Nifty finished the Wednesday’s session with the gain of above a percent. Market made cautious start after rating agency Crisil has warned of more companies defaulting on their debt obligations as it expects the withdrawal of pandemic-induced relief measures coupled with volatile input prices creating cost pressures for entities, especially those rated in the sub-investment-grade category. Further, market extended its gains with Tarun Bajaj, Revenue Secretary, Ministry of Finance, stating that simplification of Goods and Services Tax (GST) law, rationalisation of rates, and removal of tax inversion are among the priority for the government of India. He also said the government is looking forward to having lower rates on fewer products, with indirect taxes contributing 35-40 per cent of the tax revenue. In afternoon trade, index added more points to trade above 15900 mark with private report stating that the Centre's production-linked incentive (PLI) scheme has the potential to add nearly 4 per cent to GDP in terms of incremental revenues. The PLI scheme aims to provide nearly Rs 2.4 lakh crore worth of incentives over the next five years, with the lion's share going to electronics, auto components, and pharma. Finally, Nifty finished the session above 15900 mark.
Most of the sectoral indices ended in green except Oil and Gas. The top gainers from the F&O segment were ABB, Honeywell Automation India and Dalmia Bharat. On the other hand, the top losers were NMDC, Balrampur Chini Mills and ONGC. 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 2.50% and reached 20.27. The 50 share Nifty up by 178.95 points or 1.13% to settle at 15,989.80.
Nifty July 2022 futures closed at 16018.45 (LTP) on Wednesday, at a premium of 28.65 points over spot closing of 15989.80, while Nifty August 2022 futures ended at 16032.65 (LTP), at a premium of 42.85 points over spot closing. Nifty July futures saw an addition of 18,826 units, taking the total outstanding open interest (OI) to 2,65,856 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 premium of 6.00 points at 2421.00 (LTP) compared with spot closing of 2415.00. The numbers of contracts traded were 50,451 (Provisional).
Bajaj Finance July 2022 futures traded at a premium of 5.80 points at 5935.80 (LTP) compared with spot closing of 5930.00. The numbers of contracts traded were 25,231 (Provisional).
Tata Steel July 2022 futures traded at a premium of 3.80 points at 862.80 (LTP) compared with spot closing of 859.00. The numbers of contracts traded were 23,075 (Provisional).
Infosys July 2022 futures traded at a premium of 1.95 points at 1493.85 (LTP) compared with spot closing of 1491.90. The numbers of contracts traded were 23,060 (Provisional).
HDFC Bank July 2022 futures traded at a premium of 2.45 points at 1374.00 (LTP) compared with spot closing of 1371.55. The numbers of contracts traded were 22,331 (Provisional).
Among, Nifty calls, 16500 SP from the June month expiry was the most active call with an addition of 345 units open interests. Among Nifty puts, 15900 SP from the June month expiry was the most active put with a contraction of 536 units open interests. The maximum OI outstanding for Calls was at 16500 SP (47,707 units) and that for Puts was at 15000 SP (70,065 units). The respective Support and Resistance levels of Nifty are: Resistance 16,067.13 -- Pivot Point 15,934.02 -- Support -- 15,856.68.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for June month contract. The top five scrips with highest PCR on ACC (1.53), RBL Bank (1.11), Bajaj Finserv (1.07), ABC Capital (1.04) and Kotak Mahindra Bank (1.03).
Among most active underlying, Reliance Industries witnessed an addition of 1,038 units of Open Interest in the June month futures, Bajaj Finance witnessed a contraction of 299 units of Open Interest in the June month futures, HDFC Bank witnessed a contraction of 2,868 units of Open Interest in the June month futures, ICICI Bank witnessed a contraction of 1,198 units of Open Interest in the June month futures and Kotak Mahindra Bank witnessed an addition of 1,064 units of Open Interest in the June month futures contract (Provisional).
