Nifty resumes southward journey on Monday

Nifty ended Monday’s session below 17350 mark amid weak global cues and huge selling pressure on IT stocks. Market made pessimistic start, as Reserve Bank of India (RBI) data showed that the country's foreign exchange reserves fell $6.687 billion to $564.053 billion in the week ended August 19. In the previous week ended August 12, the reserves declined $2.238 billion to $570.74 billion. Further, index extended its losses, as Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra has said that in the near-term, inflation trajectory continues to be ‘heavily contingent’ upon the evolving geopolitical developments, international commodity prices and global financial sector developments.  Market continued its weak trade till the end, as US Federal Reserve Chair Jerome Powell’s signal that the central bank will raise interest rates further to battle inflation. Finally, Nifty closed the day’s trade over a percent. 

Most of the sectoral indices ended in red except FMCG and Oil&Gas. The top gainers from the F&O segment were Indian Cement, Escorts Kubota and Colgate-Palmolive (India). On the other hand, the top losers were City Union Bank, Tech Mahindra and Info Edge (India). In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 15900 -16100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 8.82% and reached 19.82. The 50 share Nifty down by 246.00 points or 1.40% to settle at 17,312.90.

Nifty September 2022 futures closed at 17384.00 (LTP) on Monday, at a premium of 71.10 points over spot closing of 17312.90, while Nifty October 2022 futures ended at 17441.05 (LTP), at a premium of 128.15 points over spot closing. Nifty September futures saw an addition of 13,146 units, taking the total open interest (contracts) to 2,24,821 units. The near month derivatives contract will expire on September 29, 2022 (provisional).

From the most active contracts, TCS September 2022 futures traded at a premium of 15.05 points at 3146.95 (LTP) compared with spot closing of 3131.90. The numbers of contracts traded were 2,577 (provisional).

Reliance Industries September 2022 futures traded at a discount of 18.00 points at 2609.00 (LTP) compared with spot closing of 2627.00. The numbers of contracts traded were 2,484 (provisional).

Infosys September 2022 futures traded at a premium of 5.65 points at 1466.55 (LTP) compared with spot closing of 1460.90. The numbers of contracts traded were 2,284 (provisional).

HDFC Bank September 2022 futures traded at a premium of 8.00 points at 1450.00 (LTP) compared with spot closing of 1442.00. The numbers of contracts traded were 1,527(provisional).

ICICI Bank September 2022 futures traded at a premium of 6.15 points at 861.95 (LTP) compared with spot closing of 855.80. The numbers of contracts traded were 1,523 (provisional).

Among, Nifty calls, 17500 SP from the September month expiry was the most active call with an addition of 4,196 units open interests. Among Nifty puts, 17300 SP from the September month expiry was the most active put with an addition of 10,935 units open interests. The maximum OI outstanding for Calls was at 18000 SP (37,632 units) and that for Puts was at 16000 SP (72,270 units). The respective Support and Resistance levels of Nifty are: Resistance 17,406.63 -- Pivot Point 17,286.42 -- Support -- 17,192.68.

The Nifty Put Call Ratio (PCR) finally stood at (1.46) for September month contract. The top five scrips with highest PCR on Intellect Design Arena (1.22), RBL Bank (0.94), Asian Paints (0.93), Whirlpool Of India (0.83) and Biocon (0.80).

Among most active underlying, Reliance Industries witnessed an addition of 2,127 units of Open Interest in the September month futures, Adani Enterprises witnessed an addition of 146 units of Open Interest in the September month futures, Infosys witnessed an addition of 5,172 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 502 units of Open Interest in the September month futures (provisional).