Nifty ended volatile trading session in positive territory on Friday. India VIX was down by 1.77%. Market made slightly positive start after Foreign institutional investors (FIIs) net bought shares worth Rs 1,474.77 crore on August 4, as per provisional data available on the NSE. Further market traded volatile in positive territory, as Reserve Bank of India (RBI) raised the benchmark lending rate by 50 basis points to 5.40 per cent to tame inflation. It has also retained its FY23 gross domestic product (GDP) growth forecast at 7.2%. RBI Governor said that FPIs after remaining in exit mode in first quarter have turned positive in July. Market continued to trade above neutral line, as RBI retained its retail inflation forecast for current fiscal year at 6.7 per cent amid geopolitical developments and higher global commodity prices, hoping inflationary pressures to ease further. In last leg of trade, index trimmed most of its gains but managed to end the session in positive zone.
Traders were seen piling up positions in Bank, IT and FMCG stocks, while selling was witnessed in Auto, Metal and Media. The top gainers from the F&O segment were Manappuram Finance, Indigo and Tata Communication. On the other hand, the top losers were Crompton Greaves Consumer Electricals, GAIL and Balkrishna Industries. 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 1.77% and reached 18.92. The 50 share Nifty up by 15.50 points or 0.08% to settle at 17,397.50.
Nifty August 2022 futures closed at 17414.95 (LTP) on Friday, at a premium of 17.45 points over spot closing of 17397.50, while Nifty September 2022 futures ended at 17481.65 (LTP), at a premium of 84.15 points over spot closing. Nifty August futures saw an addition of 4,301 units, taking the total open interest (Contracts) to 2,04,178 units. The near month derivatives contract will expire on August 25, 2022 (Provisional).
From the most active contracts, SBIN August 2022 futures traded at a discount of 1.25 points at 531.10 (LTP) compared with spot closing of 532.35. The numbers of contracts traded were 31,192 (Provisional).
Reliance Industries August 2022 futures traded at a premium of 6.60 points at 2539.50 (LTP) compared with spot closing of 2532.90. The numbers of contracts traded were 30,008 (Provisional).
NMDC August 2022 futures traded at a premium of 0.60 points at 112.60 (LTP) compared with spot closing of 112.00. The numbers of contracts traded were 26,474 (Provisional).
ICICI Bank August 2022 futures traded at a discount of 1.45 points at 835.55 (LTP) compared with spot closing of 837.00. The numbers of contracts traded were 22,308 (Provisional).
Infosys August 2022 futures traded at a premium of 3.50 points at 1620.50 (LTP) compared with spot closing of 1617.00. The numbers of contracts traded were 20,322 (Provisional).
Among, Nifty calls, 17500 SP from the August month expiry was the most active call with an addition of 1,622 units open interests. Among Nifty puts, 17400 SP from the August month expiry was the most active put with an addition of 9,886 units open interests. The maximum OI outstanding for Calls was at 18000 SP (45,591 units) and that for Puts was at 16500 SP (46,722 units). The respective Support and Resistance levels of Nifty are: Resistance 17,465.02 -- Pivot Point 17,406.88 -- Support -- 17,339.37.
The Nifty Put Call Ratio (PCR) finally stood at (1.38) for August month contract. The top five scrips with highest PCR on Lupin (1.57), Asian Paints (1.45), JSW Steel (1.05), Mindtree (0.96) and Indiabulls Housing Finance (0.95).
Among most active underlying, ICICI Bank witnessed an addition of 3,443 units of Open Interest in the August month futures, SBIN witnessed an addition of 4,972 units of Open Interest in the August month futures, Reliance Industries witnessed an addition of 6,605 units of Open Interest in the August month futures, HDFC Bank witnessed an addition of 1,818 units of Open Interest in the August month futures and Titan company witnessed an addition of 412 units of Open Interest in the August month futures (Provisional).
