Nifty -- ended the session in red on Tuesday. Market made cautious start, as domestic credit ratings agency Crisil has cut India’s gross domestic product (GDP) growth forecast to 9.5 per cent for the current fiscal (FY22) as compared to 11 percent projected earlier due to the hit to private consumption and investments following the second wave of COVID-19. It joins other watchers who have cut their FY22 growth projections, with some pegging it as low as 7.9 percent. The economy had contracted by 7.3 percent in FY21. Soon, market touched its low point, as PHD Chamber of Commerce and Industry (PHDCCI) in its latest survey pointed out that businesses are struggling with rising cost of raw materials amid the second COVID wave as restrictions in many parts of the country have disrupted supply chains and also impacted the pace of economic recovery. In a survey, the industry body said that going ahead, a substantial stimulus to push the growth of the Indian economy impacted by the second wave of the pandemic would be crucial.
However, losses remain capped as traders took some relief with report that government pledged to provide free COVID-19 vaccines to all adults, in an effort to rein in a pandemic that has killed hundreds of thousands. Also, daily COVID-19 cases in India have been on a downward trend since early May, with data from the health ministry on Tuesday showing 86,498 infections in the last 24 hours.
Traders were seen piling positions in Auto, IT and FMGC sector while selling was witnessed in Bank, PSU Bank and Private Bank sector stocks. The top gainers from the F&O segment were Piramal Enterprises, Navin Fluorine International and P I Industries. On the other hand, the top losers were National Aluminium Company, Voltas and NMDC. 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 decreased by 2.20% and reached 15.23. The 50 share Nifty down by 11.55 points or 0.07% to settle at 15,740.10.
Nifty June 2021 futures closed at 15764.05 (LTP) on Tuesday, at a premium of 23.95 points over spot closing of 15740.10, while Nifty July 2021 futures ended at 15816.00 (LTP), at a premium of 75.90 points over spot closing. Nifty June futures saw an addition of 4,317 units, taking the total open interest (OI) to 1,47,754 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 2.60 points at 2214.10 (LTP) compared with spot closing of 2211.50. The numbers of contracts traded were 24,028 (Provisional).
SBIN June 2021 futures traded at a premium of 2.10 points at 429.50 (LTP) compared with spot closing of 427.40. The numbers of contracts traded were 23,172 (Provisional).
Tata Motors June 2021 futures traded at a premium of 1.65 points at 358.15 (LTP) compared with spot closing of 356.50. The numbers of contracts traded were 22,581 (Provisional).
Infosys June 2021 futures traded at a premium of 6.45 points at 1420.45 (LTP) compared with spot closing of 1414.00. The numbers of contracts traded were 21,052 (Provisional).
Piramal Enterprises June 2021 futures traded at a premium of 8.95 points at 2177.90 (LTP) compared with spot closing of 2168.95. The numbers of contracts traded were 21,003(Provisional).
Among, Nifty calls, 15800 SP from the June month expiry was the most active call with a contraction of 713 units open interests. Among Nifty puts, 15700 SP from the June month expiry was the most active put with an addition of 1,802 units open interests. The maximum OI outstanding for Calls was at 16000 SP (32,067 units) and that for Puts was at 15000 SP (43,752 units). The respective Support and Resistance levels of Nifty are: Resistance 15,785.93 -- Pivot Point 15,732.97 -- Support -- 15,687.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.63) for June month contract. The top five scrips with highest PCR on PVR (1.02), Adani Enterprises (0.91), Hindustan Petroleum Corporation (0.89), Muthoot Finance (0.79) and Biocon (0.78).
Among most active underlying, Adani Enterprises witnessed an addition of 1,864 units of Open Interest in the June month futures contract, Tata Motors witnessed an addition of 811 units of Open Interest in the June month futures contract, Adani Ports witnessed an addition of 521 units of Open Interest in the June month futures contract, Infosys witnessed a contraction of 373 units of Open Interest in the June month futures contract and SBIN witnessed an addition of 54 units of Open Interest in the June month futures contract (Provisional).
