NSE gauge -- Nifty50 -- extended its fall for third consecutive day. Market made negative start, as International Monetary Fund (IMF) has cut India's gross domestic product (GDP) growth forecast to 9.5 percent for the fiscal year to March 31, 2022 as the onset of a severe second COVID-19 wave cut into recovery momentum. This forecast for 2021-22 is lower than the 12.5 per cent growth in GDP that IMF had projected in April before the second wave took a grip. For 2022-23, it expects economic growth of 8.5 per cent, larger than the 6.9 per cent it had projected in April. Market extended downside, as Finance Minister Nirmala Sitharaman informed Parliament that the number of wilful defaulters has increased from 2,208 to 2,494 at the end of March 31, 2021. As per RBI data on global operations, during the last three financial years, public sector banks (PSBs) have effected recovery of Rs 3,12,987 crore in non-performing assets (NPAs) and written-off loans.
Index remained lower till the end of the session, as department-related Parliamentary Standing Committee observes that the stimulus package announced by the government for the economic revival from the pandemic hit economy has been found to be inadequate as the measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief.
All the sectoral indices ended in red except IT and Metal. The top gainers from the F&O segment were Bharti Airtel, Indus Tower and SAIL. On the other hand, the top losers were M&MFIN, Canara Bank and Navin Fluorine International. In the index option segment, maximum OI continues to be seen in the 15900 -16100 calls and 14900 -15,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.47% and reached 13.69. The 50 share Nifty down by 37.05 points or 0.24% to settle at 15,709.40.
Nifty July 2021 futures closed at 15707.50 (LTP) on Wednesday, at a discount of 1.90 points over spot closing of 15709.40, while Nifty August 2021 futures ended at 15745.00 (LTP), at a premium of 35.60 points over spot closing. Nifty July futures saw a contraction of 7,569 units, taking the total open interest (Contracts) to 1,25,275 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 4.00 points at 2039.00 (LTP) compared with spot closing of 2035.00. The numbers of contracts traded were 54,511 (Provisional).
Bharti Airtel July 2021 futures traded at a discount of 0.65 points at 567.15 (LTP) compared with spot closing of 567.80. The numbers of contracts traded were 31,031(Provisional).
Tata Steel July 2021 futures traded at a discount of 2.75 points at 1365.30 (LTP) compared with spot closing of 1368.05. The numbers of contracts traded were 24,749 (Provisional).
SBIN July 2021 futures traded at a premium of 0.65 points at 425.45 (LTP) compared with spot closing of 424.80. The numbers of contracts traded were 24,739 (Provisional).
ICICI Bank July 2021 futures traded at a discount of 3.20 points at 682.80 (LTP) compared with spot closing of 686.00. The numbers of contracts traded were 21,336 (Provisional).
Among, Nifty calls, 15800 SP from the July month expiry was the most active call with a contraction of 6,033 units open interests. Among Nifty puts, 15600 SP from the July month expiry was the most active put with an addition of 17,201 units open interests. The maximum OI outstanding for Calls was at 15800 SP (1,33,169 units) and that for Puts was at 15500 SP (1,02,947 units). The respective Support and Resistance levels of Nifty are: Resistance 15,813.45 -- Pivot Point 15,663.45 -- Support --15,559.40.
The Nifty Put Call Ratio (PCR) finally stood at (0.74) for July month contract. The top five scrips with highest PCR on Bajaj Finserv (1.25), ACC (1.13), Manappuram Finance (1.12), UltraTech Cement (1.12) and Jubilant FoodWorks (1.10).
Among most active underlying, Bharti Airtel witnessed an addition of 978 units of Open Interest in the July month futures contract, Tata Steel witnessed a contraction of 1,370 units of Open Interest in the July month futures contract, Reliance Industries witnessed an addition of 3,566 units of Open Interest in the July month futures contract, ICICI Bank witnessed an addition of 129 units of Open Interest in the July month futures contract and SBIN witnessed an addition of 2,820 units of Open Interest in the July month futures contract (Provisional).
