Nifty snaps five-day winning streak

Indian equity index -- Nifty -- ended lower, amid volatile trading session, as market participants booked profits at higher level. Further, traders remained cautious ahead of GDP data for the March quarter and fiscal deficit data for the month of March later today. India's GDP growth for the fourth quarter of 2015-16 is likely to be around 7.1 per cent, but slow private sector capital expenditure (capex) spending and stressed banking sector will weigh on the economy's growth potential this year. However, down side remained capped as some support came in with former Singapore Prime Minister Goh Chok Tong's statement that India is a beacon of hope and has the potential to drive the world economy for the next 10 years, amid concerns of slowing global growth. Besides, traders also got some encouragement with Finance Minister Arun Jaitley's statement that With China slowing down, the world is now looking for 'other shoulders to rest its growth on' and India, with planned infrastructure spending to bridge deficit, can be a very powerful driver. Meanwhile, commerce and industry minister Nirmala Sitharaman said that the India's FDI equity flow jumped to $60.04 billion between June 2014 and January 2016, up 53% from $39.19 billion during the preceding 20 months.

On the global front, Asian markets ended mixed even as Chinese and Hong Kong shares posted strong gains on optimism that the odds of mainland Chinese stocks winning MSCI inclusion have increased. European markets were trading lower, with car makers and oil giants leading decliners on the back of a Volkswagen AG trading update and a slump in oil prices.

Bach home, Indian equity benchmark soon, after making a positive opening, entered into a negative territory and continued to trade in tight range for the most part of day's trade. However, value buying witnessed in the last hour of trade that lifted the market in green for the short period of time, thereafter, market once again entered into red and finally ended with cut of over 18 points. The top gainers from the F&O segment were Tata Motors- DVR, Tata Motors and Canara Bank. On the other hand, the top losers were Sun Pharmaceuticals Industries, Jain Irrigation Systems and Havells India. In the index options segment, maximum OI was being seen in the 8000-8500 calls and 7000-8100 puts. In today's session, while the traders preferred to exit 7700 put, heavy buildup was seen in the 7400 put. On the other hand, traders exited from 7800 Call, while 8500 call witnessed considerable OI addition.   

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.44% and reached 16.04. The 50-share Nifty was down by 18.40 points or 0.22% to settle at 8,160.10.   

Nifty June 2016 futures closed at 8190.90 on Tuesday’s at a premium of 30.80 points over spot closing of 8,160.10, while Nifty July 2016 futures ended at 8211.50 at a premium of 51.40 points over spot closing. Nifty June futures saw contraction of 0.06 million (mn) units, taking the total outstanding open interest (OI) to 21.63 million (mn) units. The near month derivatives contract will expire on June 30, 2016.                              

From the most active contracts, SBI June 2016 futures traded at a discount of 1.70 points at 203.60 compared with spot closing of 205.30. The number of contracts traded were 41,529.                

ICICI Bank June 2016 futures traded at a discount of 2.75 points at 241.45 compared with spot closing of 244.20. The number of contracts traded were 14,437.          

Rural Electrification Corporation June 2016 futures traded at a premium of 0.15 points at 161.55 compared with spot closing of 161.40. The number of contracts traded were 12,303.  

Tata Motors June 2016 futures traded at a premium of 2.00 points at 457.60 compared with spot closing of 455.60. The number of contracts traded were 67,448.                

Tata Steel June 2016 futures traded at a premium of 3.00 points at 337.05 compared with spot closing of 334.05. The number of contracts traded were 19,079.         

Among Nifty calls, 8300 SP from the May month expiry was the most active call with an addition of 0.41 million open interests. Among Nifty puts, 8000 SP from the May month expiry was the most active put with an addition of 0.60 million open interests. The maximum OI outstanding for Calls was at 8400 SP (3.67 mn) and that for Puts was at 8000 SP (5.97 mn). The respective Support and Resistance levels of Nifty are: Resistance 8204.37 --- Pivot Point 8169.33 --- Support --- 8125.07.             

The Nifty Put Call Ratio (PCR) finally stood at 1.15 for May month contract. The top five scrips with highest PCR on OI were Indusind Bank (1.45), UCO Bank (1.27), Maruti Suzuki India (1.17), Ajanta Pharma (1.13) and Aditya Birla Nuvo (1.10).  

Among most active underlying, Tata Motors  witnessed an addition of 3.82 million of Open Interest in the May month futures contract, followed State Bank of India witnessing an addition of 3.79 million of Open Interest in the May month contract; Sun Pharmaceuticals Industries witnessed an addition of 1.22 million of Open Interest in the May month contract, Tata Steel witnessed an addition of 1.09 million of Open Interest in the May month contract and Yes Bank witnessed an addition of 0.69 million units of Open Interest in the May month's future contract.