Nifty ended Wednesday’s session below 16600 mark. Market made positive start, as the government announced the much-awaited guidelines and tax refund rates for the export boosting scheme Remission of Duties and Taxes on Export Products (RoDTEP) for 8,555 export items. Market maintained its gains in green territory, as RBI article said the economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions. However, market failed to hold gains and entered into red zone, as CMIE’s latest data showed that unemployment rate in urban India has been on the rise since the beginning of the current month. From 8.03% for the week ended August 1, it jumped to 9.96% in the next week and further to an eight-week high of 10.23% for the week ended August 15. At a time when the rural joblessness is hovering between 6-7% since July - it touched 7.01% for the week ended August 15, the spike in urban unemployment rate to double-digit reflects the continued labour market stress in the non-agricultural sectors. Finally, nifty finished the day’s trade in red zone.
Most of the sectoral indices ended in red except FMGC, IT and Pharma. The top gainers from the F&O segment were Vodafone Idea, United Spirits and UBL. On the other hand, the top losers were Hindalco, Kotak Mahindra Bank and Apollo Hospitals Enterprise. In the index option segment, maximum OI continues to be seen in the 16800 -17200 calls and 16000 -16550 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.78% and reached 12.91. The 50 share Nifty down by 58.00 points or 0.35% to settle at 16,556.60.
Nifty August 2021 futures closed at 16559.80 (LTP) on Wednesday, at a premium of 3.20 points over spot closing of 16556.60, while Nifty September 2021 futures ended at 16596.55 (LTP), at a premium of 39.95 points over spot closing. Nifty August futures saw a contraction of 2,502 units, taking the total open interest (Contracts) to 2,61,583 units. The near month derivatives contract will expire on August 26, 2021 (Provisional).
From the most active contracts, HDFC Bank August 2021 futures traded at a discount of 1.35 points at 1510.15 (LTP) compared with spot closing of 1511.50. The numbers of contracts traded were 32,968 (Provisional).
Reliance Industries August 2021 futures traded at a premium of 3.00 points at 2171.00 (LTP) compared with spot closing of 2168.00. The numbers of contracts traded were 23,945 (Provisional).
Bajaj Finance August 2021 futures traded at a discount of 8.00 points at 6536.00 (LTP) compared with spot closing of 6544.00. The numbers of contracts traded were 22,526 (Provisional).
Tata Steel August 2021 futures traded at a premium of 1.80 points at 1499.00 (LTP) compared with spot closing of 1497.20. The numbers of contracts traded were 22,294 (Provisional).
United Spirits August 2021 futures traded at a premium of 0.45 points at 722.45 (LTP) compared with spot closing of 722.00. The numbers of contracts traded were 19,498 (Provisional).
Among, Nifty calls, 16700 SP from the August month expiry was the most active call with an addition of 33,234 units open interests. Among Nifty puts, 16500 SP from the August month expiry was the most active put with an addition of 11,825 units open interests. The maximum OI outstanding for Calls was at 17000 SP (70,120 units) and that for Puts was at 16500 SP (70,120 units). The respective Support and Resistance levels of Nifty are: Resistance 16,658.70 -- Pivot Point 16,599.75 -- Support -- 16,497.65.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for August month contract. The top five scrips with highest PCR on TCS (1.02), Apollo Hospitals (0.99), Tata Chemicals (0.92), Bajaj Finserv (0.83) and Bajaj Finance (0.83).
Among most active underlying, Tata Steel witnessed an addition of 458 units of Open Interest in the August month futures contract, HDFC Bank witnessed a contraction of 1,594 units of Open Interest in the August month futures contract, Bajaj Finance witnessed an addition of 659 units of Open Interest in the August month futures contract, United Spirits witnessed an addition of 1,222 units of Open Interest in the August month futures contract and ICICI Bank witnessed an addition of 4,376 units of Open Interest in the August month futures contract (Provisional).