After trading below neutral line most of the time, Nifty closed the Wednesday’s session above 17350 mark. India VIX was down by 0.43%. Market made cautious start, as India’s trade deficit widened to a record $31 billion in July with a sequential decline in exports and somewhat flat imports owing to growing recessionary trends in developed economies and elevated commodity prices. The data released by the commerce ministry showed merchandise exports declined to a five-month low at $35.2 billion in July while imports eased sequentially to $66 billion. Further, index slipped into red zone and continued its weak trade, as India's services sector lost momentum in July as demand was curtailed by competitive pressures, elevated inflation and unfavourable weather. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 59.2 in June to 55.5 in July, pointing to the slowest rate of growth in four months. However, in late afternoon session, market trimmed all of its losses and entered into green zone as traders took support after Finance Minister Nirmala Sitharaman has asserted that there is no collapse of the unit and it is actually finding its natural course. She said the RBI is continuously monitoring the local currency and intervening only if there is volatility.
Most the sectoral indices ended in red except IT and Oil& Gas. The top gainers from the F&O segment were Nippon Life India Asset Management, ATUL and BSOFT. On the other hand, the top losers were Siemens, Balrampur Chini Mills and Indus Towers. 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 decreased by 0.43% and reached 18.45. The 50 share Nifty up by 42.70 points or 0.25% to settle at 17,388.15.
Nifty August 2022 futures closed at 17424.00 (LTP) on Wednesday, at a premium of 35.85 points over spot closing of 17388.15, while Nifty September 2022 futures ended at 17488.00 (LTP), at a premium of 99.85 points over spot closing. Nifty August futures saw a contraction of 7,005 units, taking the total open interest (contracts) to 1,99,898 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 2.10 points at 2604.10 (LTP) compared with spot closing of 2606.20. The numbers of contracts traded were 31,015 (Provisional).
SBIN August 2022 futures traded at a premium of 1.30 points at 541.80 (LTP) compared with spot closing of 540.50. The numbers of contracts traded were 26,232 (Provisional).
Infosys August 2022 futures traded at a premium of 3.90 points at 1573.80 (LTP) compared with spot closing of 1569.90. The numbers of contracts traded were 21,763 (Provisional).
Tata Motors August 2022 futures traded at a premium of 2.05 points at 469.10 (LTP) compared with spot closing of 467.05. The numbers of contracts traded were 21,399 (Provisional).
TCS August 2022 futures traded at a premium of 9.15 points at 3346.15 (LTP) compared with spot closing of 3337.00. The numbers of contracts traded were 18,398 (Provisional).
Among, Nifty calls, 18000 SP from the August month expiry was the most active call with an addition of 2,003 units open interests. Among Nifty puts, 17300 SP from the August month expiry was the most active put with an addition of 1,201 units open interests. The maximum OI outstanding for Calls was at 18000 SP (43,562 units) and that for Puts was at 16500 SP (45,379 units). The respective Support and Resistance levels of Nifty are: Resistance 17,455.15 -- Pivot Point 17,340.50 -- Support -- 17,273.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.44) for August month contract. The top five scrips with highest PCR on Asian Paints (1.39), Apollo Tyres (0.95), Bajaj Finance (0.94), Indusind Bank (0.91) and JSW Steel (0.85).
Among most active underlying, SBIN witnessed an addition of 3,092 units of Open Interest in the August month futures, Reliance Industries witnessed a contraction of 12 units of Open Interest in the August month futures, Tata Motors witnessed a contraction of 666 units of Open Interest in the August month futures, ICICI Bank witnessed an addition of 111 units of Open Interest in the August month futures and HDFC Bank witnessed an addition of 187 units of Open Interest in the August month futures (Provisional).
