NSE gauge -- Nifty50 -- ended the session on flat note. Market made positive start but failed to hold the grip and entered into negative zone, as fresh rupee denominated bond issuances witnessed a sharp decline of 45 per cent to Rs 1.3 lakh crore in Q1 FY2022 on a YoY and a QoQ basis (Rs 2.3 lakh crore each in Q4 FY2021 and Q1 FY2021), according to rating agency ICRA. Further, market continued its weak run, after Rating agency Moody's has said the asset quality risks for banks will rise in most parts of ASEAN and India, as the region battles new waves of coronavirus infections amid low vaccination rates. Traders took note that Union Minister of State for Finance Pankaj Chaudhary has said that the Government is taking effective measures to curb inflation especially food inflation keeping in view of the condition of the people suffering from coronavirus pandemic situation in the country. In late afternoon trade market trimmed most of losses, but continued trade below neutral line despite Finance Ministry said it has released the fifth monthly instalment of revenue deficit grant of Rs 9,871 crore to 17 states.
Most of the sectoral indices ended in red except Metal, PSU Bank and Realty. The top gainers from the F&O segment were Vedanta, Siemens and SAIL. On the other hand, the top losers were Trent, Lupin 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 0.05% and reached 12.71. The 50 share Nifty up by 2.15 points or 0.01% to settle at 16,282.25.
Nifty August 2021 futures closed at 16281.60 (LTP) on Wednesday, at a discount of 0.65 points over spot closing of 16282.25, while Nifty September 2021 futures ended at 16328.00 (LTP), at a premium of 45.75 points over spot closing. Nifty August futures saw an addition of 5,210 units, taking the total open interest (OI) to 2,60,076 mn units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, Tata Steel August 2021 futures traded at a premium of 4.45 points at 1432.95 (LTP) compared with spot closing of 1428.50. The numbers of contracts traded were 30,361(Provisional).
Reliance Industries August 2021 futures traded at a premium of 2.95 points at 2117.95 (LTP) compared with spot closing of 2115.00. The numbers of contracts traded were 27,538 (Provisional).
SBIN August 2021 futures traded at a premium of 1.45 points at 429.75 (LTP) compared with spot closing of 428.30. The numbers of contracts traded were 21,270 (Provisional).
Vedanta August 2021 futures traded at a premium of 1.25 points at 325.70 (LTP) compared with spot closing of 324.45. The numbers of contracts traded were 20,164 (Provisional).
Jindal Steel & Power August 2021 futures traded at a premium of 1.50 points at 421.30 (LTP) compared with spot closing of 419.80. The numbers of contracts traded were 13,312 (Provisional).
Among, Nifty calls, 16500 SP from the August month expiry was the most active call with an addition of 4,169 units open interests. Among Nifty puts, 16200 SP from the August month expiry was the most active put with a contraction of 1,130 units open interests. The maximum OI outstanding for Calls was at 16500 SP (44,786 units) and that for Puts was at 15000 SP (92,907 units). The respective Support and Resistance levels of Nifty are: Resistance 16,359.82 -- Pivot Point 16,261.18 -- Support -- 16,183.62.
The Nifty Put Call Ratio (PCR) finally stood at (1.78) for August month contract. The top five scrips with highest PCR on Tata Chemicals (1.08), Kotak Mahindra Bank (0.92), Indusind Bank (0.80), PEL (0.79) and HDFC (0.79).
Among most active underlying, Tata Steel witnessed an addition of 1,430 units of Open Interest in the August month futures contract, Vedanta witnessed an addition of 2,121 units of Open Interest in the August month futures contract, Reliance Industries witnessed an addition of 1,295 units of Open Interest in the August month futures contract, JSPL witnessed an addition of 86 units of Open Interest in the August month futures contract and Bharti Airtel witnessed an addition of 253 units of Open Interest in the August month futures contract (Provisional).
