Nifty witnesses dull trade on Thursday

Nifty witnessed dull trade on weekly F&O expiry day. India VIX was up by 6.27%. Market made negative start, as the data of the Department for Promotion of Industry and Internal Trade (DPIIT) showed that Foreign Direct Investment (FDI) equity inflows into India contracted by 6% to $16.59 billion during the April-June quarter this fiscal. Further, index continued its weak trade, as Moody’s Investors Service has lowered its gross domestic product (GDP) growth forecast for India to 7.7 percent for the calendar year 2022 (CY22). The global credit rating agency also lowered India's GDP forecast for CY23 to 5.2 percent from 5.4 percent. Market participants failed to take any support after India collected Rs 1.44 lakh crore in Goods and Services Tax (GST) in August, registering an increase of 28 percent from the mop-up a year back. In afternoon trade, market added more losses with the Reserve Bank data showed India Inc's foreign direct investment in July declined over 50 per cent to $1.11 billion in July 2022. Finally, Nifty closed the day’s trade below 17550 mark. 

Most of the sectoral indices ended in red except Auto, Media and Realty. The top gainers from the F&O segment were GMR Infra, Tata Communication and Ashok Leyland. On the other hand, the top losers were National Aluminium Company, Hindalco Industries and ZEEL. 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 6.27% and reached 19.87. The 50 share Nifty down by 216.50 points or 1.22% to settle at 17,542.80.

Nifty September 2022 futures closed at 17620.00 (LTP) on Thursday, at a premium of 77.20 points over spot closing of 17542.80, while Nifty October 2022 futures ended at 17670.70 (LTP), at a premium of 127.90 points over spot closing. Nifty September futures saw an addition of 27,222 units, taking the total open interest (contracts) to 2,59,479 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 12.55 points at 2576.55 (LTP) compared with spot closing of 2564.00. The numbers of contracts traded were 53,456 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 5.10 points at 1476.10 (LTP) compared with spot closing of 1471.00. The numbers of contracts traded were 38,759 (Provisional).

Infosys September 2022 futures traded at a premium of 2.10 points at 1469.10 (LTP) compared with spot closing of 1467.00. The numbers of contracts traded were 29,473 (Provisional).

ICICI Bank September 2022 futures traded at a premium of 4.55 points at 880.00 (LTP) compared with spot closing of 875.45. The numbers of contracts traded were 21,771 (Provisional).

TCS September 2022 futures traded at a premium of 15.90 points at 3151.90 (LTP) compared with spot closing of 3136.00. The numbers of contracts traded were 20,408 (Provisional).

Among, Nifty calls, 18000 SP from the September month expiry was the most active call with an addition of 2,830 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 10,309 units open interests. The maximum OI outstanding for Calls was at 18000 SP (45,082 units) and that for Puts was at 16000 SP (78,426 units). The respective Support and Resistance levels of Nifty are: Resistance 17,669.45 -- Pivot Point 17,568.95 -- Support -- 17,442.30.

The Nifty Put Call Ratio (PCR) finally stood at (1.39) for September month contract. The top five scrips with highest PCR on Asian Paints (0.96), Bank of Baroda (0.94), Ashok Leyland (0.93), Abbott India (0.91) and ABB (0.89).

Among most active underlying, Reliance Industries witnessed an addition of 19,462 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 6,524 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 379 units of Open Interest in the September month futures, Adani Enterprises witnessed an addition of 524 units of Open Interest in the September month futures and Bajaj Finserv witnessed an addition of 2611 units of Open Interest in the September month futures (provisional).