Nifty ended highly volatile trading session in red zone on Wednesday. After making cautious start, market gain traction with Niti Aayog member V K Saraswat’s statement that the Indian innovation ecosystem is driven by knowledge economy, fundamental research driven by marketplace, and disruptive technologies like machine learning and artificial intelligence. However, market turned volatile, as the Asian Development Bank (ADB) downgraded its 2021 economic growth outlook for India -- the subregion's largest economy -- to 10 per cent from 11 per cent in 2021. However, it said the outlook for next year has improved to 7.5 per cent from 7 per cent. Further, market traded near neutral line with positive bias but in last leg of trade, market failed to hold gains and ended the session in red, as Organisation for Economic Co-operation and Development (OECD) in its latest report has cut its projection of India's economic growth by 0.2 percentage points to 9.7 per cent for the current financial year (FY22).
Most of the sectoral indices ended in green except Bank, FMCG and Private Bank. The top gainers from the F&O segment were ZEEL, Godrej Properties and DLF. On the other hand, the top losers were Interglobe Aviation, Metropolis and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16900 -17150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 16.49% and reached 0.16. The 50 share Nifty down by 15.35 points or 0.08% to settle at 17,546.65.
Nifty September 2021 futures closed at 17567.00 (LTP) on Wednesday, at a premium of 20.35 points over spot closing of 17546.65, while Nifty October 2021 futures ended at 17604.25 (LTP), at a premium of 57.60 points over spot closing. Nifty September futures saw an addition of 684 units, taking the total outstanding open interest (OI) to 2,57,808 units. The near month derivatives contract will expire on September 30, 2021 (Provisional).
From the most active contracts, ZEEL September 2021 futures traded at a premium of 0.30 points at 334.00 (LTP) compared with spot closing of 333.70. The numbers of contracts traded were 73,397 (Provisional).
Adani Ports September 2021 futures traded at a discount of 0.25 points at 745.75 (LTP) compared with spot closing of 746.00. The numbers of contracts traded were 49,772 (Provisional).
Reliance Industries September 2021 futures traded at a premium of 6.20 points at 2437.00 (LTP) compared with spot closing of 2430.80. The numbers of contracts traded were 31,952 (Provisional).
ITC September 2021 futures traded at a discount of 0.05 points at 242.95 (LTP) compared with spot closing of 243.00. The numbers of contracts traded were 24,553 (Provisional).
Tata Steel September 2021 futures traded at a premium of 2.90 points at 1305.90 (LTP) compared with spot closing of 1303.00. The numbers of contracts traded were 21,751 (Provisional).
Among, Nifty calls, 17600 SP from the September month expiry was the most active call with an addition of 6,073 units open interests. Among Nifty puts, 17500 SP from the September month expiry was the most active put with an addition of 7,185 units open interests. The maximum OI outstanding for Calls was at 18000 SP (39,778 units) and that for Puts was at 17000 SP (65,985 units). The respective Support and Resistance levels of Nifty are: Resistance 17,596.73 -- Pivot Point 17,560.37 -- Support -- 17,510.28.
The Nifty Put Call Ratio (PCR) finally stood at (1.38) for September month contract. The top five scrips with highest PCR on ZEEL (1.29), Voltas (0.92), Bajaj Finance (0.88), Mindtree (0.85) and Kotak Mahindra Bank (0.85).
Among most active underlying, ZEEL witnessed an addition of 692 units of Open Interest in the September month futures contract, Adani Ports witnessed an addition of 14,985 units of Open Interest in the September month futures contract, DLF witnessed an addition of 200 units of Open Interest in the September month futures contract, Tata Steel witnessed an addition of 723 units of Open Interest in the September month futures contract and Reliance Industries witnessed an addition of 1,679 units of Open Interest in the September month futures contract.
