Nifty snaps two day gaining streak on Wednesday

Nifty closed the Wednesday’ session with cut of above half a percent ahead of the US Federal Reserve's meeting outcome. India VIX was up by 2.80%. Market made negative start, as traders were cautious with chief economic advisor V Anantha Nageswaran’s statement that Indian economy will grow at over 7 per cent, down from above 8 per cent of growth rate projected in January. He, however, said that the economic momentum and the animal spirits are unmistakable. Index continued weak trade, as retail inflation for farm and rural workers increased to 6.94 per cent and 7.26 per cent, respectively, in August mainly due to higher prices of certain food items. In July, retail inflation for farm and rural workers stood at 6.60 per cent and 6.82 per cent respectively. In afternoon trade, market touched its intraday low point after Asian Development Bank (ADB) has slashed India's economic growth projection for 2022-23 to 7 per cent from 7.2 per cent earlier, citing higher than expected inflation and monetary tightening. However, market cut some of its losses but failed to erase all losses and finally ended the session below 17750 mark.

Most of the sectoral indices ended in red except FMCG. The top gainers from the F&O segment were Britannia Industries, Dr. Lal PathLabs and Granules India. On the other hand, the top losers were Shree Cement, Ambuja Cements and ACC. In the index option segment, maximum OI continues to be seen in the 17950 -18100 calls and 17400 -17600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.80% and reached 19.33. The 50 share Nifty down by 97.90 points or 0.55% to settle at 17,718.35.

Nifty September 2022 futures closed at 17723.75 (LTP) on Wednesday, at a premium of 5.40 points over spot closing of 17718.35, while Nifty October 2022 futures ended at 17780.90 (LTP), at a premium of 62.55 points over spot closing. Nifty September futures saw an addition of 2,114 units, taking the total open interest (contracts) to 2,09,811 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 1.35 points at 1381.75 (LTP) compared with spot closing of 1380.40. The numbers of contracts traded were 30,797 (Provisional).

Ambuja Cements September 2022 futures traded at a premium of 2.00 points at 541.20 (LTP) compared with spot closing of 539.20. The numbers of contracts traded were 27,910 (Provisional).

Adani Enterprises September 2022 futures traded at a discount of 6.50 points at 3633.50 (LTP) compared with spot closing of 3640.00. The numbers of contracts traded were 27,442(Provisional).

Reliance Industries September 2022 futures traded at a premium of 1.40 points at 2509.10 (LTP) compared with spot closing of 2507.70. The numbers of contracts traded were 21,954 (Provisional).

Adani Ports September 2022 futures traded at a discount of 1.50 points at 932.50 (LTP) compared with spot closing of 934.00. The numbers of contracts traded were 19,002 (Provisional).

Among, Nifty calls, 18000 SP from the September month expiry was the most active call with an addition of 13,308 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 9,962 units open interests. The maximum OI outstanding for Calls was at 18000 SP (74,857 units) and that for Puts was at 17500 SP (70,993 units). The respective Support and Resistance levels of Nifty are: Resistance 17,816.83 -- Pivot Point 17,740.22 -- Support -- 17,641.73.

The Nifty Put Call Ratio (PCR) finally stood at (1.12) for September month contract. The top five scrips with highest PCR on RBL Bank (1.05), Bank of Baroda (1.02), Mahindra & Mahindra Fin. Services (0.99), Indusind Bank (0.95) and Adani Enterprises (0.91).

Among most active underlying, Adani Enterprises witnessed an addition of 1,569 units of Open Interest in the September month futures, Ambuja Cements witnessed an addition of 561 units of Open Interest in the September month futures and Adani Ports witnessed an addition of 517 units of Open Interest in the September month futures (Provisional).