Nifty closes choppy session with mild losses

Indian local benchmark -- Nifty -- turned in favour of bears to close mildly lower on Tuesday, breaking its three-day winning streak, amid weak global cues due to geo-political concerns. Tension flared up on the Korean peninsula after North Korea launched a missile ahead of the G-20 meet slated to begin in Hamburg this weekend. However, losses were limited with the Fitch Ratings’ report that implementation of GST, albeit complex, will remove domestic trade barriers and help boost GDP growth over long term. Further, the Railway Minister Suresh Prabhu said that the India’s GDP growth to the tune of 8-9% was expected and the new tax rates would contribute significantly towards this. He also said the GST aims at increasing the number of taxpayers and, as the tax revenue rises, the GDP will also increase. Meanwhile, the Reserve Bank of India (RBI) has increased the foreign portfolio investor (FPI) investment limit in Central Government Securities (G-secs) as well as in State Development Loans (SDLs) for the quarter July-September 2017, which will be effective from July 4, 2017.

Traders were seen piling up positions in Financial Services, IT and Metal stocks, while selling was witnessed in Pharma, PSU and FMCG stocks. The top gainers from the F&O segment were Bata India, United Spirits and Torrent Power. On the other hand, the top losers were Jaiprakash Associates, GMR Infrastructure and Just Dial. 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 0.67% and reached 11.27. The 50-share Nifty was down by 1.70 points or 0.02% to settle at 9,613.30.

Nifty July 2017 futures closed at 9624.05 on Tuesday at a premium of 10.75 points over spot closing of 9613.30, while Nifty August 2017 futures ended at 9651.90, at a premium of 38.60 points over spot closing. Nifty July futures saw an addition of 0.41 million (mn) units, taking the total outstanding open interest (OI) to 20.17 million (mn) units. The near month derivatives contract will expire on July 27, 2017.

From the most active contracts, Reliance Industries July 2017 futures traded at a discount of 5.55 points at 1416.45 compared with spot closing of 1422.00. The numbers of contracts traded were 24,508.

Vedanta July 2017 futures traded at a premium of 1.30 points at 256.00 compared with spot closing of 254.70. The numbers of contracts traded were 14,451.

Yes Bank July 2017 futures traded at a premium of 3.00 points at 1490.05 compared with spot closing of 1487.05. The numbers of contracts traded were 12,807.

Infosys July 2017 futures traded at a premium of 4.25 points at 965.25 compared with spot closing of 961.00. The numbers of contracts traded were 10,656.

Hindalco Industries July 2017 futures traded at a premium of 0.60 points at 198.90 compared with spot closing of 198.30. The numbers of contracts traded were 10,109.

Among Nifty calls, 9700 SP from the July month expiry was the most active call with an addition of 0.49 million open interests. Among Nifty puts, 9600 SP from the July month expiry was the most active put with an addition of 0.56 million open interests. The maximum OI outstanding for Calls was at 9700 SP (3.87 mn) and that for Puts was at 9400 SP (6.06 mn). The respective Support and Resistance levels of Nifty are: Resistance 9644.13--- Pivot Point 9619.82--- Support --- 9588.98.

The Nifty Put Call Ratio (PCR) finally stood at 1 for July month contract. The top five scrips with highest PCR on OI were Mangalore Refinery & Petrochemicals (2), Torrent Power (2), Indraprastha Gas (2), SRF (1) and Cummins India (1).

Among most active underlying, Aditya Birla Nuvo witnessed an addition of 1.74 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessing an addition of 0.57 million units of Open Interest in the July month contract, Vedanta witnessed an addition of 0.93 million units of Open Interest in the July month contract, Maruti Suzuki India witnessed an addition of 0.03 million units of Open Interest in the July month future contract and Tata Steel witnessed a contraction of 0.78 million units of Open Interest in the July month future contract.