Nifty ends near neutral line with negative bias

S&P CNX – Nifty ended volatile trading session near neutral line with negative bias. India VIX was down by 0.69%. After making positive start, soon index turned volatile, as Finance Ministry in its report on ‘India's external debt’ has said that India's external debt rose by 8.2 per cent year-on-year to USD 620.7 billion as of March 2022. It stated while 53.2 per cent of it was denominated in the US dollar, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest. In afternoon session, market recouped from losses to trade higher after credit rating agency Moody’s has allotted a Baa3 rating for the Government of India with a stable outlook. India's credit profile reflects key strengths including its large and diversified economy with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt. However, in last leg of trade, index failed to continue positive trend and slipped in red zone. Finally, Nifty closed the day’s trade in red territory.  

Traders were seen piling positions in Metal, Pharma and PSU Bank sector while selling was witnessed in Bank, Auto and IT sector stocks. The top gainers from the F&O segment were Apollo Tyre, Ambuja Cements and Crompton Greaves Consumer Electricls. On the other hand, the top losers were Tata Consumer Products, ICICI Lombard General Insurance Co and GAIL. 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 0.69% and reached 19.53. The 50 share Nifty down by 10.20 points or 0.05% to settle at 17,655.60.

Nifty September 2022 futures closed at 17683.95 (LTP) on Tuesday, at a premium of 28.35 points over spot closing of 17655.60, while Nifty October 2022 futures ended at 17735.00 (LTP), at a premium of 79.40 points over spot closing. Nifty September futures saw an addition of 9,551 units, taking the total open interest (Contracts) to 2,66,508 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 6.90 points at 2600.90 (LTP) compared with spot closing of 2594.00. The numbers of contracts traded were 27,998 (Provisional).

Tata Power September 2022 futures traded at a premium of 1.40 points at 248.90 (LTP) compared with spot closing of 247.50. The numbers of contracts traded were 25,810 (Provisional).

Ambuja Cements September 2022 futures traded at a premium of 0.85 points at 441.85 (LTP) compared with spot closing of 441.00. The numbers of contracts traded were 22,652 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 5.95 points at 1494.95 (LTP) compared with spot closing of 1489.00. The numbers of contracts traded were 18,906 (Provisional).

Bharti Airtel September 2022 futures traded at a discount of 3.25 points at 756.00 (LTP) compared with spot closing of 759.25. The numbers of contracts traded were 16,521 (Provisional).

Among, Nifty calls, 17700 SP from the September month expiry was the most active call with an addition of 3,266 units open interests. Among Nifty puts, 17600 SP from the September month expiry was the most active put with a contraction of 2,918 units open interests. The maximum OI outstanding for Calls was at 18000 SP (43,869 units) and that for Puts was at 16000 SP (85,607 units). The respective Support and Resistance levels of Nifty are: Resistance 17,750.95 -- Pivot Point 17,669.30 -- Support -- 17,573.95.

The Nifty Put Call Ratio (PCR) finally stood at (1.41) for September month contract. The top five scrips with highest PCR on Adani Enterprises (1.10), Ashok Leyland (0.98), RBL Bank (0.92), Mahindra & Mahindra Fin. Services (0.91) and TVS Motors (0.87).

Among most active underlying, Adani Enterprises witnessed a contraction of 414 units of Open Interest in the September month futures, Tata Power witnessed an addition of 3,264 units of Open Interest in the September month futures, Reliance Industries witnessed a contraction of 2,152 units of Open Interest in the September month futures, Ambuja Cements witnessed an addition of 1,321 units of Open Interest in the September month futures and HDFC Bank witnessed an addition of 2,209 units of Open Interest in the September month futures (provisional).