Indian benchmark -- Nifty -- finished the session in red zone on Monday. After making positive start, soon market turn negative, as government's total liabilities stood at Rs 116.21 lakh crore at the end of March 2021, up 6.36 per cent from the previous quarter. The total liabilities (including liabilities under the Public Account) of the government were Rs 109.26 lakh crore at end-December 2020. Further, market extended its losses, as RBI data showed that sliding from a lifetime high, India's forex reserves declined by $4.148 billion to reach $603.933 billion for the week ended June 18 due to a fall in gold and currency assets.
Traders were cautious after India Ratings and Research (Ind-Ra) said its earlier estimate of gross domestic product (GDP) growth at 10.1 per cent for the current financial year (FY22) is unlikely to hold due to the speed and scale of Covid 2.0. It now expects GDP growth to come in at 9.6 per cent in FY22. This is however contingent upon India vaccinating its entire adult population by December 31. Market remained lower till the end of the session even after Union Finance Minister Nirmala Sithraman announced 8 new economic relief measures to help tide over the economic slowdown aided by the second wave of covid-19.
Most of the sectoral indices ended in green except IT, Media and Bank. The top gainers from the F&O segment were National Aluminium Company, Gujarat Gas and Bandhan Bank. On the other hand, the top losers were IDFC First Bank, Metropolis Healthcare and HDFC Life Insurance. In the index option segment, maximum OI continues to be seen in the 15900 -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 0.26% and reached 13.40. The 50 share Nifty down by 45.65 points or 0.29% to settle at 15,814.70.
Nifty July 2021 futures closed at 15861.65 (LTP) on Monday, at a premium of 46.95 points over spot closing of 15814.70, while Nifty August 2021 futures ended at 15908.25 (LTP), at a premium of 93.55 points over spot closing. Nifty July futures saw a contraction of 664 units, taking the total open interest (OI) to 1,91,578 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, Reliance Industries July 2021 futures traded at a premium of 14.40 points at 2103.40 (LTP) compared with spot closing of 2089.00. The numbers of contracts traded were 37,810 (Provisional).
SBIN July 2021 futures traded at a premium of 2.70 points at 429.15 (LTP) compared with spot closing of 426.45. The numbers of contracts traded were 22,874 (Provisional).
Tata Steel July 2021 futures traded at a premium of 8.10 points at 1193.10 (LTP) compared with spot closing of 1185.00. The numbers of contracts traded were 22,325 (Provisional).
National Aluminium Company July 2021 futures traded at a premium of 0.55 points at 80.30 (LTP) compared with spot closing of 79.75. The numbers of contracts traded were 14,403 (Provisional).
HDFC Life Insurance July 2021 futures traded at a premium of 1.25 points at 697.25 (LTP) compared with spot closing of 696.00. The numbers of contracts traded were 13,373 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 7,748 units open interests. Among Nifty puts, 15200 SP from the July month expiry was the most active put with an addition of 16,400 units open interests. The maximum OI outstanding for Calls was at 16000 SP (41,202 units) and that for Puts was at 15500 SP (54,777 units). The respective Support and Resistance levels of Nifty are: Resistance 15,889.52 -- Pivot Point 15,840.83 -- Support -- 15,766.02.
The Nifty Put Call Ratio (PCR) finally stood at (1.39) for July month contract. The top five scrips with highest PCR on Coromandel International (0.97), BPCL (0.95), Indus Towers (0.88), Adani Enterprises (0.84) and Vedanta (0.81).
Among most active underlying, Tata Steel witnessed an addition of 1,665 units of Open Interest in the July month futures contract, Reliance Industries witnessed an addition of 3,692 units of Open Interest in the July month futures contract, National Aluminium Company witnessed an addition of 1,733 units of Open Interest in the July month futures contract, SBIN witnessed an addition of 457 units of Open Interest in the July month futures contract and Adani Enterprises witnessed an addition of 234 units of Open Interest in the July month futures contract (Provisional).