Indian local benchmark Nifty continued gaining streak for the third straight session on Wednesday to close at fresh closing high, ahead of the release of key macroeconomic data. Consumer inflation data for June and IIP data for May is scheduled to be announced after market hours today. Traders took encouragement with Finance minister Arun Jaitley’s statement where he called for more credit disbursement towards the unorganized sector, saying it will help push employment growth. Jaitley said diverting resources of banks and financial institutions through various schemes towards the unorganized sector will help create more jobs in the country. Some support also came with Commerce & Industry Minister Nirmala Sitharaman’s statement that the government’s e-market (GeM) platform has led to a 20-30 percent reduction in prices compared to before and added that use of GeM portal by central and state departments for procurement of goods and services will help in saving taxpayers’ money. However, gains remained capped, as traders stayed cautions ahead of Fed chair Janet Yellen’s testimony to the US Congress. Meanwhile, the finance ministry is gearing up to introduce a host of Bills, including the Banking Regulation (Amendment) Bill, repeal of State Bank of India (Subsidiary Banks) Act, 1959, among others, in the upcoming Monsoon Session.
Traders were seen piling up positions in PSU, Media and Metal stocks, while selling was witnessed only in IT stocks. The top gainers from the F&O segment were Biocon, Sintex Industries and PTC India. On the other hand, the top losers were Torrent Pharmaceuticals, Ajanta Pharma and GMR Infrastructure. In the index option segment, maximum OI continues to be seen in the 9500-10000 calls and 9000-9800 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 1.49% and reached 11.05. The 50-share Nifty was up by 30.05 points or 0.31% to settle at 9,816.10.
Nifty July 2017 futures closed at 9822.35 on Wednesday at a premium of 6.25 points over spot closing of 9816.10, while Nifty August 2017 futures ended at 9854.65, at a premium of 38.55 points over spot closing. Nifty July futures saw an addition of 0.42 million (mn) units, taking the total outstanding open interest (OI) to 20.85 million (mn) units. The near month derivatives contract will expire on July 27, 2017.
From the most active contracts, Biocon July 2017 futures traded at a discount of 1.75 points at 367.45 compared with spot closing of 369.20. The numbers of contracts traded were 25,240.
Reliance Industries July 2017 futures traded at a discount of 7.35 points at 1503.90 compared with spot closing of 1511.25. The numbers of contracts traded were 20,948.
Hindustan Petroleum Corporation July 2017 futures traded at a premium of 0.25 points at 359.85 compared with spot closing of 359.60. The numbers of contracts traded were 9,662.
Bharat Financial Inclusion July 2017 futures traded at a premium of 3.40 points at 767.10 compared with spot closing of 763.70. The numbers of contracts traded were 9,546 .
Adani Enterprises July 2017 futures traded at a premium of 0.50 points at 142.00 compared with spot closing of 141.50. The numbers of contracts traded were 9,252.
Among Nifty calls, 9800 SP from the July month expiry was the most active call with a contraction of 0.06 million open interests. Among Nifty puts, 9700 SP from the July month expiry was the most active put with an addition of 0.86 million open interests. The maximum OI outstanding for Calls was at 10000 SP (4.30 mn) and that for Puts was at 9600 SP (6.70 mn). The respective Support and Resistance levels of Nifty are: Resistance 9831.47--- Pivot Point 9809.58--- Support --- 9794.22.
The Nifty Put Call Ratio (PCR) finally stood at 1.45 for July month contract. The top five scrips with highest PCR on OI were Indiabulls Real Estate (1.37), Engineers India (1.15), Maruti Suzuki India (1.01), BOSCH (1.00) and Jubilant FoodWorks (0.95).
Among most active underlying, Reliance Industries witnessed an addition of 0.03 million units of Open Interest in the July month futures contract, followed by Biocon witnessing an addition of 2.03 million units of Open Interest in the July month contract, Adani Enterprises witnessed an addition of 2.59 million units of Open Interest in the July month contract, State Bank of India witnessed an addition of 0.06 million units of Open Interest in the July month future contract and IndusInd Bank witnessed an addition of 0.10 million units of Open Interest in the July month future contract.
