Nifty snaps three day losing streak on Thursday

S&P CNX -- Nifty snapped three day losing streak on Thursday ahead of the month's F&O expiry. India VIX was down by 10.14%. Market made positive start, as trades found support after private report stating that India’s economy is expected to have grown at 9.2 per cent in the fiscal ended March 2022, after having contracted by 7.3 per cent in the previous financial year, aided by resilience in the rural economy, uptick in bank credit and rising GST collections. Soon, market trimmed its gains and slipped into red zone after report stated that the government is not planning any additional borrowing and will stick to the borrowing target fixed for the current fiscal year despite sacrificing revenue on account of reduction in duties on petroleum products and other goods.

Market continued dull trade in early afternoon deals, as Moody’s Investors Service slashed India's economic growth projection to 8.8 percent for 2022 from 9.1 percent earlier, citing high inflation. But, in the last hours of the trade, markets came back in green to end near their intraday high points. However, in late afternoon session market bounced back above neutral line to touch intraday high point. Finally, Nifty closed day’s trade with around a percent gains.

Most of the sectoral indices ended in green except FMCG. The top gainers from the F&O segment were Dr. Lal PathLabs, Torrent Pharmaceuticals and Interglobe Aviation. On the other hand, the top losers were ITC, Chambal Fertilisers & Chemicals and Havells India. In the index option segment, maximum OI continues to be seen in the 17400 -17650 calls and 15400 -15700 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 10.14% and reached 22.72. The 50 share Nifty up by 144.35 points or 0.90% to settle at 16,170.15.

Nifty June 2022 futures closed at 16189.00 (LTP) on Thursday, at a premium of 18.85 points over spot closing of 16170.15, while Nifty July 2022 futures ended at 16198.00 (LTP), at a premium of 27.85 points over spot closing. Nifty June futures saw an addition of 65,539 units, taking the total open interest (contracts) to 2,36,460 units. The near month derivatives contract will expire on June 30, 2022 (Provisional).

From the most active contracts, Reliance Industries June 2022 futures traded at a premium of 8.70 points at 2597.70 (LTP) compared with spot closing of 2589.00. The numbers of contracts traded were 73,018 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 2.00 points at 1371.00 (LTP) compared with spot closing of 1369.00. The numbers of contracts traded were 60,693 (Provisional).

Tata Steel June 2022 futures traded at a discount of 45.90 points at 1004.00 (LTP) compared with spot closing of 1049.90. The numbers of contracts traded were 56,235 (Provisional).

Infosys June 2022 futures traded at a discount of 12.05 points at 1415.90 (LTP) compared with spot closing of 1427.95. The numbers of contracts traded were 55,012 (Provisional).

TCS June 2022 futures traded at a premium of 6.65 points at 3236.60 (LTP) compared with spot closing of 3229.95. The numbers of contracts traded were 32,620 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with an addition of 6,724 units open interests. Among Nifty puts, 16000 SP from the June month expiry was the most active put with an addition of 4,861 units open interests. The maximum OI outstanding for Calls was at 17500 SP (31,228 units) and that for Puts was at 15500 SP (61,666 units). The respective Support and Resistance levels of Nifty are: Resistance 16,281.83 -- Pivot Point 16,092.77 -- Support -- 15,981.08.

The Nifty Put Call Ratio (PCR) finally stood at (0.64) for June month contract. The top five scrips with highest PCR on Torrent Power (2.27), Dalmia Bharat (1.83), Hero Motocorp (1.57), ACC (1.54) and Alkem Laboratories (1.33).

Among most active underlying, Reliance Industries witnessed an addition of 36,687 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 18,983 units of Open Interest in the June month futures contract, ICICI Bank witnessed an addition of 10,259 units of Open Interest in the June month futures contract, Adani Enterprises witnessed an addition of 5,526 units of Open Interest in the June month futures contract and Tata Steel witnessed an addition of 13,557 units of Open Interest in the June month futures contract (Provisional).