Nifty ended Tuesday’s session near neutral line with positive bias. India VIX was up by 5.97%. Market made negative start, as private report stated that the Reserve Bank of India will deliver two more rate increases with the first of 25-30 bps later this week. Further, index extended volatile trade in red zone after Crisil Research pegged the headline consumer price inflation to come at 6.8 per cent in FY23 - marginally higher than the Reserve Bank's 6.7 per cent estimate - because of the pressures on the food front, where the increase in prices has been double that of FY22. However, in late afternoon session, index wiped out all its losses and jumped into green zone, as finance minister Nirmala Sitharaman said India’s macroeconomic fundamentals are intact and there is no risk of the economy entering into recession or stagflation. She said the government is trying to keep inflation below 7%.Finally, Nifty managed to end the session above 17300 mark.
Most the sectoral indices ended in green except IT, Media and Metal. The top gainers from the F&O segment were Bank of Baroda, Oracle Financial Services Software and IDFC. On the other hand, the top losers were Gail, UPL and Escorts. 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 5.97% and reached 18.53. The 50 share Nifty up by 5.40 points or 0.03% to settle at 17,345.45.
Nifty August 2022 futures closed at 17315.50 (LTP) on Tuesday, at a discount of 29.95 points over spot closing of 17345.45, while Nifty September 2022 futures ended at 17383.50 (LTP), at a premium of 38.05 points over spot closing. Nifty August futures saw a contraction of 86 units, taking the total open interest (Contracts) to 2,11,713 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 discount of 1.75 points at 2573.75 (LTP) compared with spot closing of 2575.50. The numbers of contracts traded were 40,131 (Provisional).
HDFC Bank August 2022 futures traded at a premium of 4.35 points at 1429.30 (LTP) compared with spot closing of 1424.95. The numbers of contracts traded were 23,548 (Provisional).
ITC August 2022 futures traded at a premium of 1.20 points at 310.50 (LTP) compared with spot closing of 309.30. The numbers of contracts traded were 20,229 (Provisional).
SBIN August 2022 futures traded at a premium of 3.00 points at 543.00 (LTP) compared with spot closing of 540.00. The numbers of contracts traded were 19,486 (Provisional).
Infosys August 2022 futures traded at a premium of 6.35 points at 1546.25 (LTP) compared with spot closing of 1539.90. The numbers of contracts traded were 19,450 (Provisional).
Among, Nifty calls, 17500 SP from the August month expiry was the most active call with an addition of 2,774 units open interests. Among Nifty puts, 17300 SP from the August month expiry was the most active put with an addition of 11,361 units open interests. The maximum OI outstanding for Calls was at 18000 SP (41,550 units) and that for Puts was at 16500 SP (53,826 units). The respective Support and Resistance levels of Nifty are: Resistance 17,418.45 -- Pivot Point 17,317.15 -- Support -- 17,244.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.48) for August month contract. The top five scrips with highest PCR on Asian Paints (1.24), Bajaj Finance (1.05), Apollo Tyres (0.98), Indusind Bank (0.94) and Mindtree (0.90).
Among most active underlying, Reliance Industries witnessed an addition of 2,717 units of Open Interest in the August month futures, ITC witnessed an addition of 1,013 units of Open Interest in the August month futures, HDFC Bank witnessed an addition of 3,240 units of Open Interest in the August month futures, SBIN witnessed an addition of 1,979 units of Open Interest in the August month futures and ICICI Bank witnessed an addition of 931 units of Open Interest in the August month futures (Provisional).
