Nifty ends higher on weekly F&O expiry day

Local benchmark S&P CNX – Nifty finished weekly F&O expiry day on positive note. India VIX was down by 3.51%. Market made negative start, as the Organization for Economic Cooperation and Development (OECD) pegged India’s FY23 economic growth at 6.9 per cent, the lowest by a major bank or institution, saying the country had been adversely affected by Russia’s invasion of Ukraine. Further, market altering between green and red zone, as Reserve Bank of India Governor Shaktikanta Das, while estimating India's overall retail inflation for FY23 at 6.7 per cent, said that the 75 per cent of the increase in inflation projections can be attributed to the food group. But, in late afternoon session, market gained traction to trade day’s high point, as country’s exports increased 24.18 per cent to USD 9.39 billion during June 1-7, 2022 on account of healthy growth in sectors like engineering, gems and jewellery and petroleum products. The exports during June 1-7, 2021 stood at USD 7.56 billion. Finally Nifty closed the session with the gains above half a percent.

Most of the sectoral indices ended in green except Metal and PSU Bank. The top gainers from the F&O segment were Container Corporation of India, IEX and Biocon. On the other hand, the top losers were Tata Steel, STAR and AU Small Finance Bank. 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 decreased by 3.51% and reached 19.14. The 50 share Nifty up by 121.85 points or 0.74% to settle at 16,478.10.

Nifty June 2022 futures closed at 16485.00 (LTP) on Thursday, at a premium of 6.90 points over spot closing of 16478.10, while Nifty July 2022 futures ended at 16512.90 (LTP), at a premium of 34.80 points over spot closing. Nifty June futures saw an addition of 11,958 units, taking the total open interest (contracts) to 2,35,959 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 2.05 points at 2794.00 (LTP) compared with spot closing of 2796.05. The numbers of contracts traded were 41,692 (Provisional).

Tata Steel June 2022 futures traded at a discount of 45.95 points at 995.40 (LTP) compared with spot closing of 1041.35. The numbers of contracts traded were 35,580 (Provisional).

Infosys June 2022 futures traded at a premium of 4.20 points at 1518.70 (LTP) compared with spot closing of 1514.50. The numbers of contracts traded were 15,379 (Provisional).

Tata Motors June 2022 futures traded at a premium of 1.80 points at 430.65 (LTP) compared with spot closing of 428.85. The numbers of contracts traded were 14,134 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 2.40 points at 1382.00 (LTP) compared with spot closing of 1379.60. The numbers of contracts traded were 13,730 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with a contraction of 552 units open interests. Among Nifty puts, 16000 SP from the June month expiry was the most active put with an addition of 6,513 units open interests. The maximum OI outstanding for Calls was at 17000 SP (47,757 units) and that for Puts was at 16000 SP (86,317 units). The respective Support and Resistance levels of Nifty are: Resistance 16,565.98 -- Pivot Point 16,404.92 -- Support -- 16,317.03.

The Nifty Put Call Ratio (PCR) finally stood at (1.30) for June month contract. The top five scrips with highest PCR on Hero Motocorp (1.22), Atul (1.05), Indus Tower (1.03), Biocon (0.94) and Power Grid Corporation (0.93).

Among most active underlying, Reliance Industries witnessed an addition of 4,017 units of Open Interest in the June month futures, Tata Steel witnessed an addition of 3,446 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 1,034 units of Open Interest in the June month futures contract, SBIN witnessed an addition of 776 units of Open Interest in the June month futures contract (Provisional).