Nifty ends near intraday low point on Wednesday

NSE gauge -- Nifty50 -- ended the session near intraday low point on Wednesday. Market made slightly negative start, as State Bank of India's research division said that driven by several global and domestic factors, inflation may remain elevated in the coming months. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, said that faster-than-anticipated and robust recovery in some advanced countries is likely to exert upward pressure on international commodity prices, including crude oil. Further, market extended its down fall, as Global forecasting firm Oxford Economics has said retail inflation spike in May might cause the RBI to revisit its focus on growth risks, adding that a rate hike is still unlikely this year. It stated that the underlying dynamics of the May inflation print augur caution and the recovery remains on uncertain ground and with fiscal support in retreat, the RBI will likely be hesitant to remove policy accommodation anytime soon.

Index continued its weak trade till the end of the session even after government data showed that India’s merchandise exports grew 69.35 per cent year-on-year in May to $32.27 billion on account of low-base effect as well as rising demand from external markets. The growth has been driven by demand for items such as petroleum goods, engineering goods and gems and jewellery. Finally, nifty ended the day’s trade below 15800 mark. 

Most of the sectoral indices ended in red except FMGC and IT. The top gainers from the F&O segment were Tata Power, Hindustan Petroleum Corporation and Tata Consumer Products. On the other hand, the top losers were LIC Housing Finance, Adani Enterprises and Adani Ports. 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 1.78% and reached 14.87. The 50 share Nifty down by 101.70 points or 0.64% to settle at 15,767.55.

Nifty June 2021 futures closed at 15776.85 (LTP) on Wednesday, at a premium of 9.30 points over spot closing of 15767.55, while Nifty July 2021 futures ended at 15823.95 (LTP), at a premium of 56.40 points over spot closing. Nifty June futures saw a contraction of 5,101 units, taking the total open interest (OI) to 1,55,957 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 7.45 points at 2217.00 (LTP) compared with spot closing of 2209.55. The numbers of contracts traded were 33,209 (Provisional).

Tata Steel June 2021 futures traded at a discount of 24.00 points at 1116.00 (LTP) compared with spot closing of 1140.00. The numbers of contracts traded were 30,544 (Provisional).

Adani Enterprises June 2021 futures traded at a premium of 2.95 points at 1429.95 (LTP) compared with spot closing of 1427.00. The numbers of contracts traded were 20,259 (Provisional).

SBIN June 2021 futures traded at a premium of 0.25 points at 425.85 (LTP) compared with spot closing of 425.60. The numbers of contracts traded were 17,734 (Provisional).

Infosys June 2021 futures traded at a premium of 0.70 points at 1479.90 (LTP) compared with spot closing of 1479.20. The numbers of contracts traded were 15,130 (Provisional).

Among, Nifty calls, 16100 SP from the June month expiry was the most active call with an addition of 3,439 units open interests. Among Nifty puts, 15700 SP from the June month expiry was the most active put with a contraction of 1,332 units open interests. The maximum OI outstanding for Calls was at 16000 SP (35,940 units) and that for Puts was at 15500 SP (43,430 units). The respective Support and Resistance levels of Nifty are: Resistance 15,851.40 -- Pivot Point 15,797.00 -- Support -- 15,713.15.

The Nifty Put Call Ratio (PCR) finally stood at (1.38) for June month contract. The top five scrips with highest PCR on Titan Company (0.97), Asian Paints (0.84), PVR (0.78), Wipro (0.75) and Hindustan Petroleum Corporation (0.75).

Among most active underlying, Adani Enterprises witnessed a contraction of 152 units of Open Interest in the June month futures contract, Tata Steel witnessed an addition of 1,940  units of Open Interest in the June month futures contract, Reliance Industries witnessed an addition of 588 units of Open Interest in the June month futures contract, Infosys witnessed an addition of 2,293  units of Open Interest in the June month futures contract and Tata Motors witnessed an addition of 185 units of Open Interest in the June month futures contract (Provisional).