Nifty ends near intraday low point on Thursday

Nifty ended Thursday’s trading session near intraday low point amid Federal Reserve hiked rates by 75 basis points. Market made positive start, with a report that India has witnessed the sharpest rise among the Asian economies, with a six-position jump from 43rd to 37th rank on the annual World Competitiveness Index compiled by the Institute for Management Development, largely due to gains in economic performance. Further, market extended its gains for little time, as Periodic Labour Force (PLF) Survey issued by the Ministry of Statistics and Programme Implementation has said that the unemployment rate or the proportion of persons in the labor force who could not find jobs has dipped to 4.2 percent in July 2020-June 2021 from 4.8 percent a year ago amid the pandemic that caused economic disruption. The unemployment rate was 5.8 percent in 2018-19 and 6.1 percent in 2017-18.

But, index failed to hold grip and drifted lower, as provisional data available on the NSE showed that foreign institutional investors (FIIs) have net sold Rs 3,531.15 crore worth of shares on June 15. Market added more losses to finish the session at day’s low point after RBI Deputy Governor M Rajeshwar Rao said that despite the improvement in asset quality, financial institutions, including banks, need to proactively undertake stress testing of loan books to examine their loss absorption limits and take steps to improve them wherever required. Finally, nifty closed the session below 15400 mark.

All the sectoral indices ended in red. The top gainers from the F&O segment were Crompton Greaves Consumer Electricls, Coforge and Nippon Life India Asset Management. On the other hand, the top losers were Vedanta, RBL Bank and STAR. In the index option segment, maximum OI continues to be seen in the 16900 -17200 calls and 14900 -15200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.25% and reached 22.87. The 50 share Nifty down by 331.55 points or 2.11% to settle at 15,360.60.

Nifty June 2022 futures closed at 15339.95 on Thursday, at a discount of 20.65 points over spot closing of 15360.60, while Nifty July 2022 futures ended at 15352.00, at a discount of 8.60 points over spot closing. Nifty June futures saw an addition of 38,999 units, taking the total open interest (contracts) to 2,49,246 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 2.65 points at 2552.45 (LTP) compared with spot closing of 2555.10. The numbers of contracts traded were 45,792 (Provisional).

Infosys June 2022 futures traded at a discount of 1.00 points at 1397.25 (LTP) compared with spot closing of 1398.25. The numbers of contracts traded were 33,799 (Provisional).

Tata Steel June 2022 futures traded at a premium of 1.20 points at 899.85 (LTP) compared with spot closing of 898.65. The numbers of contracts traded were 31,016 (Provisional).

Tata Motors June 2022 futures traded at a premium of 0.15 points at 393.15 (LTP) compared with spot closing of 393.00. The numbers of contracts traded were 24,423 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 0.55 points at 1280.00 (LTP) compared with spot closing of 1279.45. The numbers of contracts traded were 21,485 (Provisional).

Among, Nifty calls, 15800 SP from the June month expiry was the most active call with an addition of 4,243 units open interests. Among Nifty puts, 15000 SP from the June month expiry was the most active put with an addition of 5,600 units open interests. The maximum OI outstanding for Calls was at 17000 SP (49,663 units) and that for Puts was at 15000 SP (69,100 units). The respective Support and Resistance levels of Nifty are: Resistance 15,704.13 -- Pivot Point 15,519.62 -- Support -- 15,176.08.

The Nifty Put Call Ratio (PCR) finally stood at (1.09) for June month contract. The top five scrips with highest PCR on Hero Motocorp (1.29), REC (1.13), Indus Tower (0.98), ACC (0.97) and Trent (0.94).

Among most active underlying, Reliance Industries witnessed an addition of 1,775 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 3,001 units of Open Interest in the June month futures contract, Adani Enterprise witnessed an addition of 627 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 2,782 units of Open Interest in the June month futures contract and Infosys witnessed an addition of 6,874 units of Open Interest in the June month futures contract (Provisional).