Nifty ends lower amid profit booking

After spending most of the time in green zone, the local benchmark -- Nifty -- ended Thursday’s session below 17550 mark. Market started day on positive note, as RBI Monetary Policy Committee (MPC) Member Ashima Goyal has said that eight years of systemic economic reforms under the Modi government have increased India's macroeconomic stability and its capacity to withstand any external shocks. Besides, as per the latest ASSOCHAM- D&B Small Business Confidence Index, with pick-up in demand, as many as 80 per cent of the Small and Medium Enterprises (SMEs) anticipate increase in their domestic order book in third quarter of calendar year, sequential improvement of five percentage points from the second quarter, leading to rise in the sales revenue. In afternoon deals, index continued to trade in green zone however, in last leg of trade market failed to hold gains and slipped into negative territory amid reports that India’s business and consumption activity showed conflicting signs of recovery in July as elevated inflation, rising borrowing costs and fears of a global slowdown weighed on Asia’s third-largest economy. Finally, Nifty closed the session in below neutral line.

Most of the sectoral indices ended in red except PSU Bank, Realty and Consumer Durables. The top gainers from the F&O segment were BHEL, City Union Bank and L&TFH. On the other hand, the top losers were Adani Ports, Nippon Life India Asset Management and Coromandel International. 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 increased by 6.18% and reached 19.57. The 50 share Nifty down by 82.50 points or 0.47% to settle at 17,522.45.

Nifty September 2022 futures closed at 17570.00 (LTP) on Thursday, at a premium of 47.55 points over spot closing of 17522.45, while Nifty October 2022 futures ended at 17630.80 (LTP), at a premium of 108.35 points over spot closing. Nifty September futures saw an addition of 52,357 units, taking the total open interest (contracts) to 2,20,615 units. The near month derivatives contract will expire on September 29, 2022 (Provisional).

From the most active contracts, Reliance Industries September 2022 futures traded at a premium of 13.20 points at 2641.20 (LTP) compared with spot closing of 2628.00. The numbers of contracts traded were 56,753 (Provisional).

Infosys September 2022 futures traded at a premium of 6.50 points at 1526.50 (LTP) compared with spot closing of 1520.00. The numbers of contracts traded were 45,282 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 6.35 points at 1469.30 (LTP) compared with spot closing of 1462.95. The numbers of contracts traded were 34,031 (Provisional).

TCS September 2022 futures traded at a premium of 21.00 points at 3239.00 (LTP) compared with spot closing of 3218.00. The numbers of contracts traded were 29,717 (Provisional).

Tata Steel September 2022 futures traded at a premium of 0.35 points at 106.85 (LTP) compared with spot closing of 106.50. The numbers of contracts traded were 28,776 (Provisional).

Among, Nifty calls, 17700 SP from the September month expiry was the most active call with an addition of 11,630 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 5,141 units open interests. The maximum OI outstanding for Calls was at 18000 SP (37,199 units) and that for Puts was at 17000 SP (50,020 units). The respective Support and Resistance levels of Nifty are: Resistance 17,670.15 -- Pivot Point 17,578.80 -- Support -- 17,431.10.
 
The Nifty Put Call Ratio (PCR) finally stood at (1.53) for September month contract. The top five scrips with highest PCR on IPCA Laboratories (1.27), Gujarat State Petronet (1.06), Asian Paints (1.03), Balkrishna Industries (0.89) and RBL Bank (0.88).

Among most active underlying, Reliance Industries witnessed an addition of 25,438 units of Open Interest in the September month futures, Adani Enterprises witnessed an addition of 7,320 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 15,014 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 8,936 units of Open Interest in the September month futures and Infosys witnessed an addition of 28,842 units of Open Interest in the September month futures (provisional).