Nifty ends volatile trading session in red territory

Indian benchmark -- Nifty – finished volatile trading session on a negative note. Market made cautious start, as government data showed that India’s economic growth hit a four-quarter low of 4.1%, partly driven by base effect. The growth was 20.1%, 8.4%, and 5.4%, in the first, second and third quarters, respectively. Further, market turned volatile even after government data showing that production growth of eight infrastructure sectors rose to a six-month high of 8.4 per cent in April on the back of better performance by coal, refinery products and electricity segments . In afternoon trade, index drifted in red zone amid reports that India's annual per capita income at constant prices remained below the pre-COVID level at Rs 91,481 in 2021-22. However, the per capita income based on Net National Income (NNI) at constant price grew by 7.5 per cent in FY22 over the previous year. Finally, Nifty closed the day’s trade below 16550 mark.

Most of the sectoral indices ended in red except Bank, Metal and Consumer Durables. The top gainers from the F&O segment were Icici Prudential Life Insurance, Bharat Electronics and Astral. On the other hand, the top losers were Bajaj Auto, National Aluminium Company and Syngene International. 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 1.79% and reached 20.85. The 50 share Nifty down by 61.80 points or 0.37% to settle at 16,522.75.

Nifty June 2022 futures closed at 16529.65 (LTP) on Wednesday, at a premium of 6.90 points over spot closing of 16522.75, while Nifty July 2022 futures ended at 16553.95 (LTP), at a premium of 31.20 points over spot closing. Nifty June futures saw an addition of 6,768 units, taking the total open interest (contracts) to 2,15,045 units. The near month derivatives contract will expire on June 30, 2022 (Provisional).

From the most active contracts, Infosys June 2022 futures traded at a premium of 0.70 points at 1487.70 (LTP) compared with spot closing of 1487.00. The numbers of contracts traded were 41,161 (Provisional).

Tata Steel June 2022 futures traded at a discount of 49.10 points at 1011.90 (LTP) compared with spot closing of 1061.00. The numbers of contracts traded were 29,861 (Provisional).

Reliance Industries June 2022 futures traded at a discount of 6.00 points at 2629.00 (LTP) compared with spot closing of 2635.00. The numbers of contracts traded were 26,905 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 3.80 points at 1399.90 (LTP) compared with spot closing of 1396.10. The numbers of contracts traded were 18,531 (Provisional).

M&M June 2022 futures traded at a premium of 2.65 points at 1049.65 (LTP) compared with spot closing of 1047.00. The numbers of contracts traded were 14,555 (Provisional).

Among, Nifty calls, 16600 SP from the June month expiry was the most active call with an addition of 6,316 units open interests. Among Nifty puts, 16500 SP from the June month expiry was the most active put with an addition of 3,183 units open interests. The maximum OI outstanding for Calls was at 17000 SP (45,617 units) and that for Puts was at 16000 SP (75,234 units). The  respective  Support  and  Resistance  levels  of  Nifty  are:  Resistance  16,635.02  -- Pivot  Point 16,536.93 --  Support  --16,424.67.

The Nifty Put Call Ratio (PCR) finally stood at (1.27) for June month contract. The top five scrips with highest PCR on Atul (2.13), Hero Motocorp (1.51), Ashok Leyland (1.09), ACC (1.07) and Piramal Enterprises (1.06).

Among most active underlying, Infosys witnessed an addition of 15,285 units of Open Interest in the June month futures contract, Reliance Industries witnessed an addition of 1,459 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 762 units of Open Interest in the June month futures contract, Tata Steel witnessed a contraction of 401 units of Open Interest in the June month futures contract and ICICI Bank witnessed an addition of 465 units of Open Interest in the June month futures contract (Provisional).