Nifty ends marginally in red; holds 9650 mark

After getting a firm start, Indian equity benchmark -- Nifty -- witnessed consolidation for the most part of the session and ended marginally in red on Tuesday, as investors took to caution on perceived GST hiccups. Finance Minister Arun Jaitley today confirmed GST will be officially rolled out on the midnight of June 30.  He said that in the short-term there will be some challenges, but it will have positive impact on GDP. Investors’ sentiments remained pessimistic with Fitch Rating’s latest report that demonetisation of old Rs 500 and 1,000 notes had a material impact on spending as reflected in significant slowing of GDP growth in January-March and warned that the ongoing steep decline in investment could spell risks to growth potential. However, downside was capped as India, pitching for a greater engagement with BRICS (Brazil, Russia, India, China and South Africa) nations on issues the international community addressed during BRICS Foreign Ministers meeting in Beijing. Shares of some airliners traded higher after the traffic data showed passengers carried by domestic airlines rose 17.36% to 1.01 crore in May 2017 over May 2016. Besides, shares of IT companies rose following overnight rebound in US technology stocks. Meanwhile, India has become the 71st country to ratify the United Nations TIR Convention, that will boost trade and regional integration across South Asia and beyond, fast-tracking the region's potential to become a strategic trade hub.

Traders were seen piling up positions in IT, Metal and Realty stocks, while selling was witnessed in Media, Financial Services and FMCG stocks.  The top gainers from the F&O segment were Indiabulls Real Estate, Tata Power Company and Container Corporation of India. On the other hand, the top losers were Indian Bank, The India Cements and Kaveri Seed Company.  In the index option segment, maximum OI continues to be seen in the 9500-10000 calls and 9000-9700 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 0.14% and reached 10.64. The 50-share Nifty was down by 4.05 points or 0.04% to settle at 9,653.50.

Nifty June 2017 futures closed at 9674.45 on Tuesday at a premium of 20.95 points over spot closing of 9653.50, while Nifty July 2017 futures ended at 9692.40, at a premium of 38.90 points over spot closing. Nifty June futures saw a contraction of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 21.07 million (mn) units. The near month derivatives contract will expire on June 29, 2017.

From the most active contracts, Tata Motors June 2017 futures traded at a premium of 1.30 points at 467.80 compared with spot closing of 466.50. The numbers of contracts traded were 16,128.

Tata Steel June 2017 futures traded at a premium of 2.05 points at 523.60 compared with spot closing of 521.55. The numbers of contracts traded were 12,605.

Yes Bank June 2017 futures traded at a premium of 5.25 points at 1448.30 compared with spot closing of 1443.05. The numbers of contracts traded were 12,323.

ICICI Bank June 2017 futures traded at a premium of 0.45 points at 292.75 compared with spot closing of 292.30. The numbers of contracts traded were 10,706.

Infosys June 2017 futures traded at a premium of 3.55 points at 947.80 compared with spot closing of 944.25. The numbers of contracts traded were 10,456.

Among Nifty calls, 9700 SP from the June month expiry was the most active call with an addition of 0.09 million open interests. Among Nifty puts, 9600 SP from the June month expiry was the most active put with a contraction of 0.32 million open interests. The maximum OI outstanding for Calls was at 9700 SP (6.67 mn) and that for Puts was at 9600 SP (5.96 mn). The respective Support and Resistance levels of Nifty are: Resistance 9672.08--- Pivot Point 9657.92--- Support --- 9639.33.

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for June month contract. The top five scrips with highest PCR on OI were Amara Raja Batteries (2.40), Oriental Bank of Commerce (1.95), Cipla (1.27), KPIT Technologies (1.19) and HDFC Bank (1.12).

Among most active underlying, Tata Motors witnessed a contraction of 0.26 million units of Open Interest in the June month futures contract, followed by Tata Steel witnessing a contraction of 0.27 million units of Open Interest in the June  month contract, Maruti Suzuki India witnessed an addition of 0.08 million units of Open Interest in the June month contract, Reliance Industries witnessed a contraction of 0.53 million units of Open Interest in the June  month future contract and State Bank of India witnessed a contraction of 1.61 million units of Open Interest in the June month future contract.