After spending most of the time in red zone, local benchmark -- Nifty -- ended the session slightly in green on Monday. Market made negative start, as Former RBI Governor D Subbarao has expressed concerns over ‘extreme unevenness’ in economic recovery and ‘sharpening inequalities’ between upper-income segments and lower-income households in the country, cautioning that the trend will hit growth prospects going forward. Index remained in red territory, as the wholesale price-based (WPI) inflation accelerated to a record high of 12.94 per cent in May, on rising prices of crude oil and manufactured goods. Low base effect also contributed to the spike in WPI inflation in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent. This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation. In April, 2021, WPI inflation hit double digit at 10.49 per cent. However, in late afternoon session, market wiped out all the losses to trade near neutral line, as India’s foreign exchange reserves crossed the $600 billion-mark for the first time to touch a new high of $605 billion as on June 4. Besides, even during the second wave of COVID-19, direct tax collection has nearly doubled in FY22 so far, compared with the same period in the previous fiscal year.
Most of the sectoral indices ended in red except IT, FMGC and PSU Bank. The top gainers from the F&O segment were Torrent Pharmaceuticals, Indiabulls Housing Finance and AU Small Finance Bank. On the other hand, the top losers were Adani Enterprises, Adani Ports and BHEL. In the index option segment, maximum OI continues to be seen in the 15900 -16500 calls and 14500 -15,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 3.95% and reached 14.66. The 50 share Nifty up by 12.50 points or 0.07% to settle at 15,811.85.
Nifty June 2021 futures closed at 15836.00 (LTP) on Monday, at a premium of 24.15 points over spot closing of 15811.85, while Nifty July 2021 futures ended at 15885.00 (LTP), at a premium of 73.15 points over spot closing. Nifty June futures saw an addition of 3,805 units, taking the total open interest (OI) to 1,61,150 units. The near month derivatives contract will expire on June 24, 2021 (Provisional).
From the most active contracts, Adani Ports June 2021 futures traded at a premium of 3.80 points at 765.80 (LTP) compared with spot closing of 762.00. The numbers of contracts traded were 81,307 (Provisional).
Reliance Industries June 2021 futures traded at a premium of 9.00 points at 2254.00 (LTP) compared with spot closing of 2245.00. The numbers of contracts traded were 71,387 (Provisional).
Adani Enterprises June 2021 futures traded at a premium of 9.40 points at 1519.75 (LTP) compared with spot closing of 1510.35. The numbers of contracts traded were 56,702 (Provisional).
Tata Steel June 2021 futures traded at a discount of 22.05 points at 1142.45 (LTP) compared with spot closing of 1164.50. The numbers of contracts traded were 26,560 (Provisional).
SBIN June 2021 futures traded at a premium of 1.80 points at 431.80 (LTP) compared with spot closing of 430.00. The numbers of contracts traded were 25,581 (Provisional).
Among, Nifty calls, 16000 SP from the June month expiry was the most active call with an addition of 95 units open interests. Among Nifty puts, 15700 SP from the June month expiry was the most active put with an addition of 3,077 units open interests. The maximum OI outstanding for Calls was at 16000 SP (32,958 units) and that for Puts was at 15500 SP (41,297 units). The respective Support and Resistance levels of Nifty are: Resistance 15,887.77 -- Pivot Point 15,747.13 -- Support -- 15,671.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.60) for June month contract. The top five scrips with highest PCR on Titan Company (0.99), PVR (0.89), Bajaj Finance (0.85), Wipro (0.81) and Indiabulls Housing Finance (0.78).
Among most active underlying, Adani Enterprises witnessed an addition of 1,125 units of Open Interest in the June month futures contract, Adani Ports witnessed an addition of 5,907 units of Open Interest in the June month futures contract, Reliance Industries witnessed an addition of 5,538 units of Open Interest in the June month futures contract, Tata Steel witnessed a contraction of 1,557 units of Open Interest in the June month futures contract and Bajaj Finance witnessed a contraction of 983units of Open Interest in the June month futures contract (Provisional).
