Nifty snapped three day winning streak on Friday. Market made optimistic start with the RBI’s latest article stating that prospects are brightening for the Indian economy achieving ‘escape velocity’ from the pandemic as the second wave of COVID-19 wanes and preparedness for future remains on war-alert status. It said aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery. Further, market turned volatile even after Finance Minister Nirmala Sitharaman stated that the Union Cabinet has cleared a proposal to provide Rs 30,600 crore government guarantee for security receipts issued by the National Asset Reconstruction Company (NARCL) as part of resolution of bad loans. In last leg of trade, index extended its losses to end the session in red.
Most of the sectoral indices ended in red except Bank, Media and Private Bank. The top gainers from the F&O segment were ZEEL, INDIGO and Kotak Mahindra Bank. On the other hand, the top losers were Bank of Baroda, PNB and IBULHSGFIN. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -17150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 5.68% and reached 15.23. The 50 share Nifty down by 44.35 points or 0.25% to settle at 17,585.15.
Nifty September 2021 futures closed at 17605.00 (LTP) on Friday, at a premium of 19.85 points over spot closing of 17585.15, while Nifty October 2021 futures ended at 17635.50 (LTP), at a premium of 50.35 points over spot closing. Nifty September futures saw an addition of 6,681 units, taking the total open interest (Contracts) to 2,97,462 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 9.80 points at 2396.80 (LTP) compared with spot closing of 2387.00. The numbers of contracts traded were 64,606 (Provisional).
Kotak Mahindra Bank September 2021 futures traded at a discount of 7.50 points at 2006.60 (LTP) compared with spot closing of 2014.10. The numbers of contracts traded were 45,001 (Provisional).
SBIN September 2021 futures traded at a premium of 0.75 points at 454.00 (LTP) compared with spot closing of 453.25. The numbers of contracts traded were 38,303 (Provisional).
ITC September 2021 futures traded at a premium of 0.65 points at 232.15 (LTP) compared with spot closing of 231.50. The numbers of contracts traded were 36,835 (Provisional).
Bajaj Finance September 2021 futures traded at a premium of 26.45 points at 7468.45 (LTP) compared with spot closing of 7442.00. The numbers of contracts traded were 35,962 (Provisional).
Among, Nifty calls, 17700 SP from the September month expiry was the most active call with an addition of 7,941 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 1,966 units open interests. The maximum OI outstanding for Calls was at 18000 SP (33,448 units) and that for Puts was at 17000 SP (65,361 units). The respective Support and Resistance levels of Nifty are: Resistance 17,739.52 -- Pivot Point 17,638.58 -- Support -- 17,484.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.49) for September month contract. The top five scrips with highest PCR on Kotak Mahindra Bank (0.94), ZEEL (0.94), Havells (0.92), Voltas (0.91) and SRF (0.82).
Among most active underlying, Reliance Industries witnessed an addition of 4,593 units of Open Interest in the September month futures contract, Tata Steel witnessed an addition of 4,580 units of Open Interest in the September month futures contract, Kotak Mahindra Bank witnessed an addition of 4,814 units of Open Interest in the September month futures contract, Bajaj Finance witnessed an addition of 2,105 units of Open Interest in the September month futures contract and IRCTC witnessed an addition of 3,045 units of Open Interest in the September month futures contract (Provisional).
