Nifty extends losing streak on weekly F&O expiry day

Nifty extended its losing streak on weekly F&O expiry day and closed the day’s trade with cut of half a percent. Market made negative start with private report stating that India's headline retail inflation is expected to rise to a five-month high of 7.4% in September, with the risk of going higher if the momentum of food and vegetable prices picks up further in the rest of the month. Further, Market added more losses to trade at lower level, as traders were cautious with report that foreign institutional investors (FIIs) have sold (net) shares worth Rs 461.04 crore on September 21, as per provisional data available on the NSE. In late afternoon trade, index trimmed most of its losses, as rating agency Crisil stated that gross non-performing assets (GNPAs) of banks - a key indicator of asset quality - is expected to improve 90 basis points (bps) to 5% this fiscal on-year (FY23), and another 100 bps to a decadal low of 4% by March 31, 2024 (FY24), riding on post-pandemic economic recovery and higher credit growth. But, market unable to erase all losses and once again came under selling pressure at the end of the session. 

Traders were seen piling positions in Auto, FMCG and Media sector while selling was witnessed in Bank, IT and Realty sector stocks. The top gainers from the F&O segment were Metropolis Healthcare, Tata Chemicals and Page Industries. On the other hand, the top losers were Power Grid Corporation of India, City Union Bank and India Cements. In the index option segment, maximum OI continues to be seen in the 18950 -19150 calls and 15900 -16200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.63% and reached 18.82. The 50 share Nifty down by 88.55 points or 0.50% to settle at 17,629.80.

Nifty September 2022 futures closed at 17652.85 (LTP) on Thursday, at a premium of 23.05 points over spot closing of 17629.80, while Nifty October 2022 futures ended at 17712.30 (LTP), at a premium of 82.50 points over spot closing. Nifty September futures saw an addition of 20,296 units, taking the total open interest (OI) to 2,24,017 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 4.10 points at 1372.10 (LTP) compared with spot closing of 1368.00. The numbers of contracts traded were 29,195 (Provisional).

Reliance Industries September 2022 futures traded at a premium of 7.95 points at 2495.90 (LTP) compared with spot closing of 2487.95. The numbers of contracts traded were 27,953 (Provisional).

HDFC Bank September 2022 futures traded at a premium of 4.35 points at 1490.55 (LTP) compared with spot closing of 1486.20. The numbers of contracts traded were 26,104 (Provisional).

ICICI Bank September 2022 futures traded at a premium of 2.15 points at 904.90 (LTP) compared with spot closing of 902.75. The numbers of contracts traded were 16,763 (Provisional).

Bajaj Finance September 2022 futures traded at a premium of 17.30 points at 7744.40 (LTP) compared with spot closing of 7727.10. The numbers of contracts traded were 15,557 (Provisional).

Among, Nifty calls, 17700 SP from the September month expiry was the most active call with an addition of 55,164 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 21,911 units open interests. The maximum OI outstanding for Calls was at 19000 SP (1,40,106 units) and that for Puts was at 16000 SP (97,791 units). The respective Support and Resistance levels of Nifty are: Resistance 17,724.22 -- Pivot Point 17,628.33 -- Support -- 17,533.92.

The Nifty Put Call Ratio (PCR) finally stood at (0.89) for September month contract. The top five scrips with highest PCR on RBL Bank (1.04), Mahindra & Mahindra Fin. Services (1.03), Adani Enterprises (0.93), Indian Hotel (0.89) and Bank of Baroda (0.89).

Among most active underlying, Adani Enterprises witnessed an addition of 301 units of Open Interest in the September month futures, HDFC Bank witnessed an addition of 2,096 units of Open Interest in the September month futures, ICICI Bank witnessed a contraction of 768 units of Open Interest in the September month futures and Reliance Industries witnessed an addition of 1,294 units of Open Interest in the September month futures (Provisional).