The local benchmark -- Nifty -- ended the volatile day of trade near intraday high point on Tuesday. Market made negative start, as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai stated that bilateral trade between Afghanistan and India will get impacted significantly in these uncertain times. He said domestic exporters should follow caution looking into the political development in Afghanistan, particularly with regard to payments, for which adequate credit insurance may be availed by them. Further, market turned volatile, as foreign portfolio investors (FPIs) sold Rs 7,000 crore worth of equities in the secondary markets in the June quarter.
Traders were cautious, as private report stating that consumer confidence on financial preparedness for the future has dropped in the last two years with the onset of the coronavirus pandemic, even as the financial awareness and need for insurance has increased. However, in last leg of trade, market touched its intraday high point, as Retailers Association of India (RAI) said Retail sales across the country continued to recover in July, reaching 72 per cent of the pre-pandemic levels of July 2019, and businesses are pinning hopes on the festive seasons for a further boost. The rate of recovery was 50 per cent of pre-pandemic levels in June 2021.
Most of the sectoral indices ended in red except FMGC, IT and Pharma. The top gainers from the F&O segment were Apollo Hospitals, LTTS and SRF. On the other hand, the top losers were JSPL, Vedanta and Vodafone Idea. 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 0.42% and reached 13.52. The 50 share Nifty up by 51.55 points or 0.31% to settle at 16,614.60.
Nifty August 2021 futures closed at 16602.20 (LTP) on Tuesday, at a discount of 12.40 points over spot closing of 16614.60, while Nifty September 2021 futures ended at 16632.55 (LTP), at a premium of 17.95 points over spot closing. Nifty August futures saw a contraction of 1,564 units, taking the total open interest (contracts) to 2,67,793 units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, Vedanta August 2021 futures traded at a premium of 0.10 points at 298.05 (LTP) compared with spot closing of 297.95. The numbers of contracts traded were 60,173 (Provisional).
Adani Ports August 2021 futures traded at a premium of 0.95 points at 691.90 (LTP) compared with spot closing of 690.95. The numbers of contracts traded were 53,585 (Provisional).
Tata Steel August 2021 futures traded at a premium of 0.15 points at 1501.60 (LTP) compared with spot closing of 1501.45. The numbers of contracts traded were 35,781 (Provisional).
Apollo Hospitals Enterprise August 2021 futures traded at a premium of 1.80 points at 4903.55 (LTP) compared with spot closing of 4901.75. The numbers of contracts traded were 32,615 (Provisional).
Reliance Industries August 2021 futures traded at a discount of 1.95 points at 2161.05 (LTP) compared with spot closing of 2163.00. The numbers of contracts traded were 30,454 (Provisional).
Among, Nifty calls, 16800 SP from the August month expiry was the most active call with an addition of 3,091 units open interests. Among Nifty puts, 16500 SP from the August month expiry was the most active put with an addition of 10,760 units open interests. The maximum OI outstanding for Calls was at 17000 SP (41,062 units) and that for Puts was at 16000 SP (78,680 units). The respective Support and Resistance levels of Nifty are: Resistance 16,663.63 -- Pivot Point 16,579.52 --Support -- 16,530.48.
The Nifty Put Call Ratio (PCR) finally stood at (1.79) for August month contract. The top five scrips with highest PCR on Apollo Hospitals (1.47), TCS (1.11), Tata Chemicals (1.00), Infosys (0.89) and HDFC (0.89).
Among most active underlying, Vedanta witnessed an addition of 2,367 units of Open Interest in the August month futures contract, Adani Ports witnessed an addition of 24,315 units of Open Interest in the August month futures contract, Tata Steel witnessed a contraction of 370 units of Open Interest in the August month futures contract, Apollo Hospitals witnessed an addition of 3,465 units of Open Interest in the August month futures contract and TCS witnessed an addition of 1,945 units of Open Interest in the August month futures contract (Provisional).
