Indian equity benchmark -- Nifty -- ended Wednesday’s trading session with notable gains. After a cautious start, market remained lower in early deals, amid rising coronavirus cases in the country. India has recorded a spike of 40,215 fresh Covid-19 cases in the last 24 hours, taking the total caseload to 30,944,949, according to Worldometer. The death count increased to 411,439 with 623 new fatalities, the data showed. Traders took note of report that global rating agency Standard and Poor’s has affirmed India’s sovereign rating at BBB- and maintained a stable outlook on gradual recovery in the economy. It said India’s recovery will gather pace through the second half of FY22 and into the following year, helping to stabilise the country’s overall credit profile.
However, index cut all of its losses in late morning session and traded in green terrain till the end of the trading session. Sentiments remained upbeat as wholesale price-based inflation eased marginally to 12.07 per cent in June as crude oil and food items witnessed some softening in prices. However, WPI inflation remained in double digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81 per cent, in June 2020. Additional support also came with report that the government may extend the scheme for investment promotion 2017-20, with an aim to attract investors and promote economic growth of the country.
Traders were seen piling up positions in IT, Pharma and Media stocks, while selling was witnessed in Realty, PSU Bank and Auto. The top gainers from the F&O segment were MPHASIS, Mindtree and Wipro. On the other hand, the top losers were Indiabulls Housing Finance, Piramal Enterprises and MGL. In the index option segment, maximum OI continues to be seen in the 15900 -16100 calls and 14900 -15,100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.26% and reached 12.59. The 50 share Nifty up by 41.60 points or 0.26% to settle at 15,853.95.
Nifty July 2021 futures closed at 15858.10 (LTP) on Wednesday, at a premium of 4.15 points over spot closing of 15853.95 (LTP), while Nifty August 2021 futures ended at 15794.55, at a discount of 59.40 points over spot closing. Nifty July futures saw an addition of 8,499 units, taking the total open interest (OI) to 1,94,371 units. The near month derivatives contract will expire on July 29, 2021 (Provisional).
From the most active contracts, Wipro July 2021 futures traded at a premium of 2.15 points at 563.70 (LTP) compared with spot closing of 561.55. The numbers of contracts traded were 26,175 (Provisional).
Mindtree July 2021 futures traded at a premium of 16.60 points at 2713.40 (LTP) compared with spot closing of 2696.80. The numbers of contracts traded were 24,858 (Provisional).
Infosys July 2021 futures traded at a premium of 5.60 points at 1583.00 (LTP) compared with spot closing of 1577.40. The numbers of contracts traded were 22,476 (Provisional).
Reliance Industries July 2021 futures traded at a premium of 6.80 points at 2090.35 compared (LTP) with spot closing of 2083.55. The numbers of contracts traded were 18,644 (Provisional).
Tata Steel July 2021 futures traded at a premium of 2.50 points at 1245.90 (LTP) compared with spot closing of 1243.40. The numbers of contracts traded were 13,805 (Provisional).
Among, Nifty calls, 16400 SP from the July month expiry was the most active call with a contraction of 4,755 units open interests. Among Nifty puts, 15700 SP from the July month expiry was the most active put with an addition of 5,958 units open interests. The maximum OI outstanding for Calls was at 16000 SP (52,692 units) and that for Puts was at 15000 SP (66,687 units). The respective Support and Resistance levels of Nifty are: Resistance 15,908.55 -- Pivot Point 15,842.80 -- Support -- 15,792.35.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for July month contract. The top five scrips with highest PCR on AU Small Finance Bank (1.00), Apollo Hospitals Enterprise (0.96), BEL (0.86) Mindtree (0.84), and IRCTC (0.79).
Among most active underlying, Mindtree witnessed an addition of 1,140 units of Open Interest in the July month futures contract, Wipro witnessed a contraction of 1,994 units of Open Interest in the July month futures contract, Infosys witnessed an addition of 1,063 units of Open Interest in the July month futures contract, Tata Steel witnessed a addition of 20 units of Open Interest in the July month futures contract and Reliance Industries witnessed an addition of 3,127 units of Open Interest in the July month futures contract (Provisional).