Indian equity benchmark--Nifty--recovered to end higher on Monday's trading session. Market made a negative start of the trading day, after Care Ratings said the credit growth for FY22 is likely to remain in low double-digit on the back of muted economic activity. Traders were cautious, as private report has projected real GDP growth of 8.7 per cent in FY22, down from 11.1 per cent it had forecast earlier. However, it revised up the FY23 forecast from 4 per cent to 5.4 per cent.
Weak trade continued over the street for the most part of the trading session, amid a private report stated that hiring across sectors declined in May, though the tech industry job market rebounded from the pandemic-induced downturn as many technology companies have been on full expansion mode. There was 2 percent decline in the overall number of new job posts in May on the SCIKEY Market Network, a job site, including in sectors like banking with a dip of 12 percent, retail 16 percent, and FMCG 12 percent, while there was a growth of 5 percent in the insurance sector.
But, index cut all of its losses in the last hours of the trade to end in green, taking support with a UN report stated that India received $64 billion in Foreign Direct Investment in 2020, the fifth largest recipient of inflows in the world, It also said that the COVID-19 second wave in the country weighs heavily on the country's overall economic activities but its strong fundamentals provide optimism for the medium term. Some support also came in as Chief Economic Advisor (CEA) K V Subramanian has said the government is open to coming out with more measures to boost the economy which has been hit by the second wave of the coronavirus pandemic.
Most of the sectoral indices ended in green except Auto and IT. The top gainers from the F&O segment were GMR Infra, Bandhan Bank and BHEL. On the other hand, the top losers were Balkrishna Industries, PVR and UPL. In the index option segment, maximum OI continues to be seen in the 15600 -17000 calls and 14500 -15,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.77% and reached 15.06. The 50 share Nifty up by 63.15 points or 0.40% to settle at 15,746.50.
Nifty June 2021 futures closed at 15748.85 (LTP) on Monday, at a premium of 2.35 points over spot closing of 15746.50, while Nifty July 2021 futures ended at 15794.55 (LTP), at a premium of 48.05 points over spot closing. Nifty June futures saw a contraction of 49 units, taking the total open interest (OI) to 1,16,741 mn units. The near month derivatives contract will expire on June 24, 2021 (Provisional).
From the most active contracts, Reliance Industries June 2021 futures traded at a discount of 2.95 points at 2236.00 (LTP) compared with spot closing of 2238.95. The numbers of contracts traded were 54,239 (Provisional).
SBIN June 2021 futures traded at a premium of 0.20 points at 419.30 (LTP) compared with spot closing of 419.10. The numbers of contracts traded were 30,716 (Provisional).
Tata Steel June 2021 futures traded at a premium of 1.80 points at 1107.80 compared (LTP) with spot closing of 1106.00. The numbers of contracts traded were 28,272 (Provisional).
Adani Enterprises June 2021 futures traded at a premium of 1.00 points at 1532.00 (LTP) compared with spot closing of 1531.00. The numbers of contracts traded were 22,567 (Provisional).
Tata Motor June 2021 futures traded at a discount of 0.55 points at 333.45 (LTP) compared with spot closing of 334.00. The numbers of contracts traded were 18,633 (Provisional).
Among, Nifty calls, 15700 SP from the June month expiry was the most active call with an addition of 891 units open interests. Among Nifty puts, 15500 SP from the June month expiry was the most active put with an addition of 13,802 units open interests. The maximum OI outstanding for Calls was at 16500 SP (72,137 units) and that for Puts was at 15000 SP (65,816 units). The respective Support and Resistance levels of Nifty are: Resistance 15,839.22 -- Pivot Point 15,672.43 -- Support -- 15,579.72.
The Nifty Put Call Ratio (PCR) finally stood at (1.09) for June month contract. The top five scrips with highest PCR on Asian Paints (0.99), Bandhan Bank (0.97), Titan Company (0.90), HDFC Life Insurance (0.84) and Piramal Enterprises (0.83).
Among most active underlying, Adani Enterprises witnessed a contraction of 285 units of Open Interest in the June month futures contract, Reliance Industries witnessed an addition of 6,549 units of Open Interest in the June month futures contract, Tata Steel witnessed a contraction of 1,691units of Open Interest in the June month futures contract, SBIN witnessed an addition of 1,668 units of Open Interest in the June month futures contract and Bharti Airtel witnessed a contraction of 3,627 units of Open Interest in the June month futures contract (Provisional).