Nifty ends below neutral line on Monday

Indian benchmark -- Nifty -- finished Monday’s trading session below neutral line ahead of the RBI's policy decision later this week. Market made negative start, as continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments. Afterwards, index extended its downward trend after Union Health Ministry data showed that India logged 4,270 new coronavirus infections taking the tally of COVID-19 cases to 4,31,76,817, while the daily positivity rate was recorded above one per cent after 34 days. But, in late afternoon session, market trimmed most of its losses, as RBI data showed that the country's foreign exchange reserves increased by $3.854 billion to $601.363 billion in the week ended May 27. Finally, Nifty closed the trade in red zone.

Most of the sectoral indices ended in red except Bank, Auto and Metal. The top gainers from the F&O segment were RAIN, Bajaj Auto and Icici Prudential Life Insurance Comp. On the other hand, the top losers were IEX, Coforge and Indiabulls Housing Finance. In the index option segment, maximum OI continues to be seen in the 17400 -17800 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 increased by 1.13% and reached 20.20. The 50 share Nifty down by 14.75 points or 0.08% to settle at 16,569.55.

Nifty June 2022 futures closed at 16583.10 (LTP) on Monday, at a premium of 13.55 points over spot closing of 16569.55, while Nifty July 2022 futures ended at 16601.00 (LTP), at a premium of 31.45 points over spot closing. Nifty June futures saw a contraction of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 1,86,358 mn 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 7.70 points at 2773.95 (LTP) compared with spot closing of 2766.25. The numbers of contracts traded were 33,981 (Provisional).

Infosys June 2022 futures traded at a premium of 3.05 points at 1534.05 (LTP) compared with spot closing of 1531.00. The numbers of contracts traded were 25,338 (Provisional).

Tata Steel June 2022 futures traded at a discount of 50.15 points at 1028.85 (LTP) compared with spot closing of 1079.00. The numbers of contracts traded were 19,369 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 4.00 points at 1381.00 (LTP) compared with spot closing of 1377.00. The numbers of contracts traded were 14,851 (Provisional).

JSW Steel June 2022 futures traded at a premium of 2.60 points at 580.20 (LTP) compared with spot closing of 577.60. The numbers of contracts traded were 13,010 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with an addition of 649 units open interests. Among Nifty puts, 16500 SP from the June month expiry was the most active put with an addition of 7,522 units open interests. The maximum OI outstanding for Calls was at 17500 SP (46,440 units) and that for Puts was at 15500 SP (61,448 units). The respective Support and Resistance levels of Nifty are: Resistance 16,638.82 -- Pivot Point 16,541.68 -- Support -- 16,472.42.

The Nifty Put Call Ratio (PCR) finally stood at (1.33) for June month contract. The top five scrips with highest PCR on Atul (1.43), Piramal Enterprises (1.00), Hero Motocorp (1.00), Indus Tower (0.99) and ACC (0.92).

Among most active underlying, Reliance Industries witnessed an addition of 2,151 units of Open Interest in the June month futures, Infosys witnessed an addition of 4,119 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 821 units of Open Interest in the June month futures contract, JSW Steel witnessed an addition of 732 units of Open Interest in the June month futures contract and ICICI Bank witnessed an addition of 1,594 units of Open Interest in the June month futures contract (Provisional).