Nifty -- ended Tuesday’s session above its crucial 15,800 level. Market made positive start, as India’s industrial production grew 29.3 per cent in May over the same period a year ago, as the impact of a favourable base continued for yet another month. Index extended its gains with India Ratings and Research’s (Ind-Ra) report that loan collections on securitized portfolios, which had taken a hit because of the second wave of COVID-19 pandemic, are set to recover. It also said the collection efficiency on those loans had dropped to 69.2 per cent in May from 82.8 per cent in March. Sentiments remained upbeat with a private report that the Indian economy is at the start of a virtuous cycle and on the path to becoming a $15 trillion economy over the next two decades.
Traders overlooked government data showed retail inflation remained above the RBI's comfort level for the second consecutive month despite slipping slightly to 6.26 per cent in June while the factory output recorded a growth of 29.3 per cent in May, mainly on account of the base effect. Market continued the gaining monument with private report stating that business activity has climbed back to the pre-second wave levels with the seventh consecutive week of surge in levels as new coronavirus infection cases decrease. Finally, Nifty ended the session with gains of above half a percent.
Most of the sectoral indices ended in green except FMGC, Media and IT. The top gainers from the F&O segment were Aditya Birla Fashion and Retail, NMDC and MRF. On the other hand, the top losers were ICICI Lombard General Insurance, LTTS and Info Edge. 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 2.84% and reached 12.62. The 50 share Nifty up by 119.75 points or 0.76% to settle at 15,812.35.
Nifty July 2021 futures closed at 15833.95 (LTP) on Tuesday, at a premium of 21.60 points over spot closing of 15812.35, while Nifty August 2021 futures ended at 15868.00 (LTP), at a premium of 55.65 points over spot closing. Nifty July futures saw an addition of 1,006 units, taking the total open interest (OI) to 1,89,052 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, ICICI Bank July 2021 futures traded at a premium of 0.70 points at 664.70 (LTP) compared with spot closing of 664.00. The numbers of contracts traded were 25,459 (Provisional).
HDFC Bank July 2021 futures traded at a premium of 6.70 points at 1507.10 (LTP) compared with spot closing of 1500.40. The numbers of contracts traded were 20,395 (Provisional).
Reliance Industries July 2021 futures traded at a premium of 3.50 points at 2102.50 (LTP) compared with spot closing of 2099.00. The numbers of contracts traded were 19,849 (Provisional).
HDFC July 2021 futures traded at a premium of 3.90 points at 2546.00 (LTP) compared with spot closing of 2542.10. The numbers of contracts traded were 18,824 (Provisional).
Tata Motors July 2021 futures traded at a premium of 0.85 points at 311.50 (LTP) compared with spot closing of 310.65. The numbers of contracts traded were 15,395 (Provisional).
Among, Nifty calls, 16000 SP from the July month expiry was the most active call with a contraction of 1,009 units open interests. Among Nifty puts, 15800 SP from the July month expiry was the most active put with an addition of 4,488 units open interests. The maximum OI outstanding for Calls was at 16000 SP (55,483 units) and that for Puts was at 15500 SP (64,341 units). The respective Support and Resistance levels of Nifty are: Resistance 15,840.57 -- Pivot Point 15,792.58 -- Support --15,764.37.
The Nifty Put Call Ratio (PCR) finally stood at (1.32) for July month contract. The top five scrips with highest PCR on AU Small Finance Bank (0.97), Apollo Hospitals Enterprise (0.90), Indus Towers (0.88), BEL (0.84) and ICICI Bank (0.81).
Among most active underlying, ICICI Bank witnessed an addition of 4,001units of Open Interest in the July month futures contract, HDFC Bank witnessed a contraction of 936 units of Open Interest in the July month futures contract, HDFC witnessed an addition of 2,374 units of Open Interest in the July month futures contract, Tata Motors witnessed a contraction of 1,081 units of Open Interest in the July month futures contract and Tata Steel witnessed an addition of 88 units of Open Interest in the July month futures contract (Provisional).