After spending most of the time in green zone, Nifty ended the Wednesday’s session in red zone. Market made positive start with Chief Economic Adviser (CEA) K V Subramanian’s statement that a number of reforms undertaken by the government in the last one year especially focused on removing supply side frictions are expected to spur investment, including foreign investment. Further, market extended its gains, as Finance Minister Nirmala Sitharaman exhorted ministries to aim to achieve more than their capital expenditure (capex) targets for this fiscal, highlighting that enhanced spending will play a critical role in revitalising the economy post-pandemic. However, in last leg of trade market entered into red zone, as Reserve Bank of India (RBI) in its latest data has showed that credit growth to the industrial sector remained in the negative territory during 2020-21, mainly due to the COVID-19 pandemic and resultant lockdowns. Traders failed to took support, as Union Cabinet may soon clear a proposal to provide government guarantee to security receipts issued by the National Asset Reconstruction Company (NARCL) as part of resolution of bad loans. Indian Banks' Association (IBA), entrusted with the task of setting up a bad bank, has pegged the government guarantee to be around Rs 31,000 crore.
Most of the sectoral indices ended in red except IT. The top gainers from the F&O segment were Cummins India, PFC and GMR Infrastructure. On the other hand, the top losers were DLF, IDFC First Bank and AU Small Finance Bank. In the index option segment, maximum OI continues to be seen in the 15900 -17000 calls and 14500 -15,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.32% and reached 13.05. The 50 share Nifty down by 26.95 points or 0.17% to settle at 15,721.50.
Nifty July 2021 futures closed at 15747.00 (LTP) on Wednesday, at a premium of 25.50 points over spot closing of 15721.50, while Nifty August 2021 futures ended at 15798.10 (LTP), at a premium of 76.60 points over spot closing. Nifty July futures saw an addition of 7,706 units, taking the total open interest (OI) to 1,96,301 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 5.70 points at 2117.70 (LTP) compared with spot closing of 2112.00. The numbers of contracts traded were 44,388 (Provisional).
Kotak Mahindra Bank July 2021 futures traded at a premium of 7.10 points at 1712.00 (LTP) compared with spot closing of 1704.90. The numbers of contracts traded were 33,459 (Provisional).
Tata Steel July 2021 futures traded at a premium of 5.05 points at 1170.00 (LTP) compared with spot closing of 1164.95. The numbers of contracts traded were 17,167 (Provisional).
SBIN July 2021 futures traded at a premium of 1.60 points at 420.60 (LTP) compared with spot closing of 419.00. The numbers of contracts traded were 15,497 (Provisional).
Infosys July 2021 futures traded at a premium of 5.65 points at 1585.65 (LTP) compared with spot closing of 1580.00. The numbers of contracts traded were 11,233 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 1,686 units open interests. Among Nifty puts, 15500 SP from the July month expiry was the most active put with an addition of 4,401 units open interests. The maximum OI outstanding for Calls was at 16000 SP (47,750 units) and that for Puts was at 15500 SP (61,800 units). The respective Support and Resistance levels of Nifty are: Resistance 15,804.15 -- Pivot Point 15,756.45 -- Support -- 15,673.80.
The Nifty Put Call Ratio (PCR) finally stood at (1.29) for July month contract. The top five scrips with highest PCR on Indus Towers (1.05), Coromandel International (1.03), BPCL (0.89), Adani Enterprises (0.87) and BEL (0.82).
Among most active underlying, Reliance Industries witnessed a contraction of 154 units of Open Interest in the July month futures contract, Kotak Mahindra Bank witnessed an addition of 5,286 units of Open Interest in the July month futures contract, Tata Steel witnessed an addition of 349 units of Open Interest in the July month futures contract, Infosys witnessed an addition of 324 units of Open Interest in the July month futures contract and SBIN witnessed an addition of 477 units of Open Interest in the July month futures contract (Provisional).
