Indian benchmark -- Nifty – ended the session lower for second day. Market made negative start, as traders were cautious with the labour ministry’s statement that retail inflation for farm workers and rural labourers rise marginally to 3.92 per cent and 4.09 per cent in July, as compared to the previous month. The numbers in June had stood at 3.83 per cent and 4 per cent, respectively. Market continued weak run, as industry body FIEO said that bilateral trade with Afghanistan has been impacted and Indian exporters are concerned about their payments as banking services and remittances may face restrictions due to the ongoing situation in that country. Traders ignored report that that Union Commerce and Industry Minister Piyush Goyal has said exports have reached nearly $15 billion for the first half of August, after posting the highest-ever monthly performance in July at $35 billion. He said “It will be a record-breaking year for exports. Exports are engaging with new products, new services, new markets and the world is looking at India as a trusted partner”. Market extended downside till the end of the session and ended with the cut of above half a percent.
Most of the sectoral indices ended in red except FMGC. The top gainers from the F&O segment were HUL, Mindtree and Britannia Industries. On the other hand, the top losers were Tata Steel, Vedanta and NMDC. In the index option segment, maximum OI continues to be seen in the 16400 -16700 calls and 15400 -15650 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 8.60% and reached 14.02. The 50 share Nifty down by 118.35 points or 0.71% to settle at 16,450.50.
Nifty August 2021 futures closed at 16420.00 (LTP) on Friday, at a discount of 30.50 points over spot closing of 16450.50, while Nifty September 2021 futures ended at 16455.00 (LTP), at a premium of 4.50 points over spot closing. Nifty August futures saw a contraction 6,823 units, taking the total open interest (Contracts) to 2,45,259 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 0.30 points at 1368.00 (LTP) compared with spot closing of 1367.70. The numbers of contracts traded were 46,679 (Provisional).
Reliance Industries August 2021 futures traded at a discount of 0.10 points at 2140.00 (LTP) compared with spot closing of 2140.10. The numbers of contracts traded were 34,033 (Provisional).
SBIN August 2021 futures traded at a discount of 0.60 points at 405.40 (LTP) compared with spot closing of 406.00. The numbers of contracts traded were 27,841 (Provisional).
Bajaj Finance August 2021 futures traded at a discount of 8.75 points at 6628.25 (LTP) compared with spot closing of 6637.00. The numbers of contracts traded were 22,389 (Provisional).
Bharti Airtel August 2021 futures traded at a premium of 1.30 points at 611.45 (LTP) compared with spot closing of 610.15. The numbers of contracts traded were 19,002 (Provisional).
Among, Nifty calls, 16500 SP from the August month expiry was the most active call with an addition of 52,911 units open interests. Among Nifty puts, 16400 SP from the August month expiry was the most active put with an addition of 28,825 units open interests. The maximum OI outstanding for Calls was at 16500 SP (1,05,229 units) and that for Puts was at 15500 SP (1,11,036 units). The respective Support and Resistance levels of Nifty are: Resistance 16,514.68 -- Pivot Point 16,445.37 -- Support -- 16,381.18.
The Nifty Put Call Ratio (PCR) finally stood at (1.07) for August month contract. The top five scrips with highest PCR on HUL (0.98), TCS (0.97), Bajaj Finance (0.88), Tata Chemicals (0.85) and Tata Consumer Products (0.83).
Among most active underlying, Tata Steel witnessed an addition of 4,604 units of Open Interest in the August month futures contract, Bharti Airtel witnessed an addition of 464 units of Open Interest in the August month futures contract, Bajaj Finance witnessed an addition of 1,955 units of Open Interest in the August month futures contract, Reliance Industries witnessed an addition of 1,515 units of Open Interest in the August month futures contract and SBIN witnessed an addition of 3,110 units of Open Interest in the August month futures contract (Provisional).
