Wednesday turned out to be another great day for the Nifty, Indian equity benchmark, on the back of positive cues from the global markets along with sustained buying by FIIs. Foreign Institutional Investors (FII) were net buyers for the second day running on Dalal Street. FIIs pumped in Rs 976 crore on July 19. Domestic sentiments remained upbeat with the commerce and industry ministry stating that foreign direct investment (FDI) inflows in the research and development sector have increased to $343.64 million in 2021 against $55.77 million in 2020.
Firm trade continued over the street during the entire trading session and finally Nifty ended in green terrain, aided with Finance ministry’s statement that the economy is on course to achieve projected 8-8.5 per cent growth based on high-frequency indicators for the first quarter of the current fiscal. Traders got some support from Economic Affairs Secretary Ajay Seth’s statement that the rupee is managed well and there is nothing to be 'overtly' worried about the depreciation in the domestic currency against the US dollar.
Most of the sectoral indices ended in green except Media, Auto and Realty. The top gainers from the F&O segment were L&T Technology Services, Vedanta and Persistent Systems. On the other hand, the top losers were ICICI Lombard General Insurance, Havells India and Hindpetro. In the index option segment, maximum OI continues to be seen in the 16950 -17200 calls and 15900 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.20% and reached 16.82. The 50 share Nifty up by 180.30 points or 1.10% to settle at 16,520.85.
Nifty July 2022 futures closed at 16494.50 (LTP) on Wednesday, at a discount of 26.35 points over spot closing of 16520.85, while Nifty August 2022 futures ended at 16506.00 (LTP), at a discount of 14.85 points over spot closing. Nifty July futures saw a contraction of 11,694 units, taking the total outstanding open interest (OI) to 2,07,760 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 2.20 points at 2501.20 (LTP) compared with spot closing of 2499.00. The numbers of contracts traded were 65,092 (Provisional).
Infosys July 2022 futures traded at a premium of 1.45 points at 1513.45 (LTP) compared with spot closing of 1512.00. The numbers of contracts traded were 31,439 (Provisional).
Vedanta July 2022 futures traded at a premium of 0.45 points at 253.15 (LTP) compared with spot closing of 252.70. The numbers of contracts traded were 29,340 (Provisional).
TCS July 2022 futures traded at a premium of 0.10 points at 3161.10 (LTP) compared with spot closing of 3161.00. The numbers of contracts traded were 29,256 (Provisional).
Wipro July 2022 futures traded at a discount of 0.50 points at 411.20 (LTP) compared with spot closing of 411.70. The numbers of contracts traded were 28,078 (Provisional).
Among, Nifty calls, 16300 SP from the July month expiry was the most active call with a contraction of 12,900 units open interests. Among Nifty puts, 16500 SP from the July month expiry was the most active put with an addition of 26,096 units open interests. The maximum OI outstanding for Calls was at 17000 SP (63,272 units) and that for Puts was at 16000 SP (74,123 units). The respective Support and Resistance levels of Nifty are: Resistance 16,575.58 -- Pivot Point 16,533.27 -- Support -- 16,478.53.
The Nifty Put Call Ratio (PCR) finally stood at (1.30) for July month contract. The top five scrips with highest PCR on ACC (1.56), LTI (1.43), Titan Company (1.38), Mindtree (1.26) and Asian Paints (1.20).
Among most active underlying, Reliance Industries witnessed a contraction of 1,226 units of Open Interest in the July month futures, Hindustan Unilever witnessed an addition of 817 units of Open Interest in the July month futures, HDFC Bank witnessed a contraction of 629 units of Open Interest in the July month futures and Infosys witnessed an addition of 6,869 units of Open Interest in the July month futures (Provisional).
