Nifty ends near neutral line with negative bias

Nifty ended Friday’s session near neutral line with negative bias. Market made positive start with the Reserve Bank of India (RBI) in its latest monthly data on India’s International Trade in Services showed that the country’s services exports increased by 20.2 per cent year-on-year to $23.26 billion in July 2022. However, the July exports were lower than $25.29 billion in June this fiscal. Further, index turned volatile, as chief economist at State Bank of India revised downward the full-year growth forecast to a low 6.8 per cent from 7.5 per cent earlier for FY2023, citing the way below GDP numbers for the first quarter. In afternoon trade, market added points to trade higher after Apparel Export Promotion Council (AEPC) in its latest report has showed that apparel exports rose by about 32 per cent to $4.5 billion during April-June this fiscal as against $3.40 billion in the same period last year. In 2021-22, apparel exports stood at $16.2 billion. But, in last leg of trade, market failed to hold gains and finished the session marginally lower.

Traders were seen piling positions in Bankex, FMCG and Media sector while selling was witnessed in IT, Pharma and Realty sector stocks. The top gainers from the F&O segment were Astral, IndiaMART InterMESH and Adani Enterprises. On the other hand, the top losers were BPCL, HPCL and Coromandel International. 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 decreased by 1.62% and reached 19.55. The 50 share Nifty down by 3.35 points or 0.019% to settle at 17,539.45.

Nifty September 2022 futures closed at 17561.95 (LTP) on Friday, at a premium of 22.50 points over spot closing of 17539.45, while Nifty October 2022 futures ended at 17616.00 (LTP), at a premium of 76.55 points over spot closing. Nifty September futures saw an addition of 18,293 units, taking the total open interest (Contracts) to 2,72,663 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 12.20 points at 2540.15 (LTP) compared with spot closing of 2527.95. The numbers of contracts traded were 31,099 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 5.60 points at 1487.60 (LTP) compared with spot closing of 1482.00. The numbers of contracts traded were 23,051 (Provisional).

Adani Enterprises September 2022 futures traded at a premium of 11.00 points at 3363.00 (LTP) compared with spot closing of 3352.00. The numbers of contracts traded were 20,567 (Provisional).

Infosys September 2022 futures traded at a premium of 2.80 points at 1455.75 (LTP) compared with spot closing of 1452.95. The numbers of contracts traded were 19,474 (Provisional).

HDFC September 2022 futures traded at a premium of 4.40 points at 2444.40 (LTP) compared with spot closing of 2440.00. The numbers of contracts traded were 15,226 (Provisional).

Among, Nifty calls, 17600 SP from the September month expiry was the most active call with an addition of 7,221 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 2,805 units open interests. The maximum OI outstanding for Calls was at 18000 SP (42,941 units) and that for Puts was at 16000 SP (84,112 units). The respective Support and Resistance levels of Nifty are: Resistance 17,630.05 -- Pivot Point 17,553.25 -- Support -- 17,462.65.

The Nifty Put Call Ratio (PCR) finally stood at (1.39) for September month contract. The top five scrips with highest PCR on Adani Enterprises (1.05), Ashok Leyland(0.99), ABB (0.93), Asian Paints (0.92) and Abbott India (0.92).

Among most active underlying, Adani Enterprises witnessed an addition of 198 units of Open Interest in the September month futures, Reliance Industries witnessed an addition of 6,871 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 2,161 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 203 units of Open Interest in the September month futures and ITC witnessed an addition of 3,733 units of Open Interest in the September month futures (provisional).