Nifty ended Monday’s session on flat note with negative bias. Market made negative start after private report stated that India's headline retail inflation rate is expected to be 7 percent in June, largely unchanged from 7.04 percent in May, with a sharp pick-up in vegetable prices likely nullifying the impact of the decline in prices of other food items. Further, market extended its loses with private report stating that after three consecutive quarters of raising more than $10 billion, the total funding in the Indian startup ecosystem fell by 40 percent during Q2 CY22 to reach $6.8 billion. The decline can be attributed to a global slowdown, decrease in tech stock valuations, inflation and geopolitical instability. However, in late afternoon session, index trimmed most of its losses to trade above neutral line, as RBI Governor Shaktikanta Das exuded confidence that the price situation will gradually improve in the second half of the current fiscal, and the central bank would continue to take monetary measures to anchor inflation with a view to achieving strong and sustainable growth. But, market failed to protect gains and slipped into red zone.
Most of the sectoral indices ended in green except IT. The top gainers from the F&O segment were Granules India, Nippon Life India Asset Management and Exide Industries. On the other hand, the top losers were HCL Tech, TCS and Bharti Airtel. In the index option segment, maximum OI continues to be seen in the 16900 -17100 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 0.14% and reached 18.37. The 50 share Nifty down by 4.60 points or 0.02% to settle at 16,216.00.
Nifty July 2022 futures closed at 16189.00 (LTP) on Monday, at a discount of 27.00 points over spot closing of 16216.00, while Nifty August 2022 futures ended at 16208.00 (LTP), at a discount of 8.00 points over spot closing. Nifty July futures saw a contraction of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 1,86,358 mn units. The near month derivatives contract will expire on July 28, 2022 (Provisional).
From the most active contracts, TCS July 2022 futures traded at a premium of 2.45 points at 3114.45 (LTP) compared with spot closing of 3112.00. The numbers of contracts traded were 66,430 (Provisional).
Tata Steel July 2022 futures traded at a premium of 1.10 points at 914.00 (LTP) compared with spot closing of 912.90. The numbers of contracts traded were 50,269 (Provisional).
Reliance Industries July 2022 futures traded at a premium of 1.50 points at 2423.00 (LTP) compared with spot closing of 2421.50. The numbers of contracts traded were 43,938 (Provisional).
Infosys July 2022 futures traded at a premium of 0.90 points at 1471.40 (LTP) compared with spot closing of 1470.50. The numbers of contracts traded were 25,850 (Provisional).
Bharti Airtel July 2022 futures traded at a premium of 2.20 points at 661.75 (LTP) compared with spot closing of 659.55. The numbers of contracts traded were 23,650 (Provisional).
Among, Nifty calls, 16500 SP from the June month expiry was the most active call with a contraction of 1,821 units open interests. Among Nifty puts, 16000 SP from the June month expiry was the most active put with an addition of 2,792 units open interests. The maximum OI outstanding for Calls was at 17000 SP (48,184 units) and that for Puts was at 15000 SP (70,830 units). The respective Support and Resistance levels of Nifty are: Resistance 16,271.20 -- Pivot Point 16,193.35 -- Support -- 16,138.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.30) for June month contract. The top five scrips with highest PCR on ACC (1.86), RBL Bank (1.29), Canara Bank (1.22), Kotak Mahindra Bank (1.12) and Dixon Technologies (1.05).
Among most active underlying, TCS witnessed an addition of 15,766 units of Open Interest in the June month futures, Reliance Industries witnessed a contraction of 675 units of Open Interest in the June month futures, Tata Steel witnessed an addition of 2,282 units of Open Interest in the June month futures, ICICI Bank witnessed an addition of 3,024 units of Open Interest in the June month futures contract and Bharti Airtel witnessed an addition of 5,940 units of Open Interest in the June month futures contract (Provisional).
