Nifty closed the Wednesday’s session with cut of over half a percent. India VIX was up by 2.44%. Market made negative start, as fourth round of the Quarterly Employment Survey (QES) released by the Labour Ministry showed that employment generation in nine non-farm sectors slowed down in the March quarter of FY22, possibly under the impact of Omicron variant of Covid-19, with additional job creation dipping to 350,000 during the quarter, from 390,000 in the preceding December quarter of the financial year. Market continued its weak trade, as rupee depreciated 40 paise to an all-time low of 81.93 against the US dollar as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit. In afternoon trade, index trimmed some of its losses with a drop in oil and commodity prices, investment in the Indian capital markets through participatory notes rose to Rs 84,810 crore at the end of August, after three consecutive monthly declines. But, in late afternoon session, market dragged lower to touch intraday low point. Finally, Nifty ended day’s trade below 16900 mark.
Most of the sectoral indices ended in red except Auto, IT and Pharma. The top gainers from the F&O segment were India Cements, Aditya Birla Fashion and Retail and Ramco Cements. On the other hand, the top losers were Chambal Fertilisers & Chemicals, Samvardhana Motherson International and Punjab National Bank. In the index option segment, maximum OI continues to be seen in the 16900 -17100 calls and 16750 -16900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 2.44% and reached 22.10. The 50 share Nifty down by 148.80 points or 0.87% to settle at 16,858.60.
Nifty September 2022 futures closed at 16838.10 (LTP) on Wednesday, at a discount of 20.50 points over spot closing of 16858.60, while Nifty October 2022 futures ended at 16866.00 (LTP), at a premium of 7.40 points over spot closing. Nifty September futures saw a contraction of 8,607 units, taking the total outstanding open interest (Contracts) to 1,55,265 units. The near month derivatives contract will expire on September 29, 2022 (Provisional).
From the most active contracts, Reliance Industries September 2022 futures traded at a premium of 1.70 points at 2332.20 (LTP) compared with spot closing of 2330.50. The numbers of contracts traded were 58,742 (Provisional).
Infosys September 2022 futures traded at a premium of 2.80 points at 1397.25 (LTP) compared with spot closing of 1394.45. The numbers of contracts traded were 38,056 (Provisional).
TCS September 2022 futures traded at a discount of 3.20 points at 3025.15 (LTP) compared with spot closing of 3028.35. The numbers of contracts traded were 28,283 (Provisional).
HDFC Bank September 2022 futures traded at a premium of 0.05 points at 1387.05 (LTP) compared with spot closing of 1387.00. The numbers of contracts traded were 24,062 (Provisional).
Adani Enterprises September 2022 futures traded at a discount of 3.00 points at 3537.00 (LTP) compared with spot closing of 3540.00. The numbers of contracts traded were 17,568 (Provisional).
Among, Nifty calls, 16900 SP from the September month expiry was the most active call with an addition of 83,479 units open interests. Among Nifty puts, 16800 SP from the September month expiry was the most active put with an addition of 37,892 units open interests. The maximum OI outstanding for Calls was at 17000 SP (1,91,521 units) and that for Puts was at 16800 SP (1,16,239 units). The respective Support and Resistance levels of Nifty are: Resistance 16,990.67 -- Pivot Point 16,905.53 -- Support -- 16,773.47.
The Nifty Put Call Ratio (PCR) finally stood at (0.61) for September month contract. The top five scrips with highest PCR on Dr Lal Path Labs (1.27), Adani Enterprises (1.10), HUL (1.02), Indian Hotel (1.00) and Eicher Motors (0.98).
Among most active underlying, Reliance Industries witnessed an addition of 13,222 units of Open Interest in the September month futures, Adani Enterprises witnessed an addition of 690 units of Open Interest in the September month futures, ICICI Bank witnessed an addition of 2,822 units of Open Interest in the September month futures, HDFC Bank witnessed a contraction of 1,888 units of Open Interest in the September month futures (Provisional).
