S&P CNX -- Nifty ended day’s trade on flat note. Market made cautious start and turned volatile, as Fitch Ratings said India continues to lag way behind in COVID vaccination, and the negative outlook on sovereign rating signifies the rising debt-to-GDP ratio. In April 2021, Fitch affirmed India's sovereign rating at 'BBB-' with a negative outlook. The outlook was changed to 'negative' from 'stable' in June last year on grounds that the pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public-debt burden. Further, in afternoon session, market extended its losses to touch intraday low point even after survey report stating that notwithstanding the COVID-19 second wave hitting the nation hard, Indian organisations have displayed resilience, and the salary increment is being projected to grow from an average of 8.8 per cent this year to an estimated average of 9.4 per cent in 2022. In last leg of trade, index trimmed most of its losses and ended the session near neutral line with negative bias.
Traders were seen piling positions in Bankex, Metal and Oil & Gas sector while selling was witnessed in Auto, FMCG and IT sector stocks. The top gainers from the F&O segment were Info Edge (India), HDFCAMC and REC. On the other hand, the top losers were Indus Tower, Navin Fluorine International and Vedanta. 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 3.25% and reached 14.41. The 50 share Nifty down by 8.60 points or 0.05% to settle at 17,353.50.
Nifty September 2021 futures closed at 17386.25 (LTP) on Wednesday, at a premium of 32.75 points over spot closing of 17353.50, while Nifty October 2021 futures ended at 17410.00 (LTP), at a premium of 56.50 points over spot closing. Nifty September futures saw an addition of 2,635 units, taking the total outstanding open interest (Contracts) to 3,02,231 units. The near month derivatives contract will expire on September 30, 2021 (Provisional).
From the most active contracts, Kotak Mahindra Bank September 2021 futures traded at a premium of 6.65 points at 1834.45 (LTP) compared with spot closing of 1827.80. The numbers of contracts traded were 32,532 (Provisional).
Reliance Industries September 2021 futures traded at a premium of 6.65 points at 2436.65 (LTP) compared with spot closing of 2430.00. The numbers of contracts traded were 26,179 (Provisional).
IRCTC September 2021 futures traded at a premium of 1.35 points at 3273.35 (LTP) compared with spot closing of 3272.00. The numbers of contracts traded were 20,610 (Provisional).
Bharti Airtel September 2021 futures traded at a premium of 2.50 points at 670.50 (LTP) compared with spot closing of 668.00. The numbers of contracts traded were 20,255 (Provisional).
SBIN September 2021 futures traded at a premium of 1.80 points at 433.50 (LTP) compared with spot closing of 431.70. The numbers of contracts traded were 19,932 (Provisional).
Among, Nifty calls, 17400 SP from the September month expiry was the most active call with an addition of 615 units open interests. Among Nifty puts, 17300 SP from the September month expiry was the most active put with an addition of 3,224 units open interests. The maximum OI outstanding for Calls was at 17500 SP (35,718 units) and that for Puts was at 17000 SP (82,921 units). The respective Support and Resistance levels of Nifty are: Resistance 17,406.53 -- Pivot Point 17,330.37 -- Support -- 17,277.33.
The Nifty Put Call Ratio (PCR) finally stood at (1.57) for September month contract. The top five scrips with highest PCR on Titan Company (0.86), SRF (0.83), Havells (0.81), RBL Bank (0.80) and IRCTC (0.79).
Among most active underlying, Bharti Airtel witnessed a contraction of 175 units of Open Interest in the September month futures contract, Kotak Mahindra Bank witnessed an addition of 4,873 units of Open Interest in the September month futures contract, IRCTC witnessed an addition of 1,092 units of Open Interest in the September month futures contract, Reliance Industries witnessed an addition of 2,328 units of Open Interest in the September month futures contract and SBIN witnessed an addition of 331 units of Open Interest in the September month futures contract (Provisional).
