Nifty ended the last trading day of week with the gain of above half a percent. Market made positive start, as Economic Affairs Secretary Ajay Seth said the measures taken by Reserve Bank of India (RBI) will increase inflows of overseas funds and help in strengthening the rupee against the US dollar. Further, market added more points with a private report stating that roles in Indian research and development (R&D) increased 42 per cent in the last three years. Job postings in R&D also grew by over 40 per cent between May 2020 and 2021. Among job seekers, searches for roles in R&D increased 21 per cent in the last three years. Index continued above neutral line trade till the end, as Finance Minister Nirmala Sitharaman urged public sector banks to ensure smooth flow of credit to Kisan Credit Card (KCC) holders to boost rural incomes. Finally, Nifty closed the day’s trade above 16200 mark.
Most of the sectoral indices ended in green except Metal and Realty. The top gainers from the F&O segment were India Cements, SRF and L&T. On the other hand, the top losers were Bandhan Bank, NBCC and Torrent Pharmaceuticals. 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 4.20% and reached 18.40. The 50 share Nifty up by 87.70 points or 0.54% to settle at 16,220.60.
Nifty July 2022 futures closed at 16233.35 (LTP) on Friday, at a premium of 12.75 points over spot closing of 16220.60, while Nifty August 2022 futures ended at 16245.00, at a premium of 24.40 points over spot closing. Nifty July futures saw a contraction of 1,407 units, taking the total open interest (OI) to 2,29,118 units. The near month derivatives contract will expire on July 28, 2022.
From the most active contracts, Reliance Industries July 2022 futures traded at a premium of 7.65 points at 2398.65 (LTP) compared with spot closing of 2391.00. The numbers of contracts traded were 35,725.
L&T July 2022 futures traded at a discount of 18.50 points at 1667.20 (LTP) compared with spot closing of 1685.70. The numbers of contracts traded were 28,762.
Tata Steel July 2022 futures traded at a premium of 1.80 points at 887.05 (LTP) compared with spot closing of 885.25. The numbers of contracts traded were 26,489.
Tata Motors July 2022 futures traded at a premium of 1.80 points at 442.30 (LTP) compared with spot closing of 440.50. The numbers of contracts traded were 25,803.
TCS July 2022 futures traded flat compared with spot closing of 3266.00. The numbers of contracts traded were 23,121.
Among, Nifty calls, 16500 SP from the June month expiry was the most active call with an addition of 2,764 units open interests. Among Nifty puts, 16000 SP from the June month expiry was the most active put with an addition of 1,145 units open interests. The maximum OI outstanding for Calls was at 16500 SP (45,996 units) and that for Puts was at 15000 SP (72,264 units). The respective Support and Resistance levels of Nifty are: Resistance 16,278.10 -- Pivot Point 16,218.00 -- Support -- 16,160.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.33) for June month contract. The top five scrips with highest PCR on ACC (1.57), RBL Bank (1.25), Kotak Mahindra Bank (1.19), Dixon Technologies (1.18) and Canara Bank (1.10).
Among most active underlying, Reliance Industries witnessed an addition of 1,791 units of Open Interest in the June month futures, Tata Motors witnessed an addition of 2,111 units of Open Interest in the June month futures, HDFC Bank witnessed an addition of 2,909 units of Open Interest in the June month futures, M&M witnessed an addition of 2,071 units of Open Interest in the June month futures and ICICI Bank witnessed an addition of 1,734 units of Open Interest in the June month futures contract (Provisional).
