Nifty ends at fresh record high

Indian equity benchmark -- Nifty -- closed the range-bound session at fresh record high on Monday after the GST Council finalised rates for some commodities and looked confident of the indirect tax regime's rollout scheduled from July 1. Services sector growth rising at fastest pace in 4 months in May also lifted the sentiments. The seasonally adjusted Nikkei Business Activity index surged to 52.2 in May from 50.2 in April and the seasonally adjusted Nikkei India Composite PMI Output Index which measures both manufacturing and services also increased to 52.5 in May from 51.3 in April to reach at a seven month high. Traders also took some support with World Bank report which projected a strong 7.2 per cent growth rate for India this year against 6.8 per cent growth in 2016 and it noted that India is recovering from the temporary adverse effects of demonetization.  Besides, the newest edition of A.T. Kearney's Global Retail Development Index ranked India as the top developing country for retail investment. It said that India's strong GDP growth and growing middle class coupled with a more favorable regulatory environment over the past few years have played significant roles in attaining this ranking. However, the upside remained capped as investors remained cautious ahead of a central bank policy meeting due tomorrow.  Furthermore, India has been ranked 45th, down four notches from last year, in terms of competitiveness in the annual rankings compiled by the International Institute for Management Development's (IMD) World Competitiveness Center.

Traders were seen piling up positions in Realty, IT and Banking stocks, while selling was witnessed only in Metal and Pharma stocks. The top gainers from the F&O segment were Titan Company, Tata Elxsi and PC Jeweller. On the other hand, the top losers were KPIT Technologies, Sintex Industries and IFCI.  In the index option segment, maximum OI continues to be seen in the 9400-10000 calls and 9000-9600 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.89% and reached 11.01. The 50-share Nifty was up by 21.60 points or 0.22% to settle at 9,675.10.

Nifty June 2017 futures closed at 9685.50 on Monday at a premium of 10.40 points over spot closing of 9675.10, while Nifty July 2017 futures ended at 9708.05, at a premium of 32.95 points over spot closing. Nifty June futures saw a contraction of 0.02 million (mn) units, taking the total outstanding open interest (OI) to 22.12 million (mn) units. The near month derivatives contract will expire on June 29, 2017.

From the most active contracts, Titan Company June 2017 futures traded at a premium of 1.45 points at 552.95 compared with spot closing of 551.50. The numbers of contracts traded were 32,732.

Yes Bank June 2017 futures traded at a premium of 4.10 points at 1525.45 compared with spot closing of 1521.35. The numbers of contracts traded were 16,419 .

Tata Steel June 2017 futures traded at a premium of 2.80 points at 493.00 compared with spot closing of 490.20. The numbers of contracts traded were 10,861.

Reliance Industries June 2017 futures traded at a premium of 4.95 points at 1334.95 compared with spot closing of 1330.00. The numbers of contracts traded were 10,370.

United Spirit June 2017 futures traded at a discount of 7.20 points at 2489.80 compared with spot closing of 2497.00. The numbers of contracts traded were 9,685.

Among Nifty calls, 9700 SP from the June month expiry was the most active call with a contraction of 0.26 million open interests. Among Nifty puts, 9600 SP from the June month expiry was the most active put with an addition of 1.05 million open interests. The maximum OI outstanding for Calls was at 9700 SP (4.65 mn) and that for Puts was at 9500 SP (6.40 mn). The respective Support and Resistance levels of Nifty are: Resistance 9694.63--- Pivot Point 9667.67--- Support --- 9648.13.

The Nifty Put Call Ratio (PCR) finally stood at 1.23 for June month contract. The top five scrips with highest PCR on OI were Kajaria Ceramics (3.33), Amara Raja Batteries (2.61), Aditya Birla Nuvo (1.23), Indraprastha Gas (1.18) and Engineers India (1.13).

Among most active underlying, Titan Company witnessed an addition of 1.64 million units of Open Interest in the June month futures contract, followed by Tata Steel witnessing a contraction of 0.15 million units of Open Interest in the June  month contract, Yes Bank witnessed an addition of 0.11 million units of Open Interest in the June month contract, State Bank of India witnessed an addition of 1.85 million units of Open Interest in the June  month future contract and Reliance Industries witnessed an addition of 0.48 million units of Open Interest in the June month future contract.