The local benchmark -- Nifty -- ended the session below its crucial 15,700 mark on Friday. Market made negative start with reports that inflows into equity mutual funds dropped sharply by 40 per cent to Rs 5,988 crore in June on profit booking by investors as stock markets witnessed sharp rallies in recent times. In comparison, the equity mutual funds saw a net inflow to the tune of Rs 10,083 crore in May, the highest fund infusion in 14 months, data from the Association of Mutual Funds in India showed on Thursday.
Market continued its weak trade, as traders were cautious with private report that southwest monsoon has practically stalled over most parts of the country since June 19. This has not only delayed its progress over north India but has also badly impacted the sowing of the kharif crop. Traders failed to take support with Industry chamber PHDCCI’s statement that the gradual receding of the second wave of the COVID-19 pandemic has created scope for the economy to recover from the daunting impact witnessed in April and May 2021.
Finally, the index ended trading day in red, as Care Ratings’ report said that significant rise in prices of petrol and diesel in many Indian states, commodities such as edible oils, foodgrain, vegetables are seeing some inflation too. High petrol and diesel prices impact Wholesale Price Index (WPI) and Consumer Price Index (CPI), pushing up commodity prices, and that can be more damaging. The impact of fuel price hike is such that it percolates into prices of other goods by way of transport, logistics and freight costs.
Traders were seen piling positions in FMGC, Media and Metal sector while selling was witnessed in Bank, Auto and IT sector stocks. The top gainers from the F&O segment were Granules, DLF and AU Small Finance Bank. On the other hand, the top losers were Trent, Bajaj Auto and COFORGE. 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 4.55% and reached 12.94. The 50 share Nifty down by 38.10 points or 0.24% to settle at 15,689.80.
Nifty July 2021 futures closed at 15721.00 (LTP) on Friday, at a premium of 31.20 points over spot closing of 15689.80, while Nifty August 2021 futures ended at 15766.70 (LTP), at a premium of 76.90 points over spot closing. Nifty July futures saw a contraction of 3,694 units, taking the total open interest (OI) to 1,95,833 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, TCS July 2021 futures traded at a premium of 5.20 points at 3217.00 (LTP) compared with spot closing of 3211.80. The numbers of contracts traded were 33,229 (Provisional).
Tata Steel July 2021 futures traded at a premium of 6.25 points at 1246.00 (LTP) compared with spot closing of 1239.75. The numbers of contracts traded were 32,059 (Provisional).
Reliance Industries July 2021 futures traded at a premium of 8.60 points at 2080.55 (LTP) compared with spot closing of 2071.95. The numbers of contracts traded were 25,248 (Provisional).
Tata Motors July 2021 futures traded at a discount of 2.25 points at 305.10 (LTP) compared with spot closing of 307.35. The numbers of contracts traded were 15,334 (Provisional).
SBIN July 2021 futures traded at a premium of 1.90 points at 425.70 (LTP) compared with spot closing of 423.80. The numbers of contracts traded were 14,430 (Provisional).
Among, Nifty calls, 15800 SP from the July month expiry was the most active call with an addition of 1,185 units open interests. Among Nifty puts, 15700 SP from the July month expiry was the most active put with a contraction of 1,642 units open interests. The maximum OI outstanding for Calls was at 16000 SP (56,293 units) and that for Puts was at 15500 SP (63,451units). The respective Support and Resistance levels of Nifty are: Resistance 15,736.18 -- Pivot Point 15,684.47 -- Support -- 15,638.08.
The Nifty Put Call Ratio (PCR) finally stood at (1.26) for July month contract. The top five scrips with highest PCR on AU Small Finance Bank (1.05), Indus Towers (0.91), Apollo Hospitals Enterprise (0.87), Bajaj Finserv (0.82) and BEL (0.79).
Among most active underlying, Tata Steel witnessed an addition of 940 units of Open Interest in the July month futures contract, TCS witnessed an addition of 288 units of Open Interest in the July month futures contract, Tata Motors witnessed an addition of 2,130 units of Open Interest in the July month futures contract, Reliance Industries witnessed an addition of 2,218 units of Open Interest in the July month futures contract and Infosys witnessed an addition of 459 units of Open Interest in the July month futures contract (Provisional).
