Nifty ends in red zone

Nifty – finished Tuesday’s session in red zone. Market made cautions start and entered into red zone, as a private report projected a real gross value added (GVA) growth of 7 to 8 per cent year-on-year in the second quarter of current fiscal year versus 20.1 per cent growth in Q1 FY22. It said estimates suggest some moderation in economic activity index (EAI)-GVA growth in July, largely on account of weaker fiscal spending. However, in afternoon session, index erased all its losses to trade in the positive zone with RBI data report that sales of 1,647 listed private manufacturing companies recorded ‘extraordinarily high’ growth of 75 per cent in the first quarter of FY'22 mainly due to a very low base in the pandemic-hit year-ago period. But, in last leg of trade, market slipped into the negative terrain to end the session. Finally, Nifty ended day’s trade marginally lower.

Most of the sectoral indices ended in red except FMCG, Financial Services and Consumer Durables. The top gainers from the F&O segment were Vodafone Idea, IRCTC and Indus Tower. On the other hand, the top losers were Apollo Hospitals Enterprise, DLF and National Aluminium Company. In the index option segment, maximum OI continues to be seen in the 17350 -17600 calls and 16800 -17200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.39% and reached 14.90. The 50 share Nifty down by 15.70 points or 0.09% to settle at 17,362.10.

Nifty September 2021 futures closed at 17369.25 (LTP) on Tuesday, at a premium of 7.15 points over spot closing of 17362.10, while Nifty October 2021 futures ended at 17401.10 (LTP), at a premium of 39.00 points over spot closing. Nifty September futures saw an addition of 7,890 units, taking the total open interest (Contracts) to 3,07,092 units. The near month derivatives contract will expire on September 30, 2021 (Provisional).

From the most active contracts, Reliance Industries September 2021 futures traded at a premium of 4.80 points at 2443.80 (LTP) compared with spot closing of 2439.00. The numbers of contracts traded were 38,782 (Provisional).

Bharti Airtel September 2021 futures traded at a premium of 2.65 points at 674.40 (LTP) compared with spot closing of 671.75. The numbers of contracts traded were 28,249 (Provisional).

IRCTC September 2021 futures traded at a discount of 7.80 points at 3288.10 (LTP) compared with spot closing of 3295.90. The numbers of contracts traded were 26,561 (Provisional).

Voltas September 2021 futures traded at a premium of 4.40 points at 1186.65 (LTP) compared with spot closing of 1182.25. The numbers of contracts traded were 19,472 (Provisional).

ITC September 2021 futures traded at a premium of 0.60 points at 212.45 (LTP) compared with spot closing of 211.85. The numbers of contracts traded were 18,570 (Provisional).

Among, Nifty calls, 17400 SP from the September month expiry was the most active call with an addition of 2,812 units open interests. Among Nifty puts, 17300 SP from the September month expiry was the most active put with an addition of 718 units open interests. The maximum OI outstanding for Calls was at 17500 SP (35,417 units) and that for Puts was at 17000 SP (71,908 units). The respective Support and Resistance levels of Nifty are: Resistance 17,436.73 -- Pivot Point 17,361.87 -- Support -- 17,287.23.

The Nifty Put Call Ratio (PCR) finally stood at (1.53) for September month contract. The top five scrips with highest PCR on Havells (0.91), Titan Company (0.87), TCS (0.86), Wipro (0.78) and SRF (0.78).

Among most active underlying, Bharti Airtel witnessed an addition of 2,492 units of Open Interest in the September month futures contract, IRCTC witnessed an addition of 1,478 units of Open Interest in the September month futures contract, Reliance Industries witnessed an addition of 1,243 units of Open Interest in the September month futures contract, Tata Steel witnessed an addition of 1,073 units of Open Interest in the September month futures contract and HDFC witnessed an addition of 910 units of Open Interest in the September month futures contract (Provisional).