Indian equity benchmark --Nifty --exhibited good performance and ended Friday’s trade at record closing high. Market made a positive start, as retail inflation eased to a three-month low of 5.59 per cent in July, mainly due to softening food prices, after holding above 6% for two months in a row. The Consumer Price Index (CPI) based inflation was 6.26 per cent in June and 6.73 per cent in July 2020.
Index continued the gaining momentum during the day, after National Statistical Office (NSO) reported that manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), grew by 13 per cent in June this year due to a low-base effect and good performance by manufacturing, mining and power sectors. In late afternoon session, market extended its gains to touch intraday high point.
Traders also got some support, as Commerce and Industry Minister Piyush Goyal assured the industry that the government will protect its interests in free trade agreements (FTAs) and these pacts would be finalised after holding detailed discussions with all the stakeholders. Finally, Nifty finished the trading session with the gains of above a percent.
Most of the sectoral indices ended in green except Auto, Media and Pharma. The top gainers from the F&O segment were Tata Consumer Products, TCS and Cadila Healthcare. On the other hand, the top losers were Vodafone Idea, Page Industries and Aurobindo Pharma. In the index option segment, maximum OI continues to be seen in the 16800 -17200 calls and 15800 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 4.99% and reached 12.99. The 50 share Nifty up by 164.70 points or 1.01% to settle at 16,529.10.
Nifty August 2021 futures closed at 16518.00 on Friday, at a discount of 11.10 points over spot closing of 16529.10, while Nifty September 2021 futures ended at 16551.95, at a premium of 22.85 points over spot closing. Nifty August futures saw an addition of 18,467 units, taking the total outstanding open interest (OI) to 2,78,230 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 5.75 points at 1473.00 (LTP) compared with spot closing of 1467.25. The numbers of contracts traded were 63,457(Provisional).
Aurobindo Pharma August 2021 futures traded at a discount of 0.75 points at 759.25 (LTP) compared with spot closing of 760.00. The numbers of contracts traded were 35,388(Provisional).
Reliance Industries August 2021 futures traded at a premium of 1.00 points at 2144.00 (LTP) compared with spot closing of 2143.00. The numbers of contracts traded were 35,162 (Provisional).
TCS August 2021 futures traded at a premium of 3.15 points at 3459.20 (LTP) compared with spot closing of 3456.05. The numbers of contracts traded were 18,422 (Provisional).
SBIN August 2021 futures traded at a premium of 0.65 points at 431.40 (LTP) compared with spot closing of 430.75. The numbers of contracts traded were 18,108 (Provisional).
Among, Nifty calls, 16600 SP from the August month expiry was the most active call with an addition of 1,183 units open interests. Among Nifty puts, 16400 SP from the August month expiry was the most active put with an addition of 21,384 units open interests. The maximum OI outstanding for Calls was at 17000 SP (30,637 units) and that for Puts was at 16000 SP (71,207 units). The respective Support and Resistance levels of Nifty are: Resistance 16,589.70 -- Pivot Point 16,483.00 -- Support -- 16,422.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.82) for August month contract. The top five scrips with highest PCR on Tata Chemicals (1.17), TCS (1.01), Infosys (0.89), Kotak Mahindra Bank (0.86) and HDFC (0.86).
Among most active underlying, Tata Steel witnessed an addition of 2,253 units of Open Interest in the August month futures contract, Bharti Airtel witnessed an addition of 2,165 units of Open Interest in the August month futures contract, TCS witnessed an addition of 2,475 units of Open Interest in the August month futures contract, Reliance Industries witnessed an addition of 534 units of Open Interest in the August month futures contract and Aurobindo Pharma witnessed an addition of 851 units of Open Interest in the August month futures contract (Provisional).
