Nifty ends higher on Tuesday

Nifty ended Tuesday’s session with gain of half a percent. After making negative start, soon market entered into green zone for little time with a private report stating that the Centre may release about Rs 30,000 crore soon as GST (goods and services tax) compensation for June 2022, the last month of the five-year guaranteed compensation pledged by the Union government. However, index slipped into red zone to trade marginally lower, as as a recent study by the Reserve Bank of India (RBI) shows project loan demand by Indian companies for capex in 2021-22 (FY22) did not pick up like it did in the preceding years. But in late afternoon session, index trimmed all its losses to trade above neutral line amid a private report stating that the Reserve Bank's rate setting panel is likely to opt for slowing down the pace of hikes and increase the repo rate by 0.25 per cent in September. The central bank has already hiked the repo rate by 1.40 per cent in three consecutive actions since May this year, in response to the uncomfortably high inflation which has been consistently breaching upper end of the tolerance band set by the government to the RBI. Finally, Nifty closed the day’s trade above 17550 mark.

Most of the sectoral indices ended in green except IT. The top gainers from the F&O segment were NMDC, IDFC First Bank and RBL Bank. On the other hand, the top losers were Infosys, SUN TV and Mphasis. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 17400 -17600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 0.06% and reached 19.05. The 50 share Nifty down by 86.80 points or 0.50% to settle at 17,577.50.

Nifty August 2022 futures closed at 17641.60 (LTP) on Tuesday, at a premium of 64.10 points over spot closing of 17577.50, while Nifty September 2022 futures ended at 17719.40 (LTP), at a premium of 141.90 points over spot closing. Nifty August futures saw an addition of 17,322 units, taking the total open interest (Contracts) to 1,94,531 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 1.00 points at 2650.00 (LTP) compared with spot closing of 2649.00. The numbers of contracts traded were 46,323 (Provisional).

Infosys August 2022 futures traded at a premium of 3.60 points at 1551.80 (LTP) compared with spot closing of 1548.20. The numbers of contracts traded were 40,526 (Provisional).

HDFC Bank August 2022 futures traded at a premium of 1.90 points at 1473.40 (LTP) compared with spot closing of 1471.50. The numbers of contracts traded were 36,360 (Provisional).

TCS August 2022 futures traded at a premium of 11.80 points at 3312.95 (LTP) compared with spot closing of 3301.15. The numbers of contracts traded were 30,121 (Provisional).

ICICI Bank August 2022 futures traded at a premium of 2.20 points at 869.25 (LTP) compared with spot closing of 867.05. The numbers of contracts traded were 27,876 (Provisional).

Among, Nifty calls, 17700 SP from the August month expiry was the most active call with a contraction of 19,992 units open interests. Among Nifty puts, 17500 SP from the August month expiry was the most active put with an addition of 56,371 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,48,534  units) and that for Puts was at 17500 SP (1,65,006 units). The respective Support and Resistance levels of Nifty are: Resistance 17,686.97 -- Pivot Point 17,516.08 -- Support -- 17,406.62.

The Nifty Put Call Ratio (PCR) finally stood at (0.86) for August month contract. The top five scrips with highest PCR on Lupin (1.36), Eicher Motors (1.23), IDFC First Bank (1.23), HPCL (1.03) and Asian Paints (1.02).

Among most active underlying, Adani Enterprises witnessed a contraction of 629 units of Open Interest in the August month futures, ICICI Bank witnessed an addition of 1,183 units of Open Interest in the August month futures, Reliance Industries witnessed an addition of 4,967 units of Open Interest in the August month futures, HDFC Bank witnessed a contraction of 33 units of Open Interest in the August month futures and Adani Ports witnessed an addition of 3,276 units of Open Interest in the August month futures(Provisional).