The local benchmark -- Nifty – ended Tuesday’s session in green territory. Market made positive start, as Finance Ministry said a Bill to end retrospective taxes imposed on indirect transfer of Indian assets will encourage companies to invest in India and help the country become a $5-trillion economy. Market extended its gains after Reserve Bank issued draft guidelines to further liberalise regulatory framework governing overseas investments with a view to promote ease of doing business. The RBI has placed on its website two documents -- draft Foreign Exchange Management (Non-debt Instruments - Overseas Investment) Rules, 2021 and draft Foreign Exchange Management (Overseas Investment) Regulations, 2021.
However, in late afternoon session, market failed to hold gains and turned negative for little time, as country’s unemployment rate rose to a six-week high of 8.1% in the week ended August 8, 2021. Further, index bounce back in green zone, as country's exports rose by 50.45 percent to $7.41 billion during August 1-7, on account of healthy growth in the shipments of engineering goods, gems and jewellery as well as petroleum products.
Most of the sectoral indices ended in red except IT, Bank and Healthcare. The top gainers from the F&O segment were Escorts, Cummins India and Navin Fluorine International. On the other hand, the top losers were Indiabulls Housing Finance, National Aluminium Company and Manappuram Finance. 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 increased by 0.79% and reached 12.71. The 50 share Nifty up by 21.85 points or 0.13% to settle at 16,280.10.
Nifty August 2021 futures closed at 16270.40 (LTP) on Tuesday, at a discount of 9.70 points over spot closing of 16280.10, while Nifty September 2021 futures ended at 16313.15 (LTP), at a premium of 33.05 points over spot closing. Nifty August futures saw an addition of 8,490 units, taking the total open interest (Contracts) to 2,57,257 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 6.50 points at 2091.50 (LTP) compared with spot closing of 2085.00. The numbers of contracts traded were 31,744 (Provisional).
Bharti Airtel August 2021 futures traded at a premium of 0.20 points at 622.10 (LTP) compared with spot closing of 621.90. The numbers of contracts traded were 27,718 (Provisional).
SBIN August 2021 futures traded at a premium of 1.25 points at 427.50 (LTP) compared with spot closing of 426.25. The numbers of contracts traded were 25,138 (Provisional).
Motherson Sumi Systems August 2021 futures traded at a discount of 0.05 points at 223.00 (LTP) compared with spot closing of 223.05. The numbers of contracts traded were 22,553 (Provisional).
Tata Steel August 2021 futures traded at a premium of 4.85 points at 1377.00 (LTP) compared with spot closing of 1372.15. The numbers of contracts traded were 19,629 (Provisional).
Among, Nifty calls, 16500 SP from the August month expiry was the most active call with an addition of 4,641 units open interests. Among Nifty puts, 16300 SP from the August month expiry was the most active put with an addition of 2,288 units open interests. The maximum OI outstanding for Calls was at 16500 SP (40,566 units) and that for Puts was at 15000 SP (94,010 units). The respective Support and Resistance levels of Nifty are: Resistance 16,358.82 -- Pivot Point 16,280.53 -- Support -- 16,201.82.
The Nifty Put Call Ratio (PCR) finally stood at (1.79) for August month contract. The top five scrips with highest PCR on Tata Chemicals (1.05), Kotak Mahindra Bank (0.97), PEL (0.88), HDFC (0.84) and Hero Motocorp (0.78).
Among most active underlying, Bharti Airtel witnessed an addition of 2,897 units of Open Interest in the August month futures contract, Tata Steel witnessed a contraction of 37 units of Open Interest in the August month futures contract, Motherson Sumi Systems witnessed an addition of 617 units of Open Interest in the August month futures contract, Reliance Industries witnessed a contraction of 1,012 units of Open Interest in the August month futures contract and SBIN witnessed an addition of 1,806 units of Open Interest in the August month futures contract (Provisional).
