S&P CNX -- Nifty -- ended Friday’s trade above its crucial 15,850 level. Market made positive start, as Crisil’s report that States' revenues is set to cross the Pre-Covid pandemic level in the current fiscal (FY22), driven by higher tax buoyancy, rise in sales tax collections from petroleum products coupled with increase in grants following 15th Finance Commission recommendations. It noted that revenue of the top 10 states had plunged 600 basis points (bps) last fiscal. Further, market turned volatile for little time and soon added gains as traders remained optimistic, as Chief Economic Adviser K.V. Subramanian said food inflation is likely to moderate on account of the twin impact of opening up of economic activities and good monsoon and attributed the rise in food prices to restrictions imposed by several states during April-May to deal with the second wave of Covid-19. Moreover, he asserted that high food inflation has not impacted a large section of population as they are being given free ration under the Pradhan Mantri Garib Kalyan Yojana.
Index continued its gaining monument till the end of the session. Some support also came, as industry body -- the National Association of Software and Service Companies (Nasscom) has said that India's share in the global engineering and research and development (ER&D) market is likely to grow at a compound annual growth rate (CAGR) of 12-13 per cent to reach $63 billion by 2025.
Most of the sectoral indices ended in green except FMGC. The top gainers from the F&O segment were Havells, HCL Tech and Hero Motocorp. On the other hand, the top losers were Nippon Life India Asset Management, IRCTC and Indus Tower. In the index option segment, maximum OI continues to be seen in the 15900 -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 decreased by 11.45% and reached 13.37. The 50 share Nifty up by 69.90 points or 0.44% to settle at 15,860.35.
Nifty July 2021 futures closed at 15894.25 (LTP) on Friday, at a premium of 33.90 points over spot closing of 15860.35, while Nifty August 2021 futures ended at 15940.00 (LTP), at a premium of 79.65 points over spot closing. Nifty July futures saw an addition of 1,95,732 units, taking the total open interest (OI) to 9,274 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, Reliance Industries July 2021 futures traded at a premium of 11.55 points at 2116.00 (LTP) compared with spot closing of 2104.45. The numbers of contracts traded were 91,381(Provisional).
Tata Steel July 2021 futures traded at a premium of 6.15 points at 1171.40 (LTP) compared with spot closing of 1165.25. The numbers of contracts traded were 29,695 (Provisional).
SBIN July 2021 futures traded at a premium of 2.05 points at 430.85 (LTP) compared with spot closing of 428.80. The numbers of contracts traded were 27,171 (Provisional).
Kotak Mahindra Bank July 2021 futures traded at a premium of 12.15 points at 1747.15 (LTP) compared with spot closing of 1735.00. The numbers of contracts traded were 23,446 (Provisional).
Infosys July 2021 futures traded at a premium of 7.50 points at 1581.70 (LTP) compared with spot closing of 1574.20. The numbers of contracts traded were 19,727 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 2,787 units open interests. Among Nifty puts, 15800 SP from the July month expiry was the most active put with an addition of 6,937 units open interests. The maximum OI outstanding for Calls was at 16500 SP (34,305 units) and that for Puts was at 15500 SP (52,773 units). The respective Support and Resistance levels of Nifty are: Resistance 15,896.67 -- Pivot Point 15,834.48 -- Support -- 15,798.17.
The Nifty Put Call Ratio (PCR) finally stood at (1.39) for July month contract. The top five scrips with highest PCR on Trent (1.54), Indus Towers (1.02), Alembic Pharmaceuticals (0.99), BPCL (0.94) and Adani Enterprises (0.86).
Among most active underlying, Reliance Industries witnessed an addition of 16,116 units of Open Interest in the July month futures contract, Tata Steel witnessed an addition of 2,193 units of Open Interest in the July month futures contract, Infosys witnessed an addition of 5,258 units of Open Interest in the July month futures contract, SBIN witnessed an addition of 2,984 units of Open Interest in the July month futures contract and Kotak Mahindra Bank witnessed an addition of 8,412 units of Open Interest in the July month futures contract (Provisional).
