The local benchmark -- Nifty -- ended lower for second straight session. Market made cautious start and soon entered into red zone, as S&P Global cut its growth forecasts for some of Asia's top economies including India, the Philippines and Malaysia, offsetting upgrades to China and South Africa and much of Latin America. The estimates, which feed into S&P's closely-followed sovereign ratings, saw India's growth projection chopped to 9.5% from 11% due to its COVID-19 outbreak. Further, market continued its weak run, as sentiments remained downbeat with a domestic rating agency ICRA stating that nearly a third of loans by NBFCs are in risky segments, and the already elevated non-performing assets ratio for such lenders are expected to rise by up to 1 percent in FY22 due to the impact of the second COVID-19 wave. Market pare most of their losses in later part of the day as traders took note of report that unemployment rate came down further to 8.72% for the week ended June 27 from 9.35% in the previous week, but still remained higher than 8.16% recorded at the beginning of the second Covid-19 wave in early April. The unemployment rate has fallen on a fallen labour participation rate (LPR). The LPR fell from 40.5% in the previous week to 39.6%. Finally, Nifty ended the session below 15750 mark. The recovery proved shortlived and selling in dying hour of trade dragged markets to end near intraday lows
Most of the sectoral indices ended in red except FMGC and Pharma. The top gainers from the F&O segment were Marico, Apollo Hospitals Enterprise and IGL. On the other hand, the top losers were Bandhan Bank, Vodafone Idea and National Aluminium Company. In the index option segment, maximum OI continues to be seen in the 15900 -17000 calls and 14500 -15,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.98% and reached 13.00. The 50 share Nifty down by 66.25 points or 0.42% to settle at 15,748.45.
Nifty July 2021 futures closed at 15792.00 (LTP) on Tuesday, at a premium of 43.55 points over spot closing of 15748.45, while Nifty August 2021 futures ended at 15839.80 (LTP), at a premium of 91.35 points over spot closing. Nifty July futures saw an addition of 4,898 units, taking the total open interest (OI) to 1,94,426 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 10.70 points at 2097.00 (LTP) compared with spot closing of 2086.30. The numbers of contracts traded were 50,712 (Provisional).
HDFC Life Insurance July 2021 futures traded at a premium of 2.35 points at 689.65 (LTP) compared with spot closing of 687.30. The numbers of contracts traded were 33,826 (Provisional).
Kotak Mahindra Bank July 2021 futures traded at a premium of 11.85 points at 1717.00 (LTP) compared with spot closing of 1705.15. The numbers of contracts traded were 24,041 (Provisional).
Tata Steel July 2021 futures traded at a premium of 4.55 points at 1178.60 (LTP) compared with spot closing of 1174.05. The numbers of contracts traded were 17,192 (Provisional).
SBIN July 2021 futures traded at a premium of 2.65 points at 424.20 (LTP) compared with spot closing of 421.55. The numbers of contracts traded were 14,720 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 5,007 units open interests. Among Nifty puts, 15500 SP from the July month expiry was the most active put with an addition of 2,776 units open interests. The maximum OI outstanding for Calls was at 16000 SP (46,237 units) and that for Puts was at 15500 SP (57,404 units). The respective Support and Resistance levels of Nifty are: Resistance 15,814.88 -- Pivot Point 15,769.47 -- Support -- 15,703.03.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for July month contract. The top five scrips with highest PCR on Coromandel International (1.16), Indus Towers (0.99), BPCL (0.93), Adani Enterprises (0.84) and Vedanta (0.80).
Among most active underlying, Reliance Industries witnessed an addition of 6,827 units of Open Interest in the July month futures contract, HDFC Life Insurance witnessed an addition of 8,374 units of Open Interest in the July month futures contract, Tata Steel witnessed an addition of 331 units of Open Interest in the July month futures contract, Kotak Mahindra Bank witnessed an addition of 8,290 units of Open Interest in the July month futures contract and Adani Enterprises witnessed an addition of 92 units of Open Interest in the July month futures contract (Provisional).