Nifty continues downward trade on Tuesday

S&P CNX -- Nifty continued its downward trade on Tuesday and closed the session below 15750 mark. Market made negative start even after retail inflation or Consumer Price Index (CPI) eased to 7.04 per cent in May, mainly on account of softening food and fuel prices as the government as well as the RBI stepped in to control spiralling price rise by way of duty cuts and repo rate hike. However, index gained a traction to trade above neutral line, as India Exim Bank has said that the country's total merchandise exports are likely to be at $117.2 billion in the first quarter of FY23 (Q1FY23). The total merchandise exports stood at $95.5 billion in the corresponding quarter of the previous year.

But, index failed to hold its gains and drifted lower, as Fitch Ratings said the Reserve Bank is likely to raise interest rates further to 5.9 per cent by December 2022, on deteriorating inflation outlook. It said India's economy faces a worsening external environment, elevated commodity prices, and tighter global monetary policy. Finally, Nifty finished the session in negative territory. 

Most of the sectoral indices ended in red except IT, Metal and Pharma. The top gainers from the F&O segment were Adani Enterprises, STAR and Aurobindo Pharma. On the other hand, the top losers were Metropolis Healthcare, Bajaj Auto and Hindustan Petroleum Corporation. 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 decreased by 2.13% and reached 21.89. The 50 share Nifty down by 42.30 points or 0.27% to settle at 15,732.10.

Nifty June 2022 futures closed at 15742.00 (LTP) on Tuesday, at a premium of 9.90 points over spot closing of 15732.10, while Nifty July 2022 futures ended at 15765.00 (LTP), at a premium of 32.90 points over spot closing. Nifty June futures saw an addition of 6,493 units, taking the total open interest (contracts) to 2,25,792 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 7.45 points at 2635.20 (LTP) compared with spot closing of 2627.75. The numbers of contracts traded were 34,153(Provisional).

Infosys June 2022 futures traded at a discount of 1.50 points at 1439.45 (LTP) compared with spot closing of 1440.95. The numbers of contracts traded were 28,602 (Provisional).

Adani Enterprises June 2022 futures traded at a premium of 4.35 points at 2201.95 (LTP) compared with spot closing of 2197.60. The numbers of contracts traded were 26,701 (Provisional).

Tata Steel June 2022 futures traded at a discount of 50.55 points at 946.50 (LTP) compared with spot closing of 997.05. The numbers of contracts traded were 18,107 (Provisional).

Bajaj Auto June 2022 futures traded at a discount of 164.25 points at 3529.70 (LTP) compared with spot closing of 3693.95. The numbers of contracts traded were 17,527 (Provisional).

Among, Nifty calls, 15800 SP from the June month expiry was the most active call with an addition of 3,736 units open interests. Among Nifty puts, 15700 SP from the June month expiry was the most active put with an addition of 3,031 units open interests. The maximum OI outstanding for Calls was at 17000 SP (50,085 units) and that for Puts was at 15500 SP (64,342 units). The respective Support and Resistance levels of Nifty are: Resistance 15,840.25 -- Pivot Point 15,749.85 -- Support -- 15,641.70.

The Nifty Put Call Ratio (PCR) finally stood at (1.15) for June month contract. The top five scrips with highest PCR on Hero Motocorp (1.39), REC (1.29), Firstsource Solutions (1.13), Bandhan Bank (0.93) and ACC (0.92).

Among most active underlying, Adani Enterprise witnessed an addition of 905 units of Open Interest in the June month futures contract, Reliance Industries witnessed an addition of 2,854 units of Open Interest in the June month futures, Bajaj Auto witnessed an addition of 1,739 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 2,072 units of Open Interest in the June month futures contract and Infosys witnessed an addition of 6,160 units of Open Interest in the June month futures contract (Provisional).