Nifty, the 50-share index witnessed massacre on Monday as traders sold risky assets amid worries over a slowdown in global economic growth. The index made a gap down opening and witnessed mayhem throughout the session as sentiments remain dampened on report that the Reserve Bank of India is set to raise interest rates again this week on September 30 with a slim majority expecting a half-point hike and some others expecting a smaller 35 basis point rise. The RBI has lagged many of its global peers, despite inflation sticking above the top end of its target range of 2-6 percent all year. The barometer index extended losses as depreciating rupee dampened sentiments by hitting a fresh record low against US dollar tracking losses in domestic as well as global equities markets. The home currency opened at 81.55 and touched an all time low of 81.55 a dollar.
However, market pared some of their losses in later half of the trade as traders went for value buying at lower levels taking some support with Finance Minister Nirmala Sitharaman’s statement that the rupee has held back very well when compared to other currencies against the US Dollar. She added that the Reserve Bank and the Finance Ministry are keeping a very close watch over the developments. Recovery proved short-lived as selloff in last leg of trade dragged market near their intraday low level as traders remained pessimistic with S&P Global Ratings’ projection that India's economic growth at 7.3 percent in the current fiscal with downside risks and said inflation is likely to remain above RBI's upper tolerance threshold of 6 percent till the end of 2022.
All the sectoral indices ended in red except IT. The top gainers from the F&O segment were Metropolis Healthcare, DR. Lal Path Labs and IPCA Laboratories. On the other hand, the top losers were RBL Bank, The India Cements and Mahindra Finance. In the index option segment, maximum OI continues to be seen in the 17900 -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 6.31% and reached 21.89. The 50 share Nifty down by 311.05 points or 1.80% to settle at 17,016.30.
Nifty September 2022 futures closed at 17037.00 (LTP) on Monday, at a premium of 20.70 points over spot closing of 17016.30, while Nifty October 2022 futures ended at 17092.00 (LTP), at a premium of 75.70 points over spot closing. Nifty September futures saw an addition of 134 units, taking the total open interest (OI) to 2,16,830 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 3.45 points at 1386.45 (LTP) compared with spot closing of 1383.00. The numbers of contracts traded were 52,148 (Provisional).
HDFC Bank September 2022 futures traded at a discount of 0.95 points at 1428.85 (LTP) compared with spot closing of 1429.80. The numbers of contracts traded were 40,066 (Provisional).
Reliance Industries September 2022 futures traded at a premium of 1.90 points at 2380.05 (LTP) compared with spot closing of 2378.15. The numbers of contracts traded were 37,412 (Provisional).
Power Grid September 2022 futures traded at a premium of 0.30 points at 200.65 (LTP) compared with spot closing of 200.35. The numbers of contracts traded were 35,001 (Provisional).
Adani Ports September 2022 futures traded at a premium of 0.25 points at 856.05 (LTP) compared with spot closing of 855.80. The numbers of contracts traded were 33,551 (Provisional).
Among, Nifty calls, 17200 SP from the September month expiry was the most active call with an addition of 87,082 units open interests. Among Nifty puts, 16500 SP from the September month expiry was the most active put with an addition of 33,710 units open interests. The maximum OI outstanding for Calls was at 18000 SP (2,06,883 units) and that for Puts was at 16000 SP (1,44,894 units). The respective Support and Resistance levels of Nifty are: Resistance 17,149.03 -- Pivot Point 17,063.67 -- Support -- 16,930.93.
The Nifty Put Call Ratio (PCR) finally stood at (0.58) for September month contract. The top five scrips with highest PCR on Adani Enterprises (0.95), RBL Bank (0.93), HUL (0.89), Eicher Motors (0.85) and Indian Hotel (0.82).
Among most active underlying, Adani Ports witnessed an addition of 1,649 units of Open Interest in the September month futures, Adani Enterprises witnessed a contraction of 1,813 units of Open Interest in the September month futures, HDFC Bank witnessed a contraction of 5,648 units of Open Interest in the September month futures, ICICI Bank witnessed a contraction of 426 units of Open Interest in the September month futures and Reliance Industries witnessed a contraction of 2,063 units of Open Interest in the September month futures (Provisional).
