After spending most of time above the water, local benchmark -- Nifty -- ended the session in red on Friday. Market made cautious start, as foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 866.26 crore on July 29, as per provisional exchange data. Further, market added gains after Chief Economic Advisor K V Subramanian said headline inflation will come down under the 6 percent mark in July itself but will stay at an elevated level of over 5 percent for some time. Market maintained its gains above neutral line with Union Housing and Urban Affairs Ministry Secretary Durga Shanker Mishra’s statement that the real estate sector which has been stressed for quite some time now has started showing signs of improvement since the first quarter of the current fiscal (Q1FY22) and its contribution to the country's Gross domestic product (GDP) is expected to reach 10 percent by 2025 from the current 7 percent. However, in last leg of trade market failed to hold gains and entered into negative territory despite private report stating that the easing of restrictions on economic activity coupled with the increasing focus on ramping up operations and sales by businesses is having a positive impact on the hiring of freshers.
Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Metal, Bank and PSU Bank sector stocks. The top gainers from the F&O segment were Sun Pharmaceutical, SRF and Deepak Nitrite. On the other hand, the top losers were Indian Hotels Company, Dr. Lal PathLabs and Metropolis Lab. In the index option segment, maximum OI continues to be seen in the 15800 -16100 calls and 15600 -15800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.10% and reached 12.80. The 50 share Nifty down by 15.40 points or 0.09% to settle at 15,763.05.
Nifty August 2021 futures closed at 15785.00 (LTP) on Friday, at a premium of 21.95 points over spot closing of 15763.05, while Nifty September 2021 futures ended at 15826.00 (LTP), at a premium of 62.95 points over spot closing. Nifty August futures saw an addition of 20,272 units, taking the total open interest (Contracts) to 1,96,756 units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, Sun Pharmaceutical August 2021 futures traded at a premium of 0.45 points at 774.00 (LTP) compared with spot closing of 773.55. The numbers of contracts traded were 51,876 (Provisional).
SBIN August 2021 futures traded at a premium of 2.50 points at 434.70 (LTP) compared with spot closing of 432.20. The numbers of contracts traded were 38,787 (Provisional).
Tech Mahindra August 2021 futures traded at a premium of 2.10 points at 1209.80 (LTP) compared with spot closing of 1207.70. The numbers of contracts traded were 37,474 (Provisional).
Tata Steel August 2021 futures traded at a premium of 6.25 points at 1441.50 (LTP) compared with spot closing of 1435.25. The numbers of contracts traded were 24,781(Provisional).
Reliance Industries August 2021 futures traded at a premium of 7.00 points at 2044.00 (LTP) compared with spot closing of 2037.00. The numbers of contracts traded were 24,762 (Provisional).
Among, Nifty calls, 16000 SP from the August month expiry was the most active call with an addition of 3,321 units open interests. Among Nifty puts, 15700 SP from the August month expiry was the most active put with an addition of 205 units open interests. The maximum OI outstanding for Calls was at 15800 SP (44,353 units) and that for Puts was at 15000 SP (59,494 units). The respective Support and Resistance levels of Nifty are: Resistance 15,835.62 -- Pivot Point 15,790.23 -- Support -- 15,717.67.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for August month contract. The top five scrips with highest PCR on Canara Bank (1.06), Bandhan Bank (1.05), City Union Bank (1.01), Bajaj Finserv (0.91) and Hero Motocorp (0.89).
Among most active underlying, Sun Pharmaceutical witnessed an addition of 2,085 units of Open Interest in the August month futures contract, Tata Steel witnessed a contraction of 106 units of Open Interest in the August month futures contract, Tech Mahindra witnessed an addition of 1,375 units of Open Interest in the August month futures contract, SBIN witnessed an addition of 4,279 units of Open Interest in the August month futures contract and Vedanta witnessed an addition of 1,193 units of Open Interest in the August month futures contract (Provisional).
