Nifty manages to end session in green territory

Nifty managed to end the session in green territory on Wednesday. Market made negative start, as Securities and Exchange Board of India (Sebi) in its latest data showed that investment through participatory notes (P-notes) in the domestic capital market declined to Rs 75,725 crore at the end of July, the lowest level in nearly two years, mainly in the wake of aggressive rate hikes by the US Fed. This also marks the third consecutive monthly decline in investment numbers. Further, index turned volatile even after ICRA in its latest report projected India’s Gross Domestic Product (GDP) growth at 13.0% for first quarter (April-June) of current fiscal year (FY23) a sharp jump from the 4.1% in Q4 FY22. It has also projected the year-on-year (YoY) growth of the gross value added (GVA) at basic prices (at constant 2011-12 prices) in Q1 FY23 at 12.6%, a jump from 3.9% recorded in Q4 FY22. Market continued its volatile trade till the end but managed to end day’s trade above neutral line, as Governor Shaktikanta Das said that the Reserve Bank of India (RBI) aims to reduce inflation to its medium-term target of 4 per cent in the next two years and its rate actions will be data-dependent.

Most of the sectoral indices ended in green except Auto, IT and Pharma. The top gainers from the F&O segment were RBL Bank, Can Fin Homes and ABB. On the other hand, the top losers were Balrampur Chini Mills, Lupin and Mphasis. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -17200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.25% and reached 18.43. The 50 share Nifty up by 27.45 points or 0.16% to settle at 17,604.95.

Nifty August 2022 futures closed at 17609.65 (LTP) on Wednesday, at a premium of 4.70 points over spot closing of 17604.95, while Nifty September 2022 futures ended at 17694.55 (LTP), at a premium of 89.60 points over spot closing. Nifty August futures saw a contraction of 8,778 units, taking the total open interest (contracts) to 1,37,085 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 3.30 points at 2641.70 (LTP) compared with spot closing of 2645.00. The numbers of contracts traded were 39,117 (Provisional).

HDFC Bank August 2022 futures traded at a premium of 0.45 points at 1475.45 (LTP) compared with spot closing of 1475.00. The numbers of contracts traded were 27,871 (Provisional).

Infosys August 2022 futures traded at a discount of 1.20 points at 1536.80 (LTP) compared with spot closing of 1538.00. The numbers of contracts traded were 26,378 (Provisional).

Bharti Airtel August 2022 futures traded at a discount of 4.80 points at 731.45 (LTP) compared with spot closing of 736.25. The numbers of contracts traded were 23,033 (Provisional).

ICICI Bank August 2022 futures traded at a premium of 0.80 points at 873.85 (LTP) compared with spot closing of 873.05. The numbers of contracts traded were 20,951 (Provisional).

Among, Nifty calls, 17700 SP from the August month expiry was the most active call with an addition of 44,629 units open interests. Among Nifty puts, 17500 SP from the August month expiry was the most active put with an addition of 24,982 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,34,586 units) and that for Puts was at 17000 SP (2,32,995 units). The respective Support and Resistance levels of Nifty are: Resistance 17,652.65 -- Pivot Point 17,575.95 -- Support -- 17,528.25.

The Nifty Put Call Ratio (PCR) finally stood at (0.84) for August month contract. The top five scrips with highest PCR on IDFC First Bank (1.61), Eicher Motors (1.50), Asian Paints (1.36), Lupin (1.34) and Can Fin Homes (1.25).

Among most active underlying, Adani Enterprises witnessed an addition of 917 units of Open Interest in the August month futures, Reliance Industries witnessed an addition of 9,538 units of Open Interest in the August month futures, ICICI Bank witnessed a contraction of 3,856 units of Open Interest in the August month futures and HDFC Bank witnessed a contraction of 953 units of Open Interest in the August month futures (provisional).