Indian benchmark – Nifty finished volatile trading session in red zone amid concerns of global recession. Market made negative start, as referring to economic crisis in Sri Lanka, a Reserve Bank article said states are showing warning signs of building stress, and the 5 most indebted ones -- Punjab, Rajasthan, Bihar, Kerala and West Bengal -- need to take corrective measures by cutting down expenditure on non-merit goods. Further, market continued to trade below neutral line, as RBI Governor Shaktikanta Das has said that big tech's play in finance poses systemic concerns like overleverage. Besides, RBI Governor said that loan recovery agents using harsh methods like calling up at odd hours, foul language unacceptable. Traders ignored that Reserve Bank of India (RBI) turned net purchaser of the US currency in April, after it bought $1.965 billion from spot market. Index extended its weak run till end and closed the session below 15300 mark.
Most of the sectoral indices ended in red except Bank, Media and Metal. The top gainers from the F&O segment were Delta Crop, HAL and Sun TV. On the other hand, the top losers were Mphasis, Larus Lab and Titan Company. In the index option segment, maximum OI continues to be seen in the 15900 -16200 calls and 14300 -14650 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 0.48% and reached 22.76. The 50 share Nifty down by 67.10 points or 0.44% to settle at 15,293.50.
Nifty June 2022 futures closed at 15348.80 (LTP) on Friday, at a premium of 55.30 points over spot closing of 15293.50, while Nifty July 2022 futures ended at 15370.00 (LTP), at a premium of 76.50 points over spot closing. Nifty June futures saw an addition of 8,817 units, taking the total open interest to 2,29,173 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 2604.00 (LTP) compared with spot closing of 2605.05. The numbers of contracts traded were 48,933 (Provisional).
TCS June 2022 futures traded at a premium of 3.60 points at 3107.60 (LTP) compared with spot closing of 3104.00. The numbers of contracts traded were 32,116 (Provisional).
Tata Steel June 2022 futures traded at a premium of 2.80 points at 909.80 (LTP) compared with spot closing of 907.00. The numbers of contracts traded were 31,133 (Provisional).
Infosys June 2022 futures traded at a premium of 0.55 points at 1395.40 (LTP) compared with spot closing of 1394.85. The numbers of contracts traded were 30,211 (Provisional).
HDFC Bank June 2022 futures traded at a discount of 0.70 points at 1296.00 (LTP) compared with spot closing of 1296.70. The numbers of contracts traded were 26,671 (Provisional).
Among, Nifty calls, 16000 SP from the June month expiry was the most active call with an addition of 1,496 units open interests. Among Nifty puts, 15300 SP from the June month expiry was the most active put with an addition of 24,477 units open interests. The maximum OI outstanding for Calls was at 16000 SP (54,654 units) and that for Puts was at 14500 SP (68,808 units). The respective Support and Resistance levels of Nifty are: Resistance 15,401.47 -- Pivot Point 15,292.43 -- Support -- 15,184.47.
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 3,848 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 3,090 units of Open Interest in the June month futures contract, ICICI Bank witnessed an addition of 2,305 units of Open Interest in the June month futures contract, Adani Enterprises witnessed an addition of 1,297 units of Open Interest in the June month futures contract and TCS witnessed an addition of 3,268 units of Open Interest in the June month futures contract (Provisional).
