Nifty ended the Monday’s session lower. Market made negative start, as a periodic labour force survey by the National Statistical Office (NSO) showed that unemployment rate for all ages in urban areas rose to 10.3 per cent in October-December 2020 as compared to 7.9 per cent in the corresponding months a year ago. Further, market added more losses, as India Ratings and Research (Ind-Ra) has said that salaried and wages earners will be a drag on overall economic recovery in medium term due to tepid recovery of household consumption. It said that an environment of pandemic-led uncertainty and elevated inflation can impact the level of spending, and hence the overall demand. In late afternoon session, market trimmed most of its losses but continued its trade below neutral line even after industry body Assocham in its latest report has said that there are signs of improved consumer confidence in several key sectors, including hospitality, of the economy. It also noted that activities in construction and renovation have been on a pick-up for the past few months leading to return of migrant workers for gainful deployment.
Traders were seen piling positions in Media, FMCG and IT sector while selling was witnessed in PSU Bank, Bank and Financial services sector stocks. The top gainers from the F&O segment were Coal India, Hindalco Industries and Kotak Mahindra Bank. On the other hand, the top losers were SBI Life, ICICI Bank and Reliance Industries. 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 increased by 0.59% and reached 14.03. The 50 share Nifty down by 13.95 points or 0.08% to settle at 17,355.30.
Nifty September 2021 futures closed at 17362.00 (LTP) on Monday, at a premium of 6.70 points over spot closing of 17355.30, while Nifty October 2021 futures ended at 17389.00 (LTP), at a premium of 33.70 points over spot closing. Nifty September futures saw an addition of 4,782 units, taking the total open interest (OI) to 3,00,237 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 6.40 points at 2376.20 (LTP) compared with spot closing of 2369.80. The numbers of contracts traded were 31,281 (Provisional).
Tata Steel September 2021 futures traded at a premium of 5.00 points at 1475.00 (LTP) compared with spot closing of 1470.00. The numbers of contracts traded were 15,075 (Provisional).
Bharti Airtel September 2021 futures traded at a discount of 0.25 points at 691.25 (LTP) compared with spot closing of 691.50. The numbers of contracts traded were 14,869 (Provisional).
Kotak Mahindra Bank September 2021 futures traded at a premium of 0.80 points at 1849.80 (LTP) compared with spot closing of 1849.00. The numbers of contracts traded were 14,715 (Provisional).
Hindalco Industries September 2021 futures traded at a premium of 0.30 points at 479.00 (LTP) compared with spot closing of 478.70. The numbers of contracts traded were 10,312 (Provisional).
Among, Nifty calls, 17400 SP from the September month expiry was the most active call with an addition of 986 units open interests. Among Nifty puts, 17300 SP from the September month expiry was the most active put with an addition of 4,596 units open interests. The maximum OI outstanding for Calls was at 17500 SP (35,012 units) and that for Puts was at 17000 SP (80,826 units). The respective Support and Resistance levels of Nifty are: Resistance 17,399.38 -- Pivot Point 17,334.27 -- Support -- 17,290.18
The Nifty Put Call Ratio (PCR) finally stood at (1.52) for September month contract. The top five scrips with highest PCR on IRCTC (0.95), SRF (0.87), Titan Company (0.87), Havells (0.82) and Voltas (0.81).
Among most active underlying, Bharti Airtel witnessed an addition of 1,302 units of Open Interest in the September month futures contract, Tata Steel witnessed an addition of 1,727 units of Open Interest in the September month futures contract, Reliance Industries witnessed an addition of 2,829 units of Open Interest in the September month futures contract, Kotak Mahindra Bank witnessed an addition of 1,138 units of Open Interest in the September month futures contract and Hindalco Industries witnessed an addition of 1,414 units of Open Interest in the September month futures contract (Provisional).
