Nifty finished Monday’s session above 16250 mark. India VIX was down by 2.48%. Market made a positive start, as SBI Research in its latest report has said that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers' income more than doubled in FY22 from FY18 levels. Further, index continued its range bound trade after the Reserve Bank of India in its latest monthly bulletin said that the Indian economy remains resilient despite formidable global headwinds and amidst fears of a recession. The bulletin said that in spite of geopolitical spillovers, 'There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession'. Traders ignored report that country’s foreign exchange reserves declined by a massive $8.062 billion to $580.252 billion in the week ended July 8, 2022. Market continued its strength to strength trade and closed the day’s trade with the gains of over a percent.
Most of the sectoral indices ended in green except FMCG, Pharma and Healthcare. The top gainers from the F&O segment were Shriram Transport Finance Company, NBCC and LTI. On the other hand, the top losers were Container Corporation of India, Zydus Lifesciences and Laurus Labs. In the index option segment, maximum OI continues to be seen in the 16950 -17200 calls and 15350 -15600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.48% and reached 17.16. The 50 share Nifty up by 229.30 points or 1.43% to settle at 16,278.50.
Nifty July 2022 futures closed at 16312.95 (LTP) on Monday, at a premium of 34.45 points over spot closing of 16278.50, while Nifty August 2022 futures ended at 16325.00 (LTP), at a premium of 46.50 points over spot closing. Nifty July futures saw a contraction of 15,346 units, taking the total open interest (OI) to 2,23,597 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 9.00 points at 2432.00 (LTP) compared with spot closing of 2423.00. The numbers of contracts traded were 37,874 (Provisional).
HDFC Bank July 2022 futures traded at a premium of 6.35 points at 1354.55 (LTP) compared with spot closing of 1348.20. The numbers of contracts traded were 34,266 (Provisional).
Infosys July 2022 futures traded at a premium of 7.20 points at 1497.90 (LTP) compared with spot closing of 1490.70. The numbers of contracts traded were 33,935 (Provisional).
TCS July 2022 futures traded at a premium of 11.15 points at 3077.05 (LTP) compared with spot closing of 3065.90. The numbers of contracts traded were 31,037 (Provisional).
Tata Steel July 2022 futures traded at a premium of 3.40 points at 907.40 (LTP) compared with spot closing of 904.00. The numbers of contracts traded were 24,353(Provisional).
Among, Nifty calls, 16500 SP from the July month expiry was the most active call with an addition of 3,447 units open interests. Among Nifty puts, 16000 SP from the July month expiry was the most active put with an addition of 5,514 units open interests. The maximum OI outstanding for Calls was at 17000 SP (52,563 units) and that for Puts was at 15500 SP (63,388 units). The respective Support and Resistance levels of Nifty are: Resistance 16,330.23 -- Pivot Point 16,236.22 -- Support -- 16,184.48.
The Nifty Put Call Ratio (PCR) finally stood at (1.25) for July month contract. The top five scrips with highest PCR on ACC (1.69), Titan company (1.31), Kotak Mahindra Bank (1.18), RBL Bank (1.11) and Asian Paints (1.08).
Among most active underlying, HDFC Bank witnessed an addition of 3,516 units of Open Interest in the July month futures, Reliance Industries witnessed an addition of 2,862 units of Open Interest in the July month futures, Axis Bank witnessed an addition of 3,912 units of Open Interest in the July month futures, ICICI Bank witnessed an addition of 1,456 units of Open Interest in the July month futures and Infosys witnessed an addition of 1,208 units of Open Interest in the July month futures contract (Provisional).
