Nifty snapped two day losing streak on Monday. Market made positive start, as investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months. Further, market entered into red zone for little time and soon bounce back into green, as foreign portfolio investors (FPI) have pumped in a net Rs 7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment. Some support also came with private report that the government said that the country’s agri-exports are estimated to grow 15% in FY22, adding that export of products like rice, meat, cereals and dairy items rose 44.3% on-year to $4.81 billion during April-June 2021. Their exports were $3.33 billion in the year ago period. Market maintained its gains till the end of the session as additional optimism also came after Retirement fund body, Employee' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1283448 new jobs in the month of June 2021.
Most of the sectoral indices ended in red except Bank, IT and Oil and Gas. The top gainers from the F&O segment were Escorts, Mindtree and HCL Tech. On the other hand, the top losers were Jubilant FoodWorks, Bandhan Bank and Biocon. In the index option segment, maximum OI continues to be seen in the 16400 -16700 calls and 16400 -16650 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.35% and reached 13.69. The 50 share Nifty up by 45.95 points or 0.28% to settle at 16,496.45.
Nifty August 2021 futures closed at 16493.35 (LTP) on Monday, at a discount of 3.10 points over spot closing of 16496.45, while Nifty September 2021 futures ended at 16528.00 (LTP), at a premium of 31.55 points over spot closing. Nifty August futures saw a contraction of 8,827 units, taking the total open interest (Contracts) to 2,08,738 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 discount of 2.25 points at 2158.90 (LTP) compared with spot closing of 2161.15. The numbers of contracts traded were 46,784 (Provisional).
Tata Steel August 2021 futures traded at a discount of 1.25 points at 1361.05 (LTP) compared with spot closing of 1362.30. The numbers of contracts traded were 44,395 (Provisional).
SBIN August 2021 futures traded at a premium of 0.05 points at 408.65 (LTP) compared with spot closing of 408.60. The numbers of contracts traded were 28,805 (Provisional).
Bharti Airtel August 2021 futures traded at a discount of 0.55 points at 621.90 (LTP) compared with spot closing of 622.45. The numbers of contracts traded were 24,872 (Provisional).
HDFC Bank August 2021 futures traded at a premium of 1.60 points at 1524.50 (LTP) compared with spot closing of 1522.90. The numbers of contracts traded were 21,079 (Provisional).
Among, Nifty calls, 16600 SP from the August month expiry was the most active call with an addition of 25,244 units open interests. Among Nifty puts, 16500 SP from the August month expiry was the most active put with an addition of 22,974 units open interests. The maximum OI outstanding for Calls was at 16600 SP (1,13,344 units) and that for Puts was at 16500 SP (93,644 units). The respective Support and Resistance levels of Nifty are: Resistance 16,594.07 -- Pivot Point 16,494.88 -- Support -- 16,397.27.
The Nifty Put Call Ratio (PCR) finally stood at (0.98) for August month contract. The top five scrips with highest PCR on TCS (1.05), Bajaj Finance (0.93), HUL (0.92),Mindtree (0.85) and Infosys (0.84).
Among most active underlying, Tata Steel witnessed a contraction of 510 units of Open Interest in the August month futures contract, Bharti Airtel witnessed a contraction of 1,775 units of Open Interest in the August month futures contract, Reliance Industries witnessed an addition of 5,250 units of Open Interest in the August month futures contract, TCS witnessed an addition of 3,134 units of Open Interest in the August month futures contract and ICICI Bank witnessed an addition of 3,754 units of Open Interest in the August month futures contract (Provisional).
