Nifty ends with marginal losses on Tuesday

Indian equity benchmark Nifty ended with marginal losses on Tuesday. The start of the day was on a strong note, after the commerce ministry in its latest data has showed that India's merchandise exports rose by 16.78 per cent to $37.94 billion in June 2022 as compared to $32.49 billion in the same month last year. Markets remained positive for the most part of the trading session, as India's dominant services industry expanded at the fastest pace in over eleven years in June amid strong demand but stubborn inflation remains a concern as prices charged rose at the sharpest rate in almost five years. The S&P Global India Services Purchasing Managers' Index rose to 59.2 in June from 58.9 in May, its highest since April 2011.

However, key index failed to hold its gains in the last hours of the trading session and finally ended the day in red terrain, as traders got cautious amid report that Industry and trade chambers have voiced concern at some of last week’s decisions of the Goods and Services Tax (GST) Council, such as taxing hospital room tariffs and bringing unbranded packaged consumer items within the tax net. Sentiments also got impacted, amid a private report stated that new IT rules drafted last year may create entry barriers affecting ease of doing business in India.

Most of the sectoral indices ended in red except Metal and Pharma. The top gainers from the F&O segment were SBI Cards, Godrej Consumer Products and Havells India. On the other hand, the top losers were RBL Bank, SRF and Coromandel International. In the index option segment, maximum OI continues to be seen in the 16300 -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 0.18% and reached 20.78. The 50 share Nifty down by 24.50 points or 0.15% to settle at 15,810.85.

Nifty July 2022 futures closed at 15766.00 (LTP) on Tuesday, at a discount of 44.85 points over spot closing of 15810.85, while Nifty August 2022 futures ended at 15796.00 (LTP), at a discount of 14.85 points over spot closing.  Nifty July futures saw addition of 17,361 units, taking the total outstanding open interest (OI) to 2,59,467 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 2.20 points at 2429.35 (LTP) compared with spot closing of 2431.55. The numbers of contracts traded were 51,145 (Provisional).

Infosys July 2022 futures traded at a premium of 0.10 points at 1477.00 (LTP) compared with spot closing of 1476.90. The numbers of contracts traded were 24,852 (Provisional).

TCS July 2022 futures traded at a discount of 9.50 points at 3208.50 (LTP) compared with spot closing of 3218.00. The numbers of contracts traded were 24,769 (Provisional).

HDFC Bank July 2022 futures traded at a premium of 3.60 points at 1352.65 (LTP) compared with spot closing of 1349.05. The numbers of contracts traded were 23,044 (Provisional).

Tata Steel July 2022 futures traded at a premium of 0.85 points at 860.80 (LTP) compared with spot closing of 859.95. The numbers of contracts traded were 22,326 (Provisional). 

Among, Nifty calls, 15900 SP from the June month expiry was the most active call with an addition of 12,890 units open interests. Among Nifty puts, 15900 SP from the June month expiry was the most active put with an addition of 14,677 units open interests. The maximum OI outstanding for Calls was at 16500 SP (47,682 units) and that for Puts was at 15000 SP (70,479 units). The respective Support and Resistance levels of Nifty are: Resistance 15,962.58 -- Pivot Point 15,874.02 -- Support -- 15,722.28.

The Nifty Put Call Ratio (PCR) finally stood at (1.25) for June month contract. The top five scrips with highest PCR on Oracle Financial Services Software (3.39), ACC (1.64), ABC Capital (1.10), RBL Bank (1.06) and Firstsource Solutions (0.97).

Among most active underlying, Reliance Industries witnessed a contraction of 2,168 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 1,517 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 2,756 units of Open Interest in the June month futures, TCS witnessed an addition of 4,370 units of Open Interest in the June month futures and Infosys witnessed an addition of 6,249 units of Open Interest in the June month futures contract (Provisional).