The local benchmark -- Nifty -- ended the Friday’s session in green zone. Market made cautious start, as Reserve Bank Governor Shaktikanta Das said the second wave of the pandemic took a grievous toll on India, but the dented economic activity has started recovering from late-May. Further, market traded in red, as foreign institutional investors (FIIs) stood as net sellers in the capital market as they offloaded shares worth Rs 1,245.29 crore on Thursday, as per provisional exchange data. Some cautiousness also came after Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) said that the gross non-performing assets (GNPAs) ratio of banks may increase to 9.8 percent by March 2022 from 7.48 percent in March 2021 under a baseline scenario.
However, in afternoon trade market entered into positive territory, as credit rating agency, Moody's Investors Service assessed the overall economic effect of the second wave to be softer than that during the first wave of pandemic last year, although delivery of and access to vaccines will determine the durability of recovery. Moody's expects the current lockdowns to have less of an adverse impact on economic activity than the nationwide lockdown in April 2020 because the latest restrictions have been more targeted, localised and less stringent. Finally, Nifty ended the session above 15700 mark.
Most of the sectoral indices ended in green except Auto, FMGC and Metal. The top gainers from the F&O segment were Tata Chemicals, Trent and P I Industries. On the other hand, the top losers were Marico, Adani Enterprises and Vodafone Idea. 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 decreased by 5.84% and reached 12.09. The 50 share Nifty up by 42.20 points or 0.27% to settle at 15,722.20.
Nifty July 2021 futures closed at 15747.20 (LTP) on Friday, at a premium of 25.00 points over spot closing of 15722.20, while Nifty August 2021 futures ended at 15793.15 (LTP), at a premium of 70.95 points over spot closing. Nifty July futures saw a contraction of 1,017 units, taking the total open interest (OI) to 1,92,504 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 5.80 points at 2137.35 (LTP) compared with spot closing of 2131.55. The numbers of contracts traded were 33,768 (Provisional).
Tata Chemicals July 2021 futures traded at a premium of 4.35 points at 770.90 (LTP) compared with spot closing of 766.55. The numbers of contracts traded were 17,528 (Provisional).
Bharti Airtel July 2021 futures traded at a premium of 1.60 points at 527.05 (LTP) compared with spot closing of 525.45. The numbers of contracts traded were 17,487 (Provisional).
Aurobindo Pharma July 2021 futures traded at a premium of 2.95 points at 1001.85 (LTP) compared with spot closing of 998.90. The numbers of contracts traded were 15,929 (Provisional).
Tata Steel July 2021 futures traded at a premium of 5.75 points at 1143.65 (LTP) compared with spot closing of 1137.90. The numbers of contracts traded were 14,181 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 1,022 units open interests. Among Nifty puts, 15700 SP from the July month expiry was the most active put with an addition of 553 units open interests. The maximum OI outstanding for Calls was at 16000 SP (53,379 units) and that for Puts was at 15500 SP (66,013 units). The respective Support and Resistance levels of Nifty are: Resistance 15,761.72 -- Pivot Point 15,698.83 -- Support -- 15,659.32.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for July month contract. The top five scrips with highest PCR on Indus Towers (0.98), BEL (0.89), Apollo Hospitals Enterprise (0.84), Adani Enterprises (0.83) and BPCL (0.82).
Among most active underlying, Reliance Industries witnessed a contraction of 200 units of Open Interest in the July month futures contract, Bharti Airtel witnessed an addition of 962 units of Open Interest in the July month futures contract, Adani Enterprises witnessed an addition of 169 units of Open Interest in the July month futures contract, Tata Steel witnessed an addition of 541 units of Open Interest in the July month futures contract and Tata Chemicals witnessed an addition of 2,299 units of Open Interest in the July month futures contract (Provisional).
