Nifty witnesses significant losses on Friday

Nifty witnessed significant losses on last trading day of week amid global sell off as traders remain concerned after Russia-Ukraine war continued. Market made dull start, as India Ratings stated that the country’s current account deficit is likely to hit a three-year high of 1.8 per cent or $43.81 billion in FY22, as against a surplus of 0.9 per cent or $23.91 billion in FY21. Further, index continued its southward journey trade, as the United Nations said Foreign Direct Investment inflows to India declined $19 billion to $45 billion in 2021 but the country still remained among the top 10 global economies for FDI last year. In late afternoon session, market enlarged its losses to trade at day’s low level, as basket of crude oil that India buys has hit a decade high of $121 per barrel, but retail selling prices of petrol and diesel continue to remain frozen. The Indian basket on June 9, 2022 touched $121.28, matching levels seen in February/March 2012. Finally, Nifty closed the day’s trade below its 16250 mark.  

All the sectoral indices ended in red. The top gainers from the F&O segment were Deepak Nitrite, Trent and Torrent Power. On the other hand, the top losers were Godrej Properties, Indiabulls Housing Finance and Firstsource Solutions. 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 2.27% and reached 19.58. The 50 share Nifty down by 276.30 points or 1.68% to settle at 16,201.80.

Nifty June 2022 futures closed at 16208.00 (LTP) on Friday, at a premium of 6.20 points over spot closing of 16201.80, while Nifty July 2022 futures ended at 16225.15 (LTP), at a premium of 23.35 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 5.20 points at 2719.10 (LTP) compared with spot closing of 2713.90. The numbers of contracts traded were 46,209 (Provisional).

Tata Steel June 2022 futures traded at a discount of 51.00 points at 972.00 (LTP) compared with spot closing of 1023.00. The numbers of contracts traded were 25,800 (Provisional).

Infosys June 2022 futures traded at a premium of 5.00 points at 1480.00 (LTP) compared with spot closing of 1475.00. The numbers of contracts traded were 25,362 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 1.30 points at 1350.05 (LTP) compared with spot closing of 1348.75. The numbers of contracts traded were 21,268 (Provisional).

Bajaj Finance June 2022 futures traded flat with spot closing of 5658.00. The numbers of contracts traded were 18,134 (Provisional).

Among, Nifty calls, 16300 SP from the June month expiry was the most active call with an addition of 6,703 units open interests. Among Nifty puts, 16200 SP from the June month expiry was the most active put with an addition of 7,249 units open interests. The maximum OI outstanding for Calls was at 17000 SP (48,690 units) and that for Puts was at 16000 SP (90,218 units). The respective Support and Resistance levels of Nifty are: Resistance 16,293.47 -- Pivot Point 16,233.03 -- Support -- 16,141.37.

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 (1.32), Firstsource Solutions (1.20), Indus Tower (1.08), Biocon (0.96) and Power Grid Corporation (0.93).

Among most active underlying, Reliance Industries witnessed an addition of 4,262 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 4,957 units of Open Interest in the June month futures contract, Bajaj Finance witnessed an addition of 3,713 units of Open Interest in the June month futures contract, HDFC witnessed an addition of 6,362 units of Open Interest in the June month futures contract and Infosys witnessed an addition of 8,934 units of Open Interest in the June month futures contract (Provisional).