S&P CNX -- Nifty failed to continue its yesterday’s gaining streak on Tuesday and finished the day’s trade below 16600 mark amid steep rise in crude oil prices. India VIX was up by 2.48%. Market started day on somber note, as domestic ratings agency India Ratings said the GST has not helped states achieve the key objective of boosting their tax revenue. The rating agency said that the data does not point to any benefits to the states in the last five years since the implementation of GST (Goods and Services Tax). Further, market trimmed its looses but continued to trade below neutral line amid a private report stating that India’s economy probably grew slower than previously estimated last year, with virus curbs in the final quarter seen as a drag on activity while the war in Europe has added a new inflation hurdle to recovery.
Traders ignored Ajay Seth, secretary at the department of economic affairs, statement that India's inflation should ease in the coming months following steps taken by the Union government and as global prices coming off in May will have a salutary impact. Market continued its southbound journey till the end after a private report said that soaring prices and the subsequent hit to consumer spending and investments are likely to further dampen India's economy, as the central bank faces a finely balanced struggle to tame inflation via rate hikes without hurting economic growth.
Most of the sectoral indices ended in red except Auto, FMCG and Media. The top gainers from the F&O segment were Info Edge (India), Piramal Enterprises and MCX. On the other hand, the top losers were Glenmark Pharmaceuticals, Metropolis Healthcare and Aarti Industries. In the index option segment, maximum OI continues to be seen in the 16950 -17250 calls and 15900 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.48% and reached 20.48. The 50 share Nifty down by 76.85 points or 0.46% to settle at 16,584.55.
Nifty June 2022 futures closed at 16555.00 (LTP) on Tuesday, at a discount of 29.55 points over spot closing of 16584.55, while Nifty July 2022 futures ended at 16569.40 (LTP), at a discount of 15.15 points over spot closing. Nifty June futures saw a contraction of 12,337 units, taking the total open interest (Contracts) to 2,16,962 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 3.20 points at 2626.80 (LTP) compared with spot closing of 2623.60. The numbers of contracts traded were 68,718 (Provisional).
Tata Steel June 2022 futures traded at a discount of 48.60 points at 1007.15 (LTP) compared with spot closing of 1055.75. The numbers of contracts traded were 38,898 (Provisional).
Infosys June 2022 futures traded at a discount of 4.40 points at 1505.60 (LTP) compared with spot closing of 1510.00. The numbers of contracts traded were 30,478 (Provisional).
Jindal Steel & Power June 2022 futures traded at a premium of 0.25 points at 379.20 (LTP) compared with spot closing of 378.95. The numbers of contracts traded were 29,656 (Provisional).
Vedanta June 2022 futures traded at a premium of 1.25 points at 324.30 (LTP) compared with spot closing of 323.05. The numbers of contracts traded were 29,391 (Provisional).
Among, Nifty calls, 17000 SP from the June month expiry was the most active call with an addition of 2,024 units open interests. Among Nifty puts, 16500 SP from the June month expiry was the most active put with an addition of 5,122 units open interests. The maximum OI outstanding for Calls was at 17000 SP (43,873 units) and that for Puts was at 16000 SP (77,981 units). The respective Support and Resistance levels of Nifty are: Resistance 16,676.23 -- Pivot Point 16,599.07 -- Support -- 16,507.38.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for June month contract. The top five scrips with highest PCR on Hero Motocorp (1.63), Atul (1.43), Piramal Enterprises (1.14), Cholamandalam Investment and Fin Co (1.13) and Muthoot Finance (1.12).
Among most active underlying, Reliance Industries witnessed an addition of 13,193 units of Open Interest in the June month futures contract, Bharti Airtel witnessed an addition of 8,643 units of Open Interest in the June month futures contract, Sun Pharmaceutical Industries witnessed an addition of 3,354 units of Open Interest in the June month futures contract, Tata Steel witnessed an addition of 1,427 units of Open Interest in the June month futures contract and ICICI Bank witnessed an addition of 2,117 units of Open Interest in the June month futures contract (Provisional).
