Indian equity benchmark -- Nifty -- ended with losses on Wednesday’s trading session. The start of the trading day was on a lower note, as worries came with Rating agency Crisil’s statement that States' indebtedness will remain high this fiscal at 33 per cent, which is only a notch below the record high of 34 per cent of their gross domestic products in FY21, as tax buoyancy will be offset by higher revenue expenditure and capital outlays. Traders ignored reports that Sebi approved frameworks for gold and social stock exchanges, and changes to delisting norms to make M&As more rational as well as to superior voting rights and various other proposals, mainly aimed at deepening the securities market.
Market remained weak during the trading session but managed to cut losses in the last hour of the trade, taking support with commerce and industry minister Piyush Goyal’s statement that measures to reduce compliance burden by simplifying and decriminalising several laws can have a multiplier effect on ease of doing business. Some support also came with rating agency Standard & Poor’s (S&P) statement that high-frequency indicators suggest a strong rebound during the July-September quarter after a steep contraction in activity in the previous three months on the back of a severe Covid-19 wave. The agency retained India’s economic growth projection at 9.5 per cent for the current fiscal year.
Most of the sectoral indices ended in green except Pvt Bank, Fin Service and Bank. The top gainers from the F&O segment were Tata Power, IEX and NTPC. On the other hand, the top losers were HDFCAMC, Info Edge and Metropolis Healthcare. 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 1.63% and reached 18.83. The 50 share Nifty down by 37.30 points or 0.21% to settle at 17,711.30.
Nifty September 2021 futures closed at 17710.35 (LTP) on Wednesday, at a discount of 0.95 points over spot closing of 17711.30, while Nifty October 2021 futures ended at 17741.00 (LTP), at a premium of 29.70 points over spot closing. Nifty September futures saw an addition of 5,044 units, taking the total outstanding open interest (OI) to 1,86,358 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 discount of 3.15 points at 2526.85 (LTP) compared with spot closing of 2530.00. The numbers of contracts traded were 35,635 (Provisional).
SBIN September 2021 futures traded at a discount of 0.95 points at 458.75 (LTP) compared with spot closing of 459.70. The numbers of contracts traded were 33,262 (Provisional).
HDFC Bank September 2021 futures traded at a premium of 3.75 points at 1598.60 (LTP) compared with spot closing of 1594.85. The numbers of contracts traded were 24,797 (Provisional).
Tata Steel September 2021 futures traded at a premium of 3.10 points at 1296.90 (LTP) compared with spot closing of 1293.80. The numbers of contracts traded were 24,414 (Provisional).
Infosys September 2021 futures traded at a discount of 4.30 points at 1684.25 (LTP) compared with spot closing of 1688.55. The numbers of contracts traded were 22,505 (Provisional).
Among, Nifty calls, 18000 SP from the September month expiry was the most active call with an addition of 30,234 units open interests. Among Nifty puts, 17600 SP from the September month expiry was the most active put with an addition of 24,225 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,89,877 units) and that for Puts was at 17000 SP (1,19,639 units). The respective Support and Resistance levels of Nifty are: Resistance 17,792.65 -- Pivot Point 17,700.40 -- Support -- 17,619.05.The Nifty Put Call Ratio (PCR) finally stood at (0.79) for September month contract. The top five scrips with highest PCR on IOC (1.11), Coal India (1.10), SRF (1.03), GMR Infra (1.01) and Tata Power (0.99).
Among most active underlying, Tata Steel witnessed an addition of 970 units of Open Interest in the September month futures contract, Infosys witnessed an addition of 3,503 units of Open Interest in the September month futures contract, SBIN witnessed an addition of 4,187 units of Open Interest in the September month futures contract, Reliance Industries witnessed a contraction of 5,361 units of Open Interest in the September month futures contract and HDFC Bank witnessed a contraction of 1,861 units of Open Interest in the September month futures contract (Provisional).
