Nifty closes at record high despite technical glitches on NSE

Bulls tightened grip on the market with Indian equity benchmark -- Nifty -- settling at all time closing high even after trading remained shut on NSE in cash and F&O segment for almost 3 hours due to a technical glitch. Investors remained optimistic with the Associated Chambers of Commerce and Industry of India’s (Assocham) report that the Goods and Services Tax (GST) will boost the competitiveness of micro, small and medium enterprises (MSMEs). Some support also came with Prime Minister Narendra Modi’s statement that Goods and Services Tax (GST) would help businesses and create a unified market of 1.3 billion people. He also said that the GDP growth this year is likely to be more than 7 percent and India's reform agenda is continuously making progressing. Besides, foreign investors have pumped in nearly $23 billion into the Indian capital markets in January-June 2017 on several factors, including expectations of accelerated pace of reforms. Higher European and Asian markets, following a weekend rally on Wall Street that came on the back of forecast-busting jobs data, too bolstered trading sentiments. Meanwhile, continuing to tighten norms for participatory notes, markets regulator Securities and Exchange Board of India (SEBI) came out with guidelines for issuance of such instruments where the underlying assets are derivatives.

All indices ended in green. The top gainers from the F&O segment were Divi's Laboratories, Reliance Communications and Punjab National Bank.  On the other hand, the top losers were IDFC, Biocon and Shriram Transport Finance 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 0.41% and reached 10.91. The 50-share Nifty was up by 105.25 points or 1.09% to settle at 9,771.05.

From the most active contracts, Punjab National Bank July 2017 futures traded at a premium of 3.40 points at 153.35 compared with spot closing of 149.95. The numbers of contracts traded were 16,383.

Sun Pharmaceutical Industries July 2017 futures traded at a premium of 8.15 points at 566.15 compared with spot closing of 558.00. The numbers of contracts traded were 11,885.

State Bank of India July 2017 futures traded at a premium of 2.15 points at 287.00 compared with spot closing of 284.85. The numbers of contracts traded were 11,560.

Tata Consultancy Services July 2017 futures traded at a premium of 8.05 points at 2438.35 compared with spot closing of 2430.30. The numbers of contracts traded were 10,748.

Reliance Industries July 2017 futures traded at a discount of 13.80 points at 1486.20 compared with spot closing of 1500.00. The numbers of contracts traded were 10,308.

Among Nifty calls, 9800 SP from the July month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 9700 SP from the July month expiry was the most active put with an addition of 2.11 million open interests. The maximum OI outstanding for Calls was at 9800 SP (4.01 mn) and that for Puts was at 9600 SP (6.72 mn). The respective Support and Resistance levels of Nifty are: Resistance 9819.98--- Pivot Point 9733.22--- Support --- 9684.28.

The Nifty Put Call Ratio (PCR) finally stood at 1.36 for July month contract. The top five scrips with highest PCR on OI were Indraprastha Gas (1.33), Indiabulls Real Estate (1.29), WIPRO (1.19), Engineers India (1.18) and Vedanta (1.01).

Among most active underlying, State Bank of India witnessed a contraction of 4.62 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessing a contraction of 0.37 million units of Open Interest in the July month contract, Punjab National Bank witnessed a contraction of 6.05 million units of Open Interest in the July month contract, Canara Bank witnessed a contraction of 0.38 million units of Open Interest in the July month future contract and Tata Motors witnessed a contraction of 1.28 million units of Open Interest in the July month future contract.