Nifty ends higher; surpasses 18050 mark

Nifty ended the Tuesday’s session above 18050 mark. India VIX was down by 2.60%. Market made positive start even after India’s retail inflation rate rose to 7% from 6.7% in the previous month, driven by a surge in food prices. Also, India’s industrial production growth decelerated to a four-month low of 2.4% in July, mainly due to poor showing by manufacturing, power and mining sectors. Further, index continued gaining momentum, as commerce and industry minister Piyush Goyal said Indian rupee has shown more resilience than most of the other currencies in recent years and the compounded average growth rate of depreciation is lower as compared to pre-2014. In afternoon trade, market enlarged its gains and continued firm trade till end, as India's agricultural and processed food products exports rose by 30% to $9.6 billion during April-July this fiscal. Finally, Nifty closed the day’s trade above half a percent.

Most of the sectoral indices ended in green except IT, PSU Bank and Realty. The top gainers from the F&O segment were Trent, L&T Finance Holdings and SRF. On the other hand, the top losers were Dr. Lal PathLabs, Astral and Bajaj Finserv. In the index option segment, maximum OI continues to be seen in the 18350 -18600 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 2.60% and reached 17.47. The 50 share Nifty up by 133.70 points or 0.75% to settle at 18,070.05.

Nifty September 2022 futures closed at 18108.50 (LTP) on Tuesday, at a premium of 38.45 points over spot closing of 18070.05, while Nifty October 2022 futures ended at 18160.00 (LTP), at a premium of 89.95 points over spot closing. Nifty September futures saw an addition of 1,702 units, taking the total open interest (Contracts) to 2,55,209 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 8.65 points at 2627.65 (LTP) compared with spot closing of 2619.00. The numbers of contracts traded were 26,207 (Provisional).

Bajaj Finserv September 2022 futures traded at a discount of 42.10 points at 1753.00 (LTP) compared with spot closing of 1795.10. The numbers of contracts traded were 23,963 (Provisional).

Infosys September 2022 futures traded at a premium of 0.60 points at 1545.60 (LTP) compared with spot closing of 1545.00. The numbers of contracts traded were 20,443 (Provisional).

Bajaj Finance September 2022 futures traded at a premium of 25.90 points at 7416.00 (LTP) compared with spot closing of 7390.10. The numbers of contracts traded were 17,854 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 6.00 points at 1520.35 (LTP) compared with spot closing of 1514.35. The numbers of contracts traded were 17,134 (Provisional).

Among, Nifty calls, 18100 SP from the September month expiry was the most active call with an addition of 3,734 units open interests. Among Nifty puts, 18000 SP from the September month expiry was the most active put with an addition of 16,441 units open interests. The maximum OI outstanding for Calls was at 18500 SP (40,958 units) and that for Puts was at 16000 SP (66,835 units). The respective Support and Resistance levels of Nifty are: Resistance 18,100.42 -- Pivot Point 18,057.93 -- Support -- 18,027.57.

The Nifty Put Call Ratio (PCR) finally stood at (1.36) for September month contract. The top five scrips with highest PCR on Adani Enterprises (1.21), Bank of Baroda (1.14), Mahindra & Mahindra Fin. Services (1.09), RBL Bank (1.04) and Container Corporation of India (0.94).

Among most active underlying, Adani Enterprises witnessed a contraction of 451 units of Open Interest in the September month futures, Bajaj Finserv witnessed an addition of 17,550 units of Open Interest in the September month futures, Reliance Industries witnessed a contraction of 2,108 units of Open Interest in the September month futures, Bajaj Finance witnessed an addition of 323 units of Open Interest in the September month futures and Adani Ports witnessed an addition of 181 units of Open Interest in the September month futures (Provisional).