Nifty -- ended Monday’s trading session in green. Market made optimistic start after government data showed that the output of eight core sectors grew 8.9 per cent in June, mainly due to a low base effect and uptick in production of natural gas, steel, coal and electricity. Index maintained its healthy gains, as India's manufacturing sector activities witnessed the strongest rate of growth in three months in July amid improved demand conditions and easing of some local COVID-19 restrictions. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months.
Traders also took support, as goods and services tax (GST) collection recovered to a three-month high in July, exceeding the Rs 1.1 trillion-mark, as economic activity resumed after most states eased Covid-19 restrictions. Market continued the gaining monument till the end of the session, as India’s unemployment rate fell to a four-month low of 6.95% in July, staging a near-complete recovery in all parameters of the labour markets, which were hit by the second wave of the pandemic. The labour participation rate, unemployment rate and employment rate have all bounced back to close to their March 2021 levels. Finally, Nifty finished the session with the gains of above half a percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were P I Industries, Cholamandalam Investment and Fin Co and CONCOR. On the other hand, the top losers were SAIL, Marico and UPL. In the index option segment, maximum OI continues to be seen in the 15950 -16200 calls and 14800 -15200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 0.01% and reached 12.81. The 50 share Nifty up by 122.10 points or 0.77% to settle at 15,885.15.
Nifty August 2021 futures closed at 15910.20 (LTP) on Monday, at a premium of 25.05 points over spot closing of 15885.15, while Nifty September 2021 futures ended at 15950.00 (LTP), at a premium of 64.85 points over spot closing. Nifty August futures saw an addition of 24,928 units, taking the total open interest (Contracts) to 2,13,324 units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, Reliance Industries August 2021 futures traded at a premium of 5.30 points at 2073.80 (LTP) compared with spot closing of 2068.50. The numbers of contracts traded were 25,066 (Provisional).
HDFC August 2021 futures traded at a premium of 7.45 points at 2470.00 (LTP) compared with spot closing of 2462.55. The numbers of contracts traded were 21,758 (Provisional).
Tata Power August 2021 futures traded at a premium of 0.75 points at 134.10 (LTP) compared with spot closing of 133.35. The numbers of contracts traded were 19,443 (Provisional).
Vedanta August 2021 futures traded at a premium of 1.10 points at 314.00 (LTP) compared with spot closing of 312.90. The numbers of contracts traded were 16,931 (Provisional).
Tata Steel August 2021 futures traded at a premium of 7.75 points at 1420.75 (LTP) compared with spot closing of 1413.00. The numbers of contracts traded were 16,561 (Provisional).
Among, Nifty calls, 16000 SP from the August month expiry was the most active call with an addition of 4,628 units open interests. Among Nifty puts, 15800 SP from the August month expiry was the most active put with an addition of 9,127 units open interests. The maximum OI outstanding for Calls was at 16000 SP (44,272 units) and that for Puts was at 15000 SP (95,962 units). The respective Support and Resistance levels of Nifty are: Resistance 15,907.15 -- Pivot Point 15,870.90 -- Support -- 15,848.90.
The Nifty Put Call Ratio (PCR) finally stood at (1.49) for August month contract. The top five scrips with highest PCR on Hero Motocorp (0.87), City Union Bank (0.86), Canara Bank (0.85), BPCL (0.85) and M&MFIN (0.84).
Among most active underlying, Tata Steel witnessed an addition of 15 units of Open Interest in the August month futures contract, Sun Pharmaceutical Industries witnessed an addition of 829 units of Open Interest in the August month futures contract, Tata Power witnessed an addition of 2,431 units of Open Interest in the August month futures contract, Vedanta witnessed an addition of 1,150 units of Open Interest in the August month futures contract and HDFC witnessed an addition of 1,349 units of Open Interest in the August month futures contract (Provisional).
