After spending most of the day in green zone, local benchmark -- Nifty -- ended the Tuesday’s session in red zone. Market made cautious start and soon added gains, as data from the Reserve Bank of India showed the government's Emergency Credit Line Guarantee Scheme (ECLGS) significantly boosted credit growth for the micro, small and medium enterprises (MSMEs) in the financial year ending March 2021 even as concerns about asset quality of this segment grew. Further, index extended its gains, as Ministry of Finance informed that the Central Board of Direct Taxes (CBDT) has granted further relaxation in the electronic filing of Income Tax Forms 15CA/15CB. Besides, with an aim to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has initiated a project on Open Network for Digital Commerce (ONDC).
Some comfort also came as the restrictions on mobility eased, the unemployment rate came further down to 7.3% for the week ended July 4 from 8.72% in the previous week and 9.35% for the week ended June 20. However, in last leg of trade, market failed to hold the grip and entered into negative territory, as SBI Research in its latest report said that household debt has sharply jumped to 37.3 per cent of the Gross domestic product (GDP) in the pandemic year (FY21) from 32.5 per cent in FY20, confirming the deeper financial impact of COVID-19. It also warned that the ratio may rise further this fiscal due to the second wave of the pandemic.
Most of the sectoral indices ended in red except Bank, Media and Private Bank. The top gainers from the F&O segment were AU Small Finance Bank, Ramco Cements and Godrej Consumer Products. On the other hand, the top losers were Tata Motors, Indiabulls Housing Finance and NMDC. 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 increased by 1.71% and reached 12.28. The 50 share Nifty down by 16.10 points or 0.10% to settle at 15,818.25.
Nifty July 2021 futures closed at 15832.00 (LTP) on Tuesday, at a premium of 13.75 points over spot closing of 15818.25, while Nifty August 2021 futures ended at 15881.50 (LTP), at a premium of 63.25 points over spot closing. Nifty July futures saw an addition of 6,214 units, taking the total open interest (Contracts) to 1,92,858 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, Tata Motors July 2021 futures traded at a discount of 0.60 points at 316.00 (LTP) compared with spot closing of 316.60. The numbers of contracts traded were 77,043 (Provisional).
Bajaj Finance July 2021 futures traded at a premium of 27.95 points at 6231.95 (LTP) compared with spot closing of 6204.00. The numbers of contracts traded were 34,693(Provisional).
HDFC Bank July 2021 futures traded at a premium of 6.90 points at 1538.85 (LTP) compared with spot closing of 1531.95. The numbers of contracts traded were 28,381(Provisional).
Reliance Industries July 2021 futures traded at a premium of 5.15 points at 2133.00 (LTP) compared with spot closing of 2127.85. The numbers of contracts traded were 25,708(Provisional).
SBIN July 2021 futures traded at a premium of 1.40 points at 430.70 (LTP) compared with spot closing of 429.30. The numbers of contracts traded were 21,782 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 418 units open interests. Among Nifty puts, 15800 SP from the July month expiry was the most active put with an addition of 264 units open interests. The maximum OI outstanding for Calls was at 16000 SP (52,850 units) and that for Puts was at 15500 SP (69,648 units). The respective Support and Resistance levels of Nifty are: Resistance 15,887.97 -- Pivot Point 15,844.48 -- Support -- 15,774.77.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for July month contract. The top five scrips with highest PCR on Indus Towers (0.98), BEL (0.87), Apollo Hospitals Enterprise (0.82), BPCL (0.76) and Coromandel International (0.74).
Among most active underlying, Tata Motors witnessed an addition of 9,426 units of Open Interest in the July month futures contract, Bajaj Finance witnessed an addition of 4,661 units of Open Interest in the July month futures contract, NMDC witnessed an addition of 3,858 units of Open Interest in the July month futures contract, HDFC Bank witnessed an addition of 3,960 units of Open Interest in the July month futures contract and Tata Steel witnessed an addition of 1,321 units of Open Interest in the July month futures contract (Provisional).