Indian benchmark -- Nifty -- finished the session in red zone on Friday. Market made positive start, as traders took support with industry chamber PHDCCI’s statement that the economy is recovering at a fast pace from the recent lows of April and May on the back of declining new coronavirus cases, continued unlocking in various parts of the country and calibrated economic reforms announced by the government. Market turned volatile for little time with report that India’s production of two Covid-19 vaccines will increase from September, but its target of having 1.35 billion doses by August and December looks difficult. Further, index failed to hold gains and entered into red zone, as RBI kept the monetary policy rate unchanged at 4 per cent and continued with the ‘accommodative’ policy stance. The central bank pegged real GDP growth forecast for FY22 at 9.5 per cent and at 17.2 per cent for FY23. Market continued its weak run till the end and closed the session below its crucial 16250 mark.
Most of the sectoral indices ended in red except Auto, IT and Metal. The top gainers from the F&O segment were Vodafone Idea, Adani Enterprises and Tata Chemicals. On the other hand, the top losers were Gujarat Gas, Metropolis Healthcare and Strides Pharma Science. In the index option segment, maximum OI continues to be seen in the 16400 -16700 calls and 14800 -15500 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.05% and reached 12.61. The 50 share Nifty down by 56.40 points or 0.35% to settle at 16,238.20.
Nifty August 2021 futures closed at 16267.00 (LTP) on Friday, at a premium of 28.80 points over spot closing of 16238.20, while Nifty September 2021 futures ended at 16311.75 (LTP), at a premium of 73.55 points over spot closing. Nifty August futures saw an addition of 2,556 units, taking the total outstanding open interest (OI) to 2,48,157 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 2.20 points at 2092.20 (LTP) compared with spot closing of 2090.00. The numbers of contracts traded were 58,485 (Provisional).
SBIN August 2021 futures traded at a premium of 1.80 points at 439.00 (LTP) compared with spot closing of 437.20. The numbers of contracts traded were 27,275 (Provisional).
Tata Chemicals August 2021 futures traded at a premium of 3.55 points at 827.55 (LTP) compared with spot closing of 824.00. The numbers of contracts traded were 25,068 (Provisional).
Adani Enterprises August 2021 futures traded at a premium of 8.00 points at 1547.00 (LTP) compared with spot closing of 1539.00. The numbers of contracts traded were 20,672 (Provisional).
Tata Steel August 2021 futures traded at a premium of 6.50 points at 1434.50 (LTP) compared with spot closing of 1428.00. The numbers of contracts traded were 19,419 (Provisional).
Among, Nifty calls, 16300 SP from the August month expiry was the most active call with a contraction of 1,275 units open interests. Among Nifty puts, 16200 SP from the August month expiry was the most active put with an contraction of 1,026 units open interests. The maximum OI outstanding for Calls was at 16500 SP (41,634 units) and that for Puts was at 15000 SP (99,174 units). The respective Support and Resistance levels of Nifty are: Resistance 16,308.87 -- Pivot Point 16,266.08 -- Support -- 16,195.42.
The Nifty Put Call Ratio (PCR) finally stood at (1.79) for August month contract. The top five scrips with highest PCR on HDFC (0.88), Hero Motocorp (0.88), Kotak Mahindra Bank (0.87), Tata Chemicals (0.85) and SRF (0.79).
Among most active underlying, Adani Enterprises witnessed an addition of 379 units of Open Interest in the August month futures contract, Reliance Industries witnessed an addition of 7,122 units of Open Interest in the August month futures contract, Tata Steel witnessed an addition of 1,877 units of Open Interest in the August month futures contract, Tata Chemicals witnessed an addition of 1,830 units of Open Interest in the August month futures contract and Bharti Airtel witnessed an addition of 1,481 units of Open Interest in the August month futures contract (Provisional).
