The local benchmark -- Nifty -- ended the session in green on Tuesday. Market made a positive start, as the government data showed that India's retail inflation in August marginally eased to 5.3%, staying within Reserve Bank of India's comfort zone for a second month. Inflation in the food basket was 3.11% in August compared to 3.96% in the preceding month. Market maintained its gains in green zone with India Ratings and Research’s report stated that inflation rates are expected to decline till at least November this year. The retail inflation in August 2021 declined both sequentially and on a year-over-year basis to 5.30 per cent. The strong base effect resulted in the decline in retail inflation. It is the seventh consecutive month of retail inflation remaining in excess of 5 per cent and the 23rd consecutive month of retail inflation remaining in excess of RBI's targeted inflation rate of 4 per cent. In late afternoon trade, market trimmed some of its gains but managed to end above neutral line after Commerce and Industry Minister Piyush Goyal has confirmed that India and the UK are moving towards an early harvest trade agreement, with a comprehensive free trade agreement (FTA) the next step.
Most of the sectoral indices ended in green except FMCG, Metal and Financial Services. The top gainers from the F&O segment were Vodafone Idea, ZEEL and IRCTC. On the other hand, the top losers were ICICI Lombard General Insurance, National Aluminium Company and Marico. In the index option segment, maximum OI continues to be seen in the 17300 -17600 calls and 16300 -16650 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.20% and reached 13.58. The 50 share Nifty up by 24.70 points or 0.14% to settle at 17,380.00.
Nifty September 2021 futures closed at 17387.00 (LTP) on Tuesday, at a premium of 7.00 points over spot closing of 17380.00, while Nifty October 2021 futures ended at 17415.00 (LTP), at a premium of 35.00 points over spot closing. Nifty September futures saw an addition of 6,223 units, taking the total open interest (OI) to 2,95,367 units. The near month derivatives contract will expire on September 30, 2021(Provisional).
From the most active contracts, ZEEL September 2021 futures traded at a premium of 0.55 points at 262.25 (LTP) compared with spot closing of 261.70. The numbers of contracts traded were 84,863 (Provisional).
IRCTC September 2021 futures traded at a premium of 2.00 points at 3725.00 (LTP) compared with spot closing of 3723.00. The numbers of contracts traded were 26,683 (Provisional).
Kotak Mahindra Bank September 2021 futures traded at a premium of 0.90 points at 1865.90 (LTP) compared with spot closing of 1865.00. The numbers of contracts traded were 20,158 (Provisional).
Escorts September 2021 futures traded at a premium of 4.10 points at 1466.00 (LTP) compared with spot closing of 1461.90. The numbers of contracts traded were 17,056 (Provisional).
Reliance Industries September 2021 futures traded at a premium of 6.35 points at 2376.85 (LTP) compared with spot closing of 2370.50. The numbers of contracts traded were 16,684 (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 17,423.35 -- Pivot Point 17,395.20 -- Support -- 17,351.85
The Nifty Put Call Ratio (PCR) finally stood at (1.50) for September month contract. The top five scrips with highest PCR on ZEEL (1.21), IRCTC (0.99), Havells (0.90), TCS (0.88) and Titan Company (0.88).
Among most active underlying, ZEEL witnessed an addition of 4,109 units of Open Interest in the September month futures contract, IRCTC witnessed an addition of 2,340 units of Open Interest in the September month futures contract, Adani Enterprises witnessed an addition of 1,899 units of Open Interest in the September month futures contract, Kotak Mahindra Bank witnessed an addition of 995 units of Open Interest in the September month futures contract and Tata Steel witnessed an addition of 369 units of Open Interest in the September month futures contract (Provisional).
