Indian benchmark -- Nifty -- ended lower on Wednesday. Market made positive start, as traders took support with report stating that Indian companies' market capitalization has grown at the fastest pace last year among major economies despite contraction in GDP. Further, it said retail investors have shown higher interest in markets and their numbers have increased by 1.42 crore in FY21 and another 44 lakh in April and May, wondering if this will be a lasting behavioural change or is transitory. Further, market turned volatile and entered into red zone amid reports that the aftermath of the COVID-19 pandemic's second wave has left young Indian professionals and working women increasingly vulnerable to the economic uncertainty.
Adding more pessimism, Care Ratings in its latest report has said that notwithstanding the Rs 10,000-crore liquidity infusion through the G-Sap route by the RBI last week and fewer states tapping the bond markets, their cost of borrowing has been heading north, as the coupon hit the highest level since mid-March at 7 percent. At 7 percent, the weighted average yield of state debt has risen by a whopping 44 bps since the first auction of the fiscal on April 8. In late afternoon session, index added more losses to touch intraday low point, as Moody's Investors Service slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter. Finally, Nifty ended the session below 15700 mark.
Most of the sectoral indices ended in red except Auto. The top gainers from the F&O segment were Bharat Electronics, Dr. Lal PathLabs and City Union Bank. On the other hand, the top losers were Adani Ports, NMDC and UBL. In the index option segment, maximum OI continues to be seen in the 15600 -17000 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 4.25% and reached 15.37. The 50 share Nifty down by 85.80 points or 0.54% to settle at 15,686.95.
Nifty June 2021 futures closed at 15694.00 (LTP) on Wednesday, at a premium of 7.05 points over spot closing of 15686.95, while Nifty July 2021 futures ended at 15743.00 (LTP), at a premium of 56.05 points over spot closing. Nifty June futures saw a contraction of 3,250 units, taking the total open interest (OI) to 77,930 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 2.85 points at 2211.00 (LTP) compared with spot closing of 2208.15. The numbers of contracts traded were 51,033 (Provisional).
SBIN June 2021 futures traded at a discount of 0.75 points at 418.05 (LTP) compared with spot closing of 418.80. The numbers of contracts traded were 28,332 (Provisional).
HDFC Bank June 2021 futures traded at a premium of 0.30 points at 1487.30 (LTP) compared with spot closing of 1487.00. The numbers of contracts traded were 22,279 (Provisional).
Infosys June 2021 futures traded at a premium of 0.75 points at 1503.75 (LTP) compared with spot closing of 1503.00. The numbers of contracts traded were 21,887(Provisional).
Adani Ports June 2021 futures traded at a discount of 3.65 points at 714.90 (LTP) compared with spot closing of 718.55. The numbers of contracts traded were 20,297 (Provisional).
Among, Nifty calls, 15800 SP from the June month expiry was the most active call with an addition of 43,066 units open interests. Among Nifty puts, 15700 SP from the June month expiry was the most active put with an addition of 2,745 units open interests. The maximum OI outstanding for Calls was at 15800 SP (1,11,976 units) and that for Puts was at 15500 SP (73,860 units). The respective Support and Resistance levels of Nifty are: Resistance 15,808.62 -- Pivot Point 15,741.28 -- Support -- 15,619.62.
The Nifty Put Call Ratio (PCR) finally stood at (0.83) for June month contract. The top five scrips with highest PCR on Titan Company (1.23), HDFC Life Insurance (1.22), PEL (1.13), Tata Consumer Products (1.04) and Bandhan Bank (1.01).
Among most active underlying, Reliance Industries witnessed an addition of 3,596 units of Open Interest in the June month futures contract, Infosys witnessed an addition of 2,905 units of Open Interest in the June month futures contract, Adani Enterprises witnessed an addition of 735 units of Open Interest in the June month futures contract, Adani Ports witnessed a contraction of 1,822 units of Open Interest in the June month futures contract and HDFC Bank witnessed a contraction of 964 units of Open Interest in the June month futures contract (Provisional).
