Nifty -- finished session above its crucial 16550 mark on Monday. Market made cautious start and turned volatile for little time, as private report stated that it is highly unlikely that India will become a $5 trillion economy by 2024-25 due to the slowdown caused by the COVID-19 pandemic. However, further market hold the grip and extended its gains, as the data released by the commerce ministry showed that the country's exports surged 49.85 per cent to $35.43 billion in July on account of healthy growth in petroleum, engineering, and gems and jewellery segments, even as the trade deficit widened to $10.97 billion during the month.
Index continued its positive trade, as support also came with ICRA Ratings’ report stating that most states are likely to be in better fiscal health this financial year as 20 of them are collectively carrying forward Rs 2.6 lakh crore borrowed in FY21 to this fiscal. It said this also explains why the states have been borrowing less so far this year despite the pandemic-driven revenue crunch and the soaring public expenses towards health and food.
Sentiments remained upbeat till the end of the session, as India's annual wholesale price inflation eased to 11.16% in July from the previous month's 12.07%, helped by lower increases in the cost of fuel and food items. A low-base effect also contributed to the WPI inflation in July, since it stood at minus 0.25% in the corresponding month of 2020.
Most of the sectoral indices ended in red except FMGC, Metal and Oil & Gas. The top gainers from the F&O segment were Apollo Hospitals, Tata Steel and Bajaj Finance. On the other hand, the top losers were Strides Pharma Science, Cadila Healthcare and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 16800 -17200 calls and 15800 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.59% and reached 13.46. The 50 share Nifty up by 33.95 points or 0.21% to settle at 16,563.05.
Nifty August 2021 futures closed at 16551.05 (LTP) on Monday, at a discount of 12.00 points over spot closing of 16563.05, while Nifty September 2021 futures ended at 16588.00 (LTP), at a premium of 24.95 points over spot closing. Nifty August futures saw a contraction of 256 units, taking the total open interest (Contracts) to 2,72,698 units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, Reliance Industries August 2021 futures traded at a discount of 1.05 points at 2167.95 (LTP) compared with spot closing of 2169.00. The numbers of contracts traded were 68,265 (Provisional).
Tata Steel August 2021 futures traded at a discount of 2.35 points at 1512.95 (LTP) compared with spot closing of 1515.30. The numbers of contracts traded were 49,821 (Provisional).
JSW Steel August 2021 futures traded at a premium of 2.65 points at 761.50 (LTP) compared with spot closing of 758.85. The numbers of contracts traded were 27,466 (Provisional).
Vedanta August 2021 futures traded at a premium of 0.35 points at 336.80 (LTP) compared with spot closing of 336.45. The numbers of contracts traded were 20,231 (Provisional).
Apollo Hospitals August 2021 futures traded at a premium of 3.60 points at 4356.60 (LTP) compared with spot closing of 4353.00. The numbers of contracts traded were 17,996 (Provisional).
Among, Nifty calls, 16600 SP from the August month expiry was the most active call with an addition of 1,340 units open interests. Among Nifty puts, 16500 SP from the August month expiry was the most active put with an addition of 16,542 units open interests. The maximum OI outstanding for Calls was at 17000 SP (34,845 units) and that for Puts was at 16000 SP (76,655 units). The respective Support and Resistance levels of Nifty are: Resistance 16,608.05 -- Pivot Point 16,544.40 -- Support -- 16,499.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.78) for August month contract. The top five scrips with highest PCR on Tata Chemicals (0.98), HDFC (0.91), TCS (0.84), Infosys (0.81) and Kotak Mahindra Bank (0.80).
Among most active underlying, Tata Steel witnessed an addition of 1,010 units of Open Interest in the August month futures contract, Reliance Industries witnessed a contraction of 1,364 units of Open Interest in the August month futures contract, JSW Steel witnessed an addition of 2,072 units of Open Interest in the August month futures contract, Vedanta witnessed an addition of 1,561 units of Open Interest in the August month futures contract and Apollo Hospitals witnessed an addition of 1,822 units of Open Interest in the August month futures contract (Provisional).