Nifty snapped 4- day winning streak on Wednesday. Market started day on somber note, as OECD said India’s gross domestic product (GDP) in the June quarter contracted 1.4 per cent quarter-on-quarter, when adjusted for seasonality, and was the second worst performance among the G20 countries - the first being China. Further, market continued its weak trade amid report stating that investors' wealth eroded by more than Rs 2.21 lakh crore in early trade on Wednesday, with the market witnessing a selling-off amid prospects of aggressive rate hikes by the US Federal Reserve to tackle high inflation, and sluggish global trends. However, in afternoon trade, index trimmed its losses to trade near neutral line, as India’s inflation based on wholesale price index (WPI) eased to 12.41% in the month of August 2022 as against 13.93% in July 2022. Inflation in August is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year. Finally, Nifty closed the day’s trade below 18050 mark.
Traders were seen piling positions in Bank, Media and Metal sector while selling was witnessed in FMCG, Auto and IT sector stocks. The top gainers from the F&O segment were Vedanta, India Cements and Ambuja Cements. On the other hand, the top losers were Coforge, LTTS and Infosys. In the index option segment, maximum OI continues to be seen in the 18350 -18600 calls and 16950 -17200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 4.62% and reached 18.28. The 50 share Nifty down by 66.30 points or 0.37% to settle at 18,003.75.
Nifty September 2022 futures closed at 18018.00 (LTP) on Wednesday, at a premium of 14.25 points over spot closing of 18003.75, while Nifty October 2022 futures ended at 18070.00 (LTP), at a premium of 66.25 points over spot closing. Nifty September futures saw an addition of 4,791 units, taking the total open interest (Contracts) to 2,56,791 units. The near month derivatives contract will expire on September 29, 2022 (Provisional).
From the most active contracts, Infosys September 2022 futures traded at a discount of 3.75 points at 1471.25 (LTP) compared with spot closing of 1475.00. The numbers of contracts traded were 64,160 (Provisional).
Vedanta September 2022 futures traded at a premium of 1.20 points at 306.15 (LTP) compared with spot closing of 304.95. The numbers of contracts traded were 37,537(Provisional).
HDFC Bank September 2022 futures traded at a premium of 3.40 points at 1528.50 (LTP) compared with spot closing of 1525.10. The numbers of contracts traded were 33,880 (Provisional).
TCS September 2022 futures traded at a premium of 8.95 points at 3133.95 (LTP) compared with spot closing of 3125.00. The numbers of contracts traded were 30,624 (Provisional).
ACC September 2022 futures traded at a premium of 16.20 points at 2745.00 (LTP) compared with spot closing of 2728.80. The numbers of contracts traded were 30,161 (Provisional).
Among, Nifty calls, 18500 SP from the September month expiry was the most active call with an addition of 2,802 units open interests. Among Nifty puts, 18000 SP from the September month expiry was the most active put with an addition of 5,779 units open interests. The maximum OI outstanding for Calls was at 18500 SP (43,522 units) and that for Puts was at 17000 SP (59,680 units). The respective Support and Resistance levels of Nifty are: Resistance 18,139.82 -- Pivot Point 17,955.48 -- Support --17,819.42.
The Nifty Put Call Ratio (PCR) finally stood at (1.34) for September month contract. The top five scrips with highest PCR on Adani Enterprises (1.14), Indusind Bank (1.14), Bank of Baroda (1.13), Mahindra & Mahindra Fin. Services (1.13) and SBI (1.02).
Among most active underlying, Infosys witnessed an addition of 30,402 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 5,928 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 2,798 units of Open Interest in the September month futures, SBIN witnessed an addition of 3,987 units of Open Interest in the September month futures and Adani Enterprises witnessed an addition of 426 units of Open Interest in the September month futures (Provisional).
