Nifty witnesses considerable losses on Monday

Nifty witnessed considerable losses on Monday, sliding below its crucial 15,800 levels during the day. Market made negative start, as FPIs have been net sellers for eight consecutive month, offloading Rs 13,888 crore worth of equities so far in June. With this, the FPIs have sold Rs 1,81,043 worth of equities so far this year. Further, index extended its losses, as RBI data showed that after rising for two consecutive weeks, the country’s foreign exchange reserves declined by $306 million to $601.057 billion in the week ended June 3. Market continued their weak run amid reports that with Chief Economic Advisor V Anantha Nageswaran citing the IMF forecast that the Indian economy would cross USD 5 trillion by 2026-27, leader P Chidambaram said the goal of a USD 5 trillion GDP appears to be a case of 'shifting goalposts' as the original target year was 2023-24.

Traders failed to take support with Central Board of Direct Taxes (CBDT) Chairman Sangeeta Singh stating that the number of income tax returns has increased in FY22 over the previous fiscal. She noted that the number of income tax returns was 7.14 crore in FY22 as against 6.9 crore in the preceding financial year, showing a clear growth. Finally, Nifty closed the session with the cut of above two and half a percent, as participants were keenly watching out for official data on consumer inflation in India due later in the day. 

All the sectoral indices ended in red. The top gainers from the F&O segment were Honeywell Automation India, Marico and Pidilite Industries. On the other hand, the top losers were RBL Bank, Indiabulls Housing Finance and Gujrat Gas. In the index option segment, maximum OI continues to be seen in the 16900 -17200 calls and 15400 -16550 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 14.25% and reached 22.37. The 50 share Nifty down by 427.40 points or 2.64% to settle at 15,774.40.

Nifty June 2022 futures closed at 15790.00 (LTP) on Monday, at a premium of 15.60 points over spot closing of 15774.40, while Nifty July 2022 futures ended at 15806.65 (LTP), at a premium of 32.25 points over spot closing. Nifty June futures saw an addition of 14,925 units, taking the total open interest (Contracts) to 2,43,648 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 1.05 points at 2666.95 (LTP) compared with spot closing of 2668.00. The numbers of contracts traded were 39,654 (Provisional).

RBL Bank June 2022 futures traded at a discount of 0.05 points at 87.55 (LTP) compared with spot closing of 87.60. The numbers of contracts traded were 38,430 (Provisional).

Infosys June 2022 futures traded at a discount of 0.40 points at 1428.45 (LTP) compared with spot closing of 1428.85. The numbers of contracts traded were 28,344 (Provisional).

ICICI Bank June 2022 futures traded flat with its spot closing of 688.00. The numbers of contracts traded were 19,934 (Provisional).

HDFC Bank June 2022 futures traded at a discount of 0.05 points at 1328.95 (LTP) compared with spot closing of 1329.00. The numbers of contracts traded were 19,895 (Provisional).

Among, Nifty calls, 16000 SP from the June month expiry was the most active call with an addition of 13,513 units open interests. Among Nifty puts, 15500 SP from the June month expiry was the most active put with an addition of 1,850 units open interests. The maximum OI outstanding for Calls was at 17000 SP (51,250 units) and that for Puts was at 15500 SP (65,210 units). The respective Support and Resistance levels of Nifty are: Resistance 15,879.03 -- Pivot Point 15,781.52 -- Support -- 15,676.88.

The Nifty Put Call Ratio (PCR) finally stood at (1.21) for June month contract. The top five scrips with highest PCR on Hero Motocorp (1.39), Indus Tower (0.96), ACC (0.94), Power Grid Corporation (0.85) and Bandhan Bank (0.85).

Among most active underlying, Reliance Industries witnessed an addition of 323 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 5,555 units of Open Interest in the June month futures contract, Adani Enterprise witnessed an addition of 583 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 2,395 units of Open Interest in the June month futures contract and Bajaj Finance witnessed an addition of 855 units of Open Interest in the June month futures contract (Provisional).