Indian equity benchmark -- Nifty -- gave powerful performance for second straight session on Tuesday. Market made a negative start, as ICRA Ratings’ report stated that total infrastructure credit by banks and NBFC-Infrastructure Finance Companies (NBFC-IFCs) remained sluggish in the first quarter of the current fiscal (Q1FY22) due to the disruptions caused by the second wave of the COVID-19 pandemic. Market was volatile mainly due to negative cues from Wall Street overnight, with investors concerned that the regulatory crackdowns and a collapse at China Evergrande could hurt an already fragile Chinese economy.
However, rally in IT, Oil & Gas sector stocks and Reliance Industries in the second half of the trading session helped the market to gain momentum. Market traded higher till the end of the session, as services sector activity in India continued to remain strong in September despite a small fall from August. Strong domestic demand, along with international orders helped the sector as Covid-19 restrictions eased. Indian companies continued to benefit from a recovery in demand as the pandemic receded further and restrictions were lifted. The improved market environment meant that companies managed to secure new work and increase business activity during September. Finally, Nifty ended the session with the gains of above half a percent.
Most of the sectoral indices ended in green except FMCG, Metal and Pharma. The top gainers from the F&O segment were ONGC, Tata power and Aditya Birla Fashion and Retail. On the other hand, the top losers were Dalmia Bharat, Oberoi Realty and India Cements. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -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 2.01% and reached 16.40. The 50 share Nifty up by 131.05 points or 0.74% to settle at 17,822.30.
Nifty October 2021 futures closed at 17837.05 (LTP) on Tuesday, at a premium of 14.75 points over spot closing of 17822.30, while Nifty November 2021 futures ended at 17862.00 (LTP), at a premium of 39.70 points over spot closing. Nifty October futures saw an addition of 4,611 units, taking the total open interest (Contracts) to 2,47,261 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active contracts, Reliance Industries October 2021 futures traded at a premium of 8.70 points at 2618.95 (LTP) compared with spot closing of 2610.25. The numbers of contracts traded were 37,703 (Provisional).
Tata power October 2021 futures traded at a premium of 0.75 points at 180.40 (LTP) compared with spot closing of 179.65. The numbers of contracts traded were 24,524 (Provisional).
Bharti Airtel October 2021 futures traded at a premium of 0.95 points at 700.45 (LTP) compared with spot closing of 699.50. The numbers of contracts traded were 19,264 (Provisional).
SBIN October 2021 futures traded at a premium of 1.70 points at 465.40 (LTP) compared with spot closing of 463.70. The numbers of contracts traded were 18,378 (Provisional).
IRCTC October 2021 futures traded at a premium of 15.60 points at 4170.25 (LTP) compared with spot closing of 4154.65. The numbers of contracts traded were 17,251 (Provisional).
Among, Nifty calls, 18000 SP from the October month expiry was the most active call with an addition of 1,854 units open interests. Among Nifty puts, 17500 SP from the October month expiry was the most active put with an addition of 3,371 units open interests. The maximum OI outstanding for Calls was at 18000 SP (45,606 units) and that for Puts was at 17000 SP (64,980 units). The respective Support and Resistance levels of Nifty are: Resistance 17,890.20 -- Pivot Point 17,765.55 -- Support -- 17,697.65.
The Nifty Put Call Ratio (PCR) finally stood at (1.42) for October month contract. The top five scrips with highest PCR on Balkrishna Industries (1.31), Havells (1.03), ZEEL (0.90), Tata Power (0.89) and Grasim (0.84).
Among most active underlying, Tata Power witnessed an addition of 905 units of Open Interest in the October month futures contract, Bharti Airtel witnessed an addition of 2,929 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 6,065 units of Open Interest in the October month futures contract, IRCTC witnessed an addition of 372 units of Open Interest in the October month futures contract and Infosys witnessed an addition of 4,676 units of Open Interest in the October month futures contract (Provisional).
