Nifty resumes northward journey on Thursday

S&P CNX – Nifty resumed northward journey on Thursday ahead of weekly F&O expiry. Market made negative start, as Ministry of Finance said the gross GST (Goods and Services Tax) revenue for the month of May crossed over Rs 1.40 lakh crore, a 16.6 per cent drop in comparison to April when GST collections were at a record high. Further, market traded volatile with a private report that even as the government is planning to put a leash on wasteful revenue spending to rein in fiscal deficit, it has decided against trimming the record budgetary capital expenditure target for FY23, betting big on its high multiplier effect to spur growth. The finance ministry has asked various infrastructure ministries to ensure they realise their capex goals and create durable assets.

However, in late morning trade, index added points after Icra Ratings in its report has said that manufacturing sector capital expenditure is on course for a leg-up with overwhelming responses to the government's production-linked incentives schemes, especially for lithium-ion battery, pharma and solar module segments. Finally, Nifty closed the day’s trade near intraday high point, as bank credit to NBFCs grew in double digit in FY22 with outstanding bank credit to them rising by 10.4 per cent to Rs 10.5 lakh crore on the back of improvement in overall economic activities and banks' renewed focus on the NBFC sector improvement in their balance sheets.

Most of the sectoral indices ended in green except Bank, Auto and Healthcare. The top gainers from the F&O segment were LTTS, Reliance Industries and Abbott India. On the other hand, the top losers were Hero Motocorp, Info Edge (India) and Apollo Hospitals Enterprise. In the index option segment, maximum OI continues to be seen in the 17400 -17800 calls and 15400 -15750 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.51% and reached 20.32. The 50 share Nifty up by 105.25 points or 0.64% to settle at 16,628.00.

Nifty June 2022 futures closed at 16630.00 (LTP) on Thursday, at a premium of 2.00 points over spot closing of 16628.00, while Nifty July 2022 futures ended at 16650.00 (LTP), at a premium of 22.00 points over spot closing. Nifty June futures saw an addition of 16,440 units, taking the total open interest (Contracts) to 2,24,297 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 discount of 5.30 points at 2723.00 (LTP) compared with spot closing of 2728.30. The numbers of contracts traded were 60,433 (Provisional).

Infosys June 2022 futures traded at a discount of 0.45 points at 1507.55 (LTP) compared with spot closing of 1508.00. The numbers of contracts traded were 29,552 (Provisional).

Tata Steel June 2022 futures traded at a discount of 52.00 points at 1029.00 (LTP) compared with spot closing of 1081.00. The numbers of contracts traded were 22,427 (Provisional).

TCS June 2022 futures traded at a discount of 0.05 points at 3424.95 (LTP) compared with spot closing of 3425.00. The numbers of contracts traded were 18,510 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 4.25 points at 1389.45 (LTP) compared with spot closing of 1385.20. The numbers of contracts traded were 18,229 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with an addition of 631 units open interests. Among Nifty puts, 16500 SP from the June month expiry was the most active put with an addition of 6,081 units open interests. The maximum OI outstanding for Calls was at 17500 SP (48,492 units) and that for Puts was at 15500 SP (66,800 units). The respective Support and Resistance levels of Nifty are: Resistance 16,701.92 -- Pivot Point 16,572.48 -- Support -- 16,498.57.

The Nifty Put Call Ratio (PCR) finally stood at (1.30) for June month contract. The top five scrips with highest PCR on Atul (1.46), Hero Motocorp (1.17), Ashok Leyland (1.09), Piramal Enterprises (1.04) and ACC (0.99).

Among most active underlying, Reliance Industries witnessed an addition of 6,162 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 955 units of Open Interest in the June month futures contract, Infosys witnessed an addition of 4,583 units of Open Interest in the June month futures contract, ICICI Bank witnessed an addition of 1,469 units of Open Interest in the June month futures contract (Provisional).