Nifty extends southward journey on Tuesday

S&P CNX Nifty extended previous session’s southward journey and ended the day’s trade with cut of around a percent. India VIX was up by 1.10%. Market started day on somber note with ratings and research firm Acuite Ratings & Research’s report that the expectation of the expansion of the current account deficit is not just driven by elevated global commodity prices, but is also linked to the unlocking of the economy reviving pent-up demand and improved vaccination cover aiding an organic recovery in the economy. Further, market extended its losses ahead of Reserve Bank of India’s (RBI) Monetary Policy Committee decision on June 8, 2022 and surge in crude oil prices. In late afternoon session, index continued its losing momentum and closed the session below 16450 mark.

Most of the sectoral indices ended in red except Auto and Oil& Gas. The top gainers from the F&O segment were ONGC, Honeywell Automation India and Indus Tower. On the other hand, the top losers were UPL, Titan Company and ZEEL. In the index option segment, maximum OI continues to be seen in the 16900 -17200 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 1.10% and reached 20.43. The 50 share Nifty down by 153.20 points or 0.92% to settle at 16,416.35.

Nifty June 2022 futures closed at 16421.20 (LTP) on Tuesday, at a premium of 4.85 points over spot closing of 16416.35, while Nifty July 2022 futures ended at 16442.00 (LTP), at a premium of 25.65 points over spot closing. Nifty June futures saw a contraction of 12,963 units, taking the total open interest (contracts) to 2,34,367 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 5.90 points at 2772.95 (LTP) compared with spot closing of 2767.05. The numbers of contracts traded were 26,719 (Provisional).

Infosys June 2022 futures traded at a premium of 2.40 points at 1509.00 (LTP) compared with spot closing of 1506.60. The numbers of contracts traded were 15,344 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 6.25 points at 1368.40 (LTP) compared with spot closing of 1362.15. The numbers of contracts traded were 14,348 (Provisional).

UltraTech Cement June 2022 futures traded at a premium of 19.00 points at 5568.00 (LTP) compared with spot closing of 5549.00. The numbers of contracts traded were 12,708 (Provisional).

Maruti Suzuki India June 2022 futures traded at a premium of 24.60 points at 7839.60 (LTP) compared with spot closing of 7815.00. The numbers of contracts traded were 12,007 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with an addition of 3,507 units open interests. Among Nifty puts, 16400 SP from the June month expiry was the most active put with an addition of 7,355 units open interests. The maximum OI outstanding for Calls was at 17000 SP (46,756 units) and that for Puts was at 16000 SP (79,935 units). The respective Support and Resistance levels of Nifty are: Resistance 16,486.70 -- Pivot Point 16,416.90 -- Support -- 16,346.55.

The Nifty Put Call Ratio (PCR) finally stood at (1.30) for June month contract. The top five scrips with highest PCR on Atul (1.32), Hero Motocorp (1.07), Piramal Enterprises (0.98), Indus Tower (0.97) and Ashok Leyland (0.95).

Among most active underlying, Reliance Industries witnessed an addition of 2,852 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 2,871 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 588 units of Open Interest in the June month futures contract, Adani Enterprises witnessed an addition of 630 units of Open Interest in the June month futures and Maruti Suzuki witnessed an addition of 402 units of Open Interest in the June month futures contract (Provisional).