Indian equity benchmark -- Nifty -- ended with gains of 0.22% on Friday’s trading session. The start of the day was on a cautious note, as Credit rating agency ICRA noted that risks have emerged on account of the flagging external demand and rising uncertainty amidst a global slowdown, which could curtail India’s exports and defer the anticipated broad-basing of private capex activity.
There was a volatility in the market but index managed to trade above its neutral line for the most part of the trading session, as traders got support amid reports that start-ups have been the buzzword in India for the last several years. India is powering its growth with innovation and entrepreneurship. Currently, there are 75,000 start-ups in the country, which coincides with the 75th year of independence.
Some support came with a private report that India will be the fastest growing major economy this year and the next despite headwinds from rising inflation, widening trade deficit and a declining rupee. It added that the 7 per cent decline in rupee value against the US dollar this year was not worrisome, and the government and RBI are confident of managing the situation.
Traders were seen piling up positions in Metal, Realty and Fin Service stocks, while selling was witnessed in Media, IT and Pharma. The top gainers from the F&O segment were BHARAT FORGE, Indraprastha Gas and ONGC. On the other hand, the top losers were IPCA Laboratories, Divi's Laboratories and HDFC Asset Management Company. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16400 -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 4.07% and reached 17.60. The 50 share Nifty up by 39.15 points or 0.22% to settle at 17,698.15.
Nifty August 2022 futures closed at 17716.90 (LTP) on Friday, at a premium of 18.75 points over spot closing of 17698.15, while Nifty September 2022 futures ended at 17780.00 (LTP), at a premium of 81.85 points over spot closing. Nifty May futures saw an addition of 5,411 units, taking the total open interest (OI) to 2,19,049 units. The near month derivatives contract will expire on May 26, 2022. (Provisional)
From the most active contracts, Reliance Industries August 2022 futures traded at a premium of 2.00 points at 2634.00 (LTP) compared with spot closing of 2632.00. The numbers of contracts traded were 41,169. (Provisional)
Infosys August 2022 futures traded at a premium of 1.40 points at 1595.15 (LTP) compared with spot closing of 1593.75. The numbers of contracts traded were 23,282. (Provisional)
Divi's Lab August 2022 futures traded at a premium of 5.85 points at 3726.95 (LTP) compared with spot closing of 3721.10. The numbers of contracts traded were 23,188. (Provisional)
Tata Steel August 2022 futures traded at a premium of 0.25 points at 113.05 (LTP) compared with spot closing of 112.80. The numbers of contracts traded were 21,800. (Provisional)
Tata Chemicals August 2022 futures traded at a premium of 5.60 points at 1122.60 (LTP) compared with spot closing of 1117.00. The numbers of contracts traded were 17,748. (Provisional)
Among, Nifty calls, 17600 SP from the August month expiry was the most active call with an addition of 7,896 units open interests. Among Nifty puts, 17600 SP from the August month expiry was the most active put with an addition of 7,896 units open interests. The maximum OI outstanding for Calls was at 18000 SP (51,434 units) and that for Puts was at 16500 SP (54,770 units). The respective Support and Resistance levels of Nifty are: Resistance 17,749.25 -- Pivot Point 17,673.55 -- Support -- 17,622.45.
The Nifty Put Call Ratio (PCR) finally stood at (1.39) for August month contract. The top five scrips with highest PCR on Lupin (1.54), ICICI Bank (1.36), Asian Paints (1.28), Adani Enterprises (1.06), Apollo Tyres (0.97).
Among most active underlying, Reliance Industries witnessed an addition of 1,715 units of Open Interest in the August month futures, ICICI Bank witnessed an addition of 4,908 units of Open Interest in the August month futures, Tata Chemicals witnessed an addition of 1,172 units of Open Interest in the August month futures, Divi's Laboratories witnessed an addition of 5,626 units of Open Interest in the August month futures and HDFC Bank witnessed an addition of 1,378 units of Open Interest in the August month futures (Provisional).
