NSE gauge -- Nifty50 -- ended the session near intraday low point on Thursday. Market made slightly negative start and extended it losses, as Fitch Ratings cut India's growth forecast to 10 per cent for the current fiscal, from 12.8 per cent estimated earlier, due to slowing recovery post second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence. Market remained lower despite domestic rating agency ICRA’s report that the banking system's gross non-performing assets (GNPAs) are set to decline to at least 7.1 percent by March 2022, as against 7.6 percent at FY21-end. The NPAs will go lower on higher recoveries and upgrades, and also faster credit growth. In late afternoon session, market extended its downfall to touch intraday low point, as market got hit with a private report stating that the India's retail inflation likely to accelerate to seven-month high in June on rising food and fuel prices, staying above the Reserve Bank of India's comfort zone for a second straight month. While many of India's states have eased restrictions imposed to contain the coronavirus, supply-side disruptions remain and higher taxes on petroleum products continue to exert upward pressure on inflation. Finally, nifty ended the session with cut of over half a percent.
Most of the sectoral indices ended in red except IT. The top gainers from the F&O segment were COFORGE, IGL and Indus Tower. On the other hand, the top losers were Jindal Steel & Power, SAIL and Hindustan Petroleum Corporation. 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 11.03% and reached 13.56. The 50 share Nifty down by 151.75 points or 0.96% to settle at 15,727.90.
Nifty July 2021 futures closed at 15731.00 (LTP) on Thursday, at a premium of 3.10 points over spot closing of 15727.90, while Nifty August 2021 futures ended at 15779.90 (LTP), at a premium of 52.00 points over spot closing. Nifty July futures saw an addition of 28,228 units, taking the total open interest (OI) to 2,16,736 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 1.80 points at 304.35 (LTP) compared with spot closing of 306.15. The numbers of contracts traded were 33,116 (Provisional).
Reliance Industries July 2021 futures traded at a premium of 3.00 points at 2094.00 (LTP) compared with spot closing of 2091.00. The numbers of contracts traded were 29,125 (Provisional).
Tata Steel July 2021 futures traded at a premium of 3.00 points at 1193.00 (LTP) compared with spot closing of 1190.00. The numbers of contracts traded were 23,622 (Provisional).
TCS July 2021 futures traded at a discount of 2.00 points at 3251.00 (LTP) compared with spot closing of 3253.00. The numbers of contracts traded were 17,267 (Provisional).
SBIN July 2021 futures traded at a premium of 2.00 points at 426.50 (LTP) compared with spot closing of 424.50. The numbers of contracts traded were 17,218 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with an addition of 3,348 units open interests. Among Nifty puts, 15700 SP from the July month expiry was the most active put with an addition of 2,392 units open interests. The maximum OI outstanding for Calls was at 16000 SP (52,667 units) and that for Puts was at 15500 SP (62,898 units). The respective Support and Resistance levels of Nifty are: Resistance 15,848.13 -- Pivot Point 15,765.52 -- Support -- 15,645.28.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for July month contract. The top five scrips with highest PCR on Indus Towers (0.91), Apollo Hospitals Enterprise (0.86), BEL (0.83), Hindustan Petroleum Corporation (0.81) and AU Small Finance Bank (0.81).
Among most active underlying, Tata Motors witnessed an addition of 6,797 units of Open Interest in the July month futures contract, Tata Steel witnessed a contraction of 450 units of Open Interest in the July month futures contract, TCS witnessed an addition of 2,336 units of Open Interest in the July month futures contract, Reliance Industries witnessed an addition of 2,999 units of Open Interest in the July month futures contract and HDFC Bank witnessed an addition of 877 units of Open Interest in the July month futures contract (Provisional).