Nifty -- ended Monday’s session below its crucial 15775 mark. Market made negative start with reports that foreign portfolio investors (FPIs) have pulled out Rs 4,515 crore from the equities segment in the first half of July as they turn cautious towards the Indian market. Market remained in red zone even after Chief Economic Advisor Krishnamurthy Subramanian said that the country’s economy will start witnessing a growth of 6.5 to 7 per cent from fiscal 2023 onwards, helped by various reforms undertaken by the government so far and also as Covid-19 vaccination drive progresses. In late afternoon deals, market added more losses to touch intraday low point, as Niti Aayog CEO Amitabh Kant expressed concern over high food inflation due to higher prices of oilseeds and edible oils. Traders overlooked of RBI’s report stating that the overseas direct investment of domestic companies more than doubled to $2.80 billion in June this year. On the global front, all Asian markets were under pressure as pessimism took hold following rising COVID-19 infections regionally and Wall Street’s first weekly loss following three weeks of gains. Finally, Nifty ended the session with cut of above a percent.
Most of the sectoral indices ended in green except Auto, Media and Pharma. The top gainers from the F&O segment were P I Industries, Bharat Electronics and Alkem Laboratories. On the other hand, the top losers were Vodafone Idea, L&TFH and Indus Tower. In the index option segment, maximum OI continues to be seen in the 15900 -16100 calls and 14900 -15,100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 8.32% and reached 12.68. The 50 share Nifty down by 171.00 points or 1.07% to settle at 15,752.40.
Nifty July 2021 futures closed at 15761.30 (LTP) on Monday, at a premium of 8.90 points over spot closing of 15752.40, while Nifty August 2021 futures ended at 15810.95 (LTP), at a premium of 58.55 points over spot closing. Nifty July futures saw an addition of 0.01 million (mn) units, taking the total open interest (OI) to 1,54,324 mn units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, Adani Ports July 2021 futures traded at a premium of 1.25 points at 675.10 (LTP) compared with spot closing of 673.85. The numbers of contracts traded were 36,056 (Provisional).
HDFC Bank July 2021 futures traded at a premium of 2.50 points at 1474.90 (LTP) compared with spot closing of 1472.40. The numbers of contracts traded were 30,411 (Provisional).
Reliance Industries July 2021 futures traded at a premium of 1.75 points at 2099.70 (LTP) compared with spot closing of 2097.95. The numbers of contracts traded were 26,459 (Provisional).
Tata Steel July 2021 futures traded at a premium of 0.75 points at 1264.80 (LTP) compared with spot closing of 1264.05. The numbers of contracts traded were 19,515 (Provisional).
SBIN July 2021 futures traded at a premium of 1.20 points at 429.70 (LTP) compared with spot closing of 428.50. The numbers of contracts traded were 17,091 (Provisional).
Among, Nifty calls, 15800 SP from the July month expiry was the most active call with an addition of 20,997 units open interests. Among Nifty puts, 15700 SP from the July month expiry was the most active put with a contraction of 3,564 units open interests. The maximum OI outstanding for Calls was at 16000 SP (57,427 units) and that for Puts was at 15000 SP (74,476 units). The respective Support and Resistance levels of Nifty are: Resistance 15,823.70 -- Pivot Point 15,765.60 -- Support -- 15,694.30.
The Nifty Put Call Ratio (PCR) finally stood at (1.16) for July month contract. The top five scrips with highest PCR on Apollo Hospitals Enterprise (0.93), Divi's Laboratories (0.87), BEL (0.84), AU Small Finance Bank (0.81) and Mindtree (0.78).
Among most active underlying, Adani Ports witnessed a contraction of 792 units of Open Interest in the July month futures contract, HDFC Bank witnessed an addition of 7,133 units of Open Interest in the July month futures contract, Tata Steel witnessed a contraction of 524 units of Open Interest in the July month futures contract, DLF witnessed an addition of 4 units of Open Interest in the July month futures contract and Adani Enterprises witnessed a contraction of 20 units of Open Interest in the July month futures contract (Provisional).
