Nifty ended the day’s trade near intraday high point on Monday. Market made positive start, as after nine consecutive months of relentless selling, foreign investors have turned net buyers and invested nearly Rs 5,000 crore in Indian equities in July on softening dollar index and good corporate earnings. Further, market added more points, as the output of eight core infrastructure sectors expanded by 12.7 per cent in June 2022 as against 9.4 per cent in the year-ago period, with all sectors except crude oil registering an uptick in production. The production growth of eight infrastructure sectors was 19.3 per cent in May 2022. Market continued to trade firm in afternoon trade, as India's manufacturing sector activity gained momentum in July, hitting an eight-month high driven by a significant uptick in business orders. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index rose from 53.9 in June, to 56.4 in July, highlighting the strongest improvement in the health of the sector in eight months. Index traded strength to strength till the end after finance ministry said that India collected Rs 1.49 lakh crore as Goods and Services Tax (GST) in July, posting an increase of 28 percent from the same month last year. Compared to the money collected in June, the July GST mop-up was 3 percent higher. Finally, Nifty closed the day’s trade above 17300 mark.
Most the sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were IDFC First Bank, Rain and Tata Motors. On the other hand, the top losers were Sun Pharma, GMR Infra and MCX. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 15450 -16600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 5.64% and reached 17.49. The 50 share Nifty up by 181.80 points or 1.06% to settle at 17,340.05.
Nifty August 2022 futures closed at 17370.50 (LTP) on Monday, at a premium of 30.45 points over spot closing of 17340.05, while Nifty September 2022 futures ended at 17433.00 (LTP), at a premium of 92.95 points over spot closing. Nifty August 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 August 25, 2022 (Provisional).
From the most active contracts, Reliance Industries August 2022 futures traded at a premium of 2.60 points at 2571.60 (LTP) compared with spot closing of 2569.00. The numbers of contracts traded were 48,720 (Provisional).
Tata Motors August 2022 futures traded at a premium of 2.20 points at 482.25 (LTP) compared with spot closing of 480.05. The numbers of contracts traded were 36,195 (Provisional).
Tata Steel August 2022 futures traded flat with spot closing of 108.25. The numbers of contracts traded were 21,044 (Provisional).
M&M August 2022 futures traded at a premium of 10.25 points at 1244.75 (LTP) compared with spot closing of 1234.50. The numbers of contracts traded were 19,434 (Provisional).
HDFC Bank August 2022 futures traded at a premium of 5.20 points at 1448.10 (LTP) compared with spot closing of 1442.90. The numbers of contracts traded were 19,213 (Provisional).
Among, Nifty calls, 17500 SP from the August month expiry was the most active call with an addition of 1,426 units open interests. Among Nifty puts, 17000 SP from the August month expiry was the most active put with an addition of 9,802 units open interests. The maximum OI outstanding for Calls was at 18000 SP (43,112 units) and that for Puts was at 16500 SP (53,486 units). The respective Support and Resistance levels of Nifty are: Resistance 17,412.60 -- Pivot Point 17,283.70 -- Support -- 17,211.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.49) for August month contract. The top five scrips with highest PCR on Asian Paints (1.17), UBL (1.07), Apollo Tyres (1.05), Bajaj Finance (0.99) and Mindtree (0.96).
Among most active underlying, Reliance Industries witnessed a contraction of 1,312 units of Open Interest in the August month futures, Tata Motors witnessed an addition of 1,074 units of Open Interest in the August month futures, UPL witnessed an addition of 2,096 units of Open Interest in the August month futures, M&M witnessed an addition of 1,744 units of Open Interest in the August month futures and Maruti Suzuki witnessed an addition of 708 units of Open Interest in the August month futures (Provisional).
