Indian equity benchmark Nifty ended with marginal losses on Thursday. After a slightly negative start, index was in green terrain for a little time, aided with Finance Minister Nirmala Sitharaman’s statement that any increase in GST rates under the rate rationalisation exercise is intended to make up for the ‘inefficiencies’ in the value chain. However, market soon turned volatile and altered between green and red terrain till the end of the trading session, amid a private report that inflationary pressures are likely to continue and force the RBI to further hike interest rates during the course of the current fiscal but the tighter financial conditions can impact growth. The report said there are reasons to be optimistic on the growth front but factors like tighter financial conditions can have an impact on the GDP expansion.
Finally, index ended in red, following weak global markets. Sentiments were cautious during the entire trading session, as exchange data showed that foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 851.06 crore on Wednesday. Traders also got cautious, amid reports that the Goods and Services Tax (GST) Council’s two-day meeting concluded without any decision on extending compensation to states - for revenue loss on account of the regime’s implementation five years ago - beyond June 30. This was despite at least two dozen states raising the issue.
Most of the sectoral indices ended in red except Bank, Financial Services and Private Bank. The top gainers from the F&O segment were Shriram Transport Finance Company, Indus Towers and REC. On the other hand, the top losers were Bajaj Auto, Delta Corp and IOC. In the index option segment, maximum OI continues to be seen in the 16350 -16700 calls and 14950 -15200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 0.27% and reached 21.84. The 50 share Nifty down by 18.85 points or 0.12% to settle at 15,780.25.
Nifty July 2022 futures closed at 15718.00 (LTP) on Thursday, at a discount of 62.25 points over spot closing of 15780.25, while Nifty August 2022 futures ended at 15742.00 (LTP), at a discount of 38.25 points over spot closing. Nifty July futures saw an addition of 64,503 units, taking the total open interest (Contracts) to 2,41,258 units. The near month derivatives contract will expire on July 28, 2022 (Provisional).
From the most active contracts, Reliance Industries July 2022 futures traded at a discount of 0.90 points at 2588.10 (LTP) compared with spot closing of 2589.00. The numbers of contracts traded were 59,834 (Provisional).
Infosys July 2022 futures traded at a premium of 3.30 points at 1462.80 (LTP) compared with spot closing of 1459.50. The numbers of contracts traded were 56,513 (Provisional).
Tata Steel July 2022 futures traded at a discount of 2.50 points at 862.00 (LTP) compared with spot closing of 864.50. The numbers of contracts traded were 39,381 (Provisional).
HDFC Bank July 2022 futures traded at a discount of 2.85 points at 1341.15 (LTP) compared with spot closing of 1344.00. The numbers of contracts traded were 32,821 (Provisional).
TCS July 2022 futures traded at a premium of 0.50 points at 3265.00 (LTP) compared with spot closing of 3264.50. The numbers of contracts traded were 29,392 (Provisional).
Among, Nifty calls, 17000 SP from the July month expiry was the most active call with an addition of 3,617 units open interests. Among Nifty puts, 15800 SP from the July month expiry was the most active put with an addition of 6,155 units open interests. The maximum OI outstanding for Calls was at 16500 SP (39,655 units) and that for Puts was at 15000 SP (52,687 units). The respective Support and Resistance levels of Nifty are: Resistance 15,870.55 -- Pivot Point 15,799.70 -- Support -- 15,709.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.30) for July month contract. The top five scrips with highest PCR on RBL Bank (1.28), Glenmark Pharmaceuticals (1.19), Container Corporation of India (1.15), Atul (1.14) and UBL (1.07).
Among most active underlying, Reliance Industries witnessed an addition of 19,581 units of Open Interest in the July month futures, Infosys witnessed an addition of 25,762 units of Open Interest in the July month futures, HDFC Bank witnessed an addition of 16,208 units of Open Interest in the July month futures, HDFC witnessed an addition of 19,758 units of Open Interest in the July month futures and ICICI Bank witnessed an addition of 6,286 units of Open Interest in the July month futures contract (Provisional).
