S&P Nifty continued its southbound journey for second day in a row on Tuesday and snapped the day’s trade with a cut of half a percentage. Market made cautious start, as foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 844.78 crore, data available with NSE suggested. Further, market enlarged its losses with Minister of State for Finance Pankaj Chaudhary stating that the Central government's total liabilities are seen rising to Rs 155.33 lakh crore in FY23. This would represent an increase of 12 percent over the FY22 figure of Rs 138.88 lakh crore. The Centre is set to borrow a record Rs 14.95 lakh crore on a gross basis from the market through the issuance of bonds in FY23. Index continued its weak trade on private report that while the monsoon in India is tracking at 11% above normal, the distribution is uneven across the country and could pose a threat to this year’s foodgrain production and may worsen the inflation outlook. In last hour of trade, index touched its intraday low point and closed the session below 16500 mark.
Most of the sectoral indices ended in red except Media. The top gainers from the F&O segment were Bajaj Finserv, Sun TV Network and NBCC. On the other hand, the top losers were Vedanta, Intellect Design Arena and Persistent Systems. In the index option segment, maximum OI continues to be seen in the 16950 -17200 calls and 15950 -16150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.77% and reached 18.17. The 50 share Nifty down by 147.15 points or 0.88% to settle at 16,483.85.
Nifty July 2022 futures closed at 16479.60 (LTP) on Tuesday, at a discount of 4.25 points over spot closing of 16483.85, while Nifty August 2022 futures ended at 16490.00 (LTP), at a premium of 6.15 points over spot closing. Nifty July futures saw a contraction of 13,164 units, taking the total open interest (Contracts) to 1,46,402 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 3.90 points at 2423.30 (LTP) compared with spot closing of 2419.40. The numbers of contracts traded were 52,782 (Provisional).
Infosys July 2022 futures traded at a discount of 2.35 points at 1448.50 (LTP) compared with spot closing of 1450.85. The numbers of contracts traded were 48,693 (Provisional).
Tata Steel July 2022 futures traded at a premium of 1.60 points at 949.55 (LTP) compared with spot closing of 947.95. The numbers of contracts traded were 40,785 (Provisional).
HDFC Bank July 2022 futures traded at a premium of 0.40 points at 1391.00 (LTP) compared with spot closing of 1390.60. The numbers of contracts traded were 34,609 (Provisional).
Asian Paints July 2022 futures traded at a premium of 9.00 points at 3114.00 (LTP) compared with spot closing of 3105.00. The numbers of contracts traded were 34,139 (Provisional).
Among, Nifty calls, 16600 SP from the July month expiry was the most active call with an addition of 69,326 units open interests. Among Nifty puts, 16500 SP from the July month expiry was the most active put with a contraction of 5,771 units open interests. The maximum OI outstanding for Calls was at 17000 SP (2,23,985 units) and that for Puts was at 16000 SP (1,28,474 units). The respective Support and Resistance levels of Nifty are: Resistance 16,592.20 -- Pivot Point 16,527.75 -- Support -- 16,419.40.
The Nifty Put Call Ratio (PCR) finally stood at (0.86) for July month contract. The top five scrips with highest PCR on Indusind Bank (1.31), Titan Company (1.25), Bank of Baroda (1.24), LTI (1.23) and MRF (1.23).
Among most active underlying, Reliance Industries witnessed an addition of 2,050 units of Open Interest in the July month futures, HDFC Bank witnessed an addition of 681 units of Open Interest in the July month futures, Axis Bank witnessed an addition of 1,086 units of Open Interest in the July month futures, Infosys witnessed an addition of 3,364 units of Open Interest in the July month futures and Asian Paints witnessed an addition of 4,286 units of Open Interest in the July month futures (Provisional).
