GDP grew at 1.6% in the January-March quarter of the fiscal year 2020-21, higher than the street forecast, but witnessed a contraction of 7.3% for the entire fiscal year. Even then, the figure beat the CSO's estimate of 8% contraction.
Most of the sectoral indices ended in red except IT, Media and Pharma. The top gainers from the F&O segment were Adani Enterprises, Alkem Laboratories and Adani Ports. On the other hand, the top losers were Aurobindo Pharma, Sun TV Network and SAIL. In the index option segment, maximum OI continues to be seen in the 15600 -16500 calls and 13500 -15,300 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.97% and reached 17.39. The 50 share Nifty down by 7.95 points or 0.05% to settle at 15,574.85.
Nifty June 2021 futures closed at 15623.40 (LTP) on Tuesday, at a premium of 48.55 points over spot closing of 15574.85, while Nifty July 2021 futures ended at 15682.35 (LTP), at a premium of 107.50 points over spot closing. Nifty June futures saw an addition of 3,150 units, taking the total open interest (Contracts) to 1,43,853 units. The near month derivatives contract will expire on June 24, 2021 (Provisional).
From the most active contracts, Reliance Industries June 2021 futures traded at a premium of 9.45 points at 2173.75 (LTP) compared with spot closing of 2164.30. The numbers of contracts traded were 55,747 (Provisional).
SBIN June 2021 futures traded at a discount of 2.30 points at 430.25 (LTP) compared with spot closing of 432.55. The numbers of contracts traded were 43,456 (Provisional).
Bajaj Finance June 2021 futures traded at a premium of 34.05 points at 5809.05 (LTP) compared with spot closing of 5775.00. The numbers of contracts traded were 31,168 (Provisional).
Tata Steel June 2021 futures traded at a discount of 18.40 points at 1082.30 (LTP) compared with spot closing of 1100.70. The numbers of contracts traded were 31,097 (Provisional).
Adani Ports June 2021 futures traded at a premium of 5.25 points at 804.25 (LTP) compared with spot closing of 799.00. The numbers of contracts traded were 26,417 (Provisional).
Among, Nifty calls, 16000 SP from the June month expiry was the most active call with an addition of 527 units open interests. Among Nifty puts, 15500 SP from the June month expiry was the most active put with an addition of 2,902 units open interests. The maximum OI outstanding for Calls was at 16000 SP (32,911 units) and that for Puts was at 15000 SP (40,033units). The respective Support and Resistance levels of Nifty are: Resistance 15,647.63 -- Pivot Point 15,587.97 -- Support --15,515.18.
The Nifty Put Call Ratio (PCR) finally stood at (1.60) for June month contract. The top five scrips with highest PCR on Adani Enterprises (1.08), P I Industries (0.97), Indus Towers (0.82), Alembic Pharmaceuticals (0.80) and Aarti Industries (0.78).
Among most active underlying, Reliance Industries witnessed a contraction of 898 units of Open Interest in the June month futures contract, Tata Steel witnessed an addition of 3,722 units of Open Interest in the June month futures contract, Adani Enterprises witnessed an addition of 363 units of Open Interest in the June month futures contract, SBIN witnessed a contraction of 2,045 units of Open Interest in the June month futures contract and Adani Ports witnessed an addition of 933 units of Open Interest in the June month futures contract (Provisional).
