Indian equity benchmark -- Nifty -- ended Wednesday’s session on a flat note. Market made a positive start, as Minister of State of Commerce and Industry Anupriya Patel said India is likely to record exports worth $46 billion to the ASEAN region. She noted that as one of the largest destinations for Indian exports, the Association of South East Asian Nations will be an important region for India in meeting the global export target of $400 billion in financial year 2021-22.
Index continued its trade in green zone for the most part of the trading session, taking support with Chief financial advisor (CEA) Krishnamurthy V Subramanian’s statement that India is well-poised to climate the ripple impact of taper tantrum if the US Federal Reserve begins to cut back its $120-billion-a-month quantitative easing later this year. In last leg of trade, market trimmed most of its gains but managed to end in green terrain. Some comfort also came with private report stating that India has overtaken the United States (US) to become the second-most sought-after manufacturing destination globally, driven mainly by cost competitiveness.
Most of the sectoral indices ended in red except IT, Metal and FMGC. The top gainers from the F&O segment were Escorts, Adani Ports and Hindustan Petroleum Corporation. On the other hand, the top losers were Bajaj Finserv, Canara Bank and Havells. In the index option segment, maximum OI continues to be seen in the 16650 -16800 calls and 16400 -16600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.35% and reached 13.50. The 50 share Nifty up by 10.05 points or 0.06% to settle at 16,634.65.
Nifty August 2021 futures closed at 16635.00 (LTP) on Wednesday, at a premium of 0.35 points over spot closing of 16634.65, while Nifty September 2021 futures ended at 16667.60 (LTP), at a premium of 32.95 points over spot closing. Nifty August futures saw a contraction of 7,907 units, taking the total open interest (Contracts) to 1,47,468 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 premium of 3.95 points at 2204.95 (LTP) compared with spot closing of 2201.00. The numbers of contracts traded were 45,552 (Provisional).
Tata Steel August 2021 futures traded at a discount of 1.45 points at 1389.15 (LTP) compared with spot closing of 1390.60. The numbers of contracts traded were 19,936 (Provisional).
SBIN August 2021 futures traded at a premium of 0.05 points at 416.20 (LTP) compared with spot closing of 416.15. The numbers of contracts traded were 19,787 (Provisional).
Adani Ports August 2021 futures traded at a premium of 0.50 points at 721.60 (LTP) compared with spot closing of 721.10. The numbers of contracts traded were 19,558 (Provisional).
ICICI Bank August 2021 futures traded at a premium of 1.05 points at 690.75 (LTP) compared with spot closing of 689.70. The numbers of contracts traded were 17,850 (Provisional).
Among, Nifty calls, 16700 SP from the August month expiry was the most active call with an addition of 43,358 units open interests. Among Nifty puts, 16600 SP from the August month expiry was the most active put with an addition of 29,849 units open interests. The maximum OI outstanding for Calls was at 16700 SP (1,36,665 units) and that for Puts was at 16500 SP (1,44,405 units). The respective Support and Resistance levels of Nifty are: Resistance 16,692.23 -- Pivot Point 16,654.87 -- Support -- 16,597.28.
The Nifty Put Call Ratio (PCR) finally stood at (1.14) for August month contract. The top five scrips with highest PCR on Tech Mahindra (1.18), HUL (1.17), TCS (1.11), Bajaj Finance (1.08) and Tata Consumer Products (1.02).
Among most active underlying, Reliance Industries witnessed an addition of 3,929 units of Open Interest in the August month futures contract, Tata Steel witnessed an addition of 530 units of Open Interest in the August month futures contract, Adani Enterprises witnessed an addition of 115 units of Open Interest in the August month futures contract, Adani Ports witnessed an addition of 37 units of Open Interest in the August month futures contract and ICICI Bank witnessed an addition of 1,254 units of Open Interest in the August month futures contract (Provisional).
