After spending most part of day in red zone, Nifty ended the last trading day of week marginally in green. Market made negative start with India Ratings and Research’s (IndRa) report stating that India Inc resorted to salary cuts to protect their profits in the June quarter, as revenues came under pressure due to the second pandemic wave that affected nearly the entire country. The weak wage growth will prove to be a drag on the overall economic recovery in the medium term as it will affect household consumption. Further, market turned volatile amid reports that with goods and services tax (GST) officers under pressure to exceed the Rs 1-trillion collection mark per month, industry has faced a barrage of recovery notices and summons issued over the last one month across sectors. Industry bodies have claimed harassment by field officers, blocking of input tax credit, cancellation of GST registration, threats of arrest and steep penalties, impacting their working capital and operations.
However, in last leg of trade market entered into green zone to end the session after S&P Global Ratings said India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated. It said the economy is expected to clock 9.5 per cent growth in the current fiscal year, followed by 7 per cent expansion in the next year.
Traders were seen piling positions in Auto, FMCG and IT sector while selling was witnessed in Private Bank, Realty and Pharma sector stocks. The top gainers from the F&O segment were Vodafone Idea, Coromandel International and ZEEL. On the other hand, the top losers were Canfin Home, ICICIPRULI and SBI Life. 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 3.24% and reached 13.94. The 50 share Nifty up by 15.75 points or 0.09% to settle at 17,369.25.
Nifty September 2021 futures closed at 17371.00 (LTP) on Thursday, at a premium of 1.75 points over spot closing of 17369.25, while Nifty October 2021 futures ended at 17397.00 (LTP), at a premium of 27.75 points over spot closing. Nifty September futures saw an addition of 3,583 units, taking the total open interest (Contracts) to 3,01,651 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 6.15 points at 2430.25 (LTP) compared with spot closing of 2424.10. The numbers of contracts traded were 18,787 (Provisional).
SBI Life September 2021 futures traded at a discount of 2.00 points at 1172.00 (LTP) compared with spot closing of 1174.00. The numbers of contracts traded were 18,686 (Provisional).
Bharti Airtel September 2021 futures traded at a premium of 1.65 points at 687.10 (LTP) compared with spot closing of 685.45. The numbers of contracts traded were 17,181 (Provisional).
Kotak Mahindra Bank September 2021 futures traded at a premium of 1.75 points at 1819.75 (LTP) compared with spot closing of 1818.00. The numbers of contracts traded were 16,999 (Provisional).
Tata Motors September 2021 futures traded at a premium of 0.05 points at 298.45 (LTP) compared with spot closing of 298.40. The numbers of contracts traded were 15,480 (Provisional).
Among, Nifty calls, 17400 SP from the September month expiry was the most active call with an addition of 795 units open interests. Among Nifty puts, 17300 SP from the September month expiry was the most active put with an addition of 3,413 units open interests. The maximum OI outstanding for Calls was at 17500 SP (36,416 units) and that for Puts was at 17000 SP (85,003 units). The respective Support and Resistance levels of Nifty are: Resistance 17,398.37 -- Pivot Point 17,350.53 -- Support -- 17,321.42.
The Nifty Put Call Ratio (PCR) finally stood at (1.56) for September month contract. The top five scrips with highest PCR on Titan Company (0.91), Havells (0.86), IRCTC (0.83), Vedanta (0.78) and Voltas (0.77).
Among most active underlying, Bharti Airtel witnessed an addition of 2,696 units of Open Interest in the September month futures contract, SBI Life witnessed an addition of 7,657 units of Open Interest in the September month futures contract, Tata Steel witnessed a contraction of 367 units of Open Interest in the September month futures contract, Tata Motors witnessed an addition of 1,463 units of Open Interest in the September month futures contract and Kotak Mahindra Bank witnessed an addition of 661 units of Open Interest in the September month futures contract (Provisional).
