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Nifty ends at record closing high after 5-day fall
Jul-26-2024

Indian equity benchmark -- Nifty – ended Friday’s trading session at fresh record closing high as traders went for value buying. Index made a slightly positive start and remained in green, as market participants took support with Reserve Bank of India Deputy Governor M Rajeshwar Rao’s statement that Indian financial system looks stronger than in the past and the country's economy is an outlier even as strong headwinds globally. Some support also came with DIPAM Secretary Tuhin Kanta Pandey's statement that the focus of the government will be to improve the performance of CPSEs with a view to maximise wealth creation and not to push disinvestment just to meet targets. He said the market capitalisation of 77 listed public sector entities, which include banks, insurance companies and Central Public Sector Enterprises (CPSEs), has jumped 4 times in the last three years to about Rs 73 lakh crore. 

Index continued its northward journey in noon deal, as sentiments remained positive after the government eased certain norms for licence holders of the Export Promotion Capital Goods scheme as part of its ease of doing business efforts. The EPCG scheme facilitates import of capital goods for producing quality goods and services and enhances India's manufacturing competitiveness. It allows import of capital goods for pre-production, production and post-production at zero customs duty. In last leg of trade, Index extended its gains to surpassed 24800 mark.

All the sectorial indices ended in green. The top gainers from the F&O segment were Shriram Finance, Bharat Forge and Mphasis. On the other hand, the top losers Federal Bank, United Breweries and United Spirits. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 24400 - 24600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.93% and reached 12.25. The 50 share Nifty up by 428.75 points or 1.76% to settle at 24,834.85.

Nifty August 2024 futures closed at 24915.10 (LTP) on Friday, at a premium of 80.25 points over spot closing of 24834.85, while Nifty September 2024 futures ended at 25030.00 (LTP), at a premium of 195.15 points over spot closing. Nifty August futures saw an addition of 55,180 units, taking the total outstanding open interest (Contracts) to 5,76,054 units. The near month derivatives contract will expire on August 29, 2024. (Provisional) 

From the most active contracts, HDFC Bank August 2024 futures traded at a premium of 7.60 points at 1623.90 (LTP) compared with spot closing of 1616.30. The numbers of contracts traded were 69,131. (Provisional) 

ICICI Bank August 2024 futures traded at a discount of 2.05 points at 1214.95 (LTP) compared with spot closing of 1217.00. The numbers of contracts traded were 62,320. (Provisional) 

Tata Motors August 2024 futures traded at a premium of 5.45 points at 1121.50 (LTP) compared with spot closing of 1116.05. The numbers of contracts traded were 47,674. (Provisional) 

Reliance Industries August 2024 futures traded at a premium of 8.35 points at 3026.95 (LTP) compared with spot closing of 3018.60. The numbers of contracts traded were 45,743. (Provisional) 

State Bank of India August 2024 futures traded at a premium of 3.40 points at 863.35 (LTP) compared with spot closing of 859.95. The numbers of contracts traded were 42,039. (Provisional) 

Among, Nifty calls, 24500 SP from the August month expiry was the most active call with an addition of 8,013 units open interests. Among Nifty puts, 24500 SP from the August month expiry was the most active put with an addition of 14,049 units open interests. The maximum OI outstanding for Calls was at 26000 SP (87,086 units) and that for Puts was at 24500 SP (1,52,053 units). The respective Support and Resistance levels of Nifty are: Resistance 24,993.70 -- Pivot Point 24,702.30 -- Support 24,543.45.

The Nifty Put Call Ratio (PCR) finally stood at (1.40) for August month contract. The top five scrips with highest PCR on Petronet LNG (1.42), Dr Reddy's Laboratories (1.37), India Cements (1.36), MRF (1.34), and Dr. Lal PathLabs (1.31).

Among most active underlying, HDFC Bank witnessed an addition of 3,921 units of Open Interest in the August month future, ICICI Bank witnessed an addition of 7,891 units of Open Interest in the August month futures, Reliance Industries witnessed an addition 2,543 units of Open Interest in the August month futures, Shriram Finance witnessed an addition of 1,694 units of Open Interest in the August month future and Tech Mahindra witnessed a contraction of 735 units of Open Interest in the August month futures. (Provisional)

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