Nifty extends gains for second consecutive day

Nifty closed the day’s trade above a percent on Tuesday. India VIX was down by 5.72%. Market made optimistic start, as traders took support with report that foreign institutional investors (FIIs) have bought (net) shares worth Rs 312.31 crore on September 19, as per provisional data available on the NSE. Market continued its firm trade, as some optimism came with a private survey report indicating that Indian consumers are concerned about rising costs but 71 per cent of them believe the economy will recover within a year. In afternoon trade, index added some points with that the commerce and industry ministry is planning a multi-media campaign to promote over 400 GI (Geographical Indication) products such as Darjeeling Tea, Chanderi Fabric, Mysore Silk, and Kashmir Walnut Wood Carving. It added this would further increase employment avenues for the producers and boost the economy. However, index cut some gains in last hour of trade as traders were cautious ahead of U.S. Federal Reserve's policy decision this week. Finally, Nifty closed above 17800 mark.

All the sectoral indices ended in green. The top gainers from the F&O segment were Apollo Hospitals Enterprise, Crompton Greaves Consumer Electricls and Cipla. On the other hand, the top losers were Max Financial Services, Granules India and Can Fin Homes. In the index option segment, maximum OI continues to be seen in the 17950 -18100 calls and 16400 -16700 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 5.72% and reached 18.80. The 50 share Nifty up by 194.00 points or 1.10% to settle at 17,816.25.

Nifty September 2022 futures closed at 17803.70 (LTP) on Tuesday, at a discount of 12.55 points over spot closing of 17816.25, while Nifty October 2022 futures ended at 17857.00 (LTP), at a premium of 40.75 points over spot closing. Nifty September futures saw a contraction of 8,519 units, taking the total open interest (Contracts) to 2,11,491 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 premium of 3.95 points at 1391.95 (LTP) compared with spot closing of 1388.00. The numbers of contracts traded were 26,203 (Provisional).

Ambuja Cements September 2022 futures traded at a premium of 0.95 points at 573.00 (LTP) compared with spot closing of 572.05. The numbers of contracts traded were 25,047 (Provisional).

Reliance Industries September 2022 futures traded at a premium of 5.15 points at 2503.00 (LTP) compared with spot closing of 2497.85. The numbers of contracts traded were 23,471 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 4.75 points at 1522.30 (LTP) compared with spot closing of 1517.55. The numbers of contracts traded were 20,055 (Provisional).

Can Fin Homes September 2022 futures traded at a premium of 2.00 points at 569.00 (LTP) compared with spot closing of 567.00. The numbers of contracts traded were 17,049 (Provisional).

Among, Nifty calls, 18000 SP from the September month expiry was the most active call with an addition of 3,458 units open interests. Among Nifty puts, 17800 SP from the September month expiry was the most active put with an addition of 13,856 units open interests. The maximum OI outstanding for Calls was at 18000 SP (61,494 units) and that for Puts was at 16500 SP (63,971 units). The respective Support and Resistance levels of Nifty are: Resistance 17,908.90 -- Pivot Point 17,826.65 -- Support -- 17,734.00.

The Nifty Put Call Ratio (PCR) finally stood at (1.22) for September month contract. The top five scrips with highest PCR on Adani Enterprises (1.09), Indusind Bank (1.07), Bank of Baroda (1.06), RBL Bank (1.05) and Mahindra & Mahindra Fin. Services (0.97).

Among most active underlying, Ambuja Cements witnessed an addition of 593 units of Open Interest in the September month futures, Adani Enterprises witnessed a contraction of 51 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 1,745 units of Open Interest in the September month futures, Adani Ports witnessed an addition of 1,266 units of Open Interest in the September month futures and HDFC Bank witnessed a contraction of 2,623 units of Open Interest in the September month futures (Provisional).