Continuing its upward journey for the sixth consecutive session, Nifty closed the day’s trade above 16700 mark. Market made positive start, as Foreign institutional investors (FIIs) have net purchased shares worth Rs 1,799.32 crore, continuing buying for the fourth consecutive session on July 21, as per provisional data available on the NSE. Further, index trimmed its gains, as the FICCI’s quarterly survey showed that the Indian economy is expected to expand 7% in fiscal 2022/23, slower than a previous estimate of 7.4% and the central bank's 7.2% projection. The survey said the war in Ukraine is likely to keep inflation high and dent consumer demand. But, in afternoon trade, market added more points after Reserve Bank Governor Shaktikanta Das said the rupee is holding up relatively well when compared to the currencies of emerging market peers and advanced economies. He said RBI has been supplying US dollars to the market to ensure an adequate supply of liquidity to the market and also clarified that the central bank does not target a particular level for the currency. In late afternoon session, index traded at day’s high point, as Reserve Bank of India (RBI) Governor Shaktikanta Das said that the RBI was confident of achieving its growth-inflation aim of ensuring a soft landing for the economy, 'where inflation is brought down closer to the target of 4 percent over a period of time. At the same time, the growth sacrifice is within manageable limits'. Finally, Nifty closed the day’s trade with gain of above half a percent.
Most of the sectoral indices ended in green except IT, Pharma and Healthcare. The top gainers from the F&O segment were Atul, UltraTech Cement and Gujarat State Petronet. On the other hand, the top losers were RBL Bank, IndiaMART InterMESH and Syngene International. In the index option segment, maximum OI continues to be seen in the 16950 -17200 calls and 16350 -16600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.23% and reached 16.65. The 50 share Nifty up by 114.20 points or 0.69% to settle at 16,719.45.
Nifty July 2022 futures closed at 16722.50 (LTP) on Friday, at a premium of 3.05 points over spot closing of 16719.45, while Nifty August 2022 futures ended at 16730.40 (LTP), at a premium of 10.95 points over spot closing. Nifty July futures saw a contraction of 4,396 units, taking the total open interest (contracts) to 1,94,570 units. The near month derivatives contract will expire on July 28, 2022 (Provisional).
From the most active contracts, Infosys July 2022 futures traded at a discount of 2.70 points at 1503.30 (LTP) compared with spot closing of 1506.00. The numbers of contracts traded were 47,179 (Provisional).
HDFC Bank July 2022 futures traded at a premium of 2.00 points at 1396.40 (LTP) compared with spot closing of 1394.40. The numbers of contracts traded were 41,155 (Provisional).
Reliance Industries July 2022 futures traded at a discount of 0.95 points at 2502.00 (LTP) compared with spot closing of 2502.95. The numbers of contracts traded were 35,481 (Provisional).
UltraTech Cement July 2022 futures traded at a premium of 16.95 points at 6448.15 (LTP) compared with spot closing of 6431.20. The numbers of contracts traded were 27,803 (Provisional).
TCS July 2022 futures traded at a premium of 4.60 points at 3175.75 (LTP) compared with spot closing of 3171.15. The numbers of contracts traded were 21,293 (Provisional).
Among, Nifty calls, 17000 SP from the July month expiry was the most active call with an addition of 36,338 units open interests. Among Nifty puts, 16600 SP from the July month expiry was the most active put with an addition of 57,128 units open interests. The maximum OI outstanding for Calls was at 17000 SP (1,24,562 units) and that for Puts was at 16500 SP (1,55,739 units). The respective Support and Resistance levels of Nifty are: Resistance 16,777.50 -- Pivot Point 16,694.20 -- Support -- 16,636.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for July month contract. The top five scrips with highest PCR on LTI (1.44), ACC (1.39), Titan Company (1.32), Asian Paints (1.29) and Bajaj Finserv (1.27).
Among most active underlying, HDFC Bank witnessed an addition of 4,321 units of Open Interest in the July month futures, Reliance Industries witnessed a contraction of 214 units of Open Interest in the July month futures, ICICI Bank witnessed an addition of 2,913 units of Open Interest in the July month futures, UltraTech Cement witnessed an addition of 3,416 units of Open Interest in the July month futures and Adani Enterprises witnessed a contraction of 299 units of Open Interest in the July month futures (Provisional).
