Firm global cues help Nifty to end near 9,900 mark

Recovering most of its previous session’s losses, the local benchmark Nifty ended the trade almost at its crucial 9,900 mark, on the back of positive global cues and encouraging earnings updates. The index traded on a strong note throughout the session with taking support from NITI Aayog Vice Chairman Arvind Panagariya’s statement that India’s GDP could rise to about $8 trillion over the next 15 years if the country registers an economic growth of 8 percent annually and come very close to eliminating abject poverty entirely. Some optimism also came with Finance Minister Arun Jaitley’s statement that the Goods and Services Tax (GST) is a win- win deal for all as it will expand the tax net, end inspector raj and bring down prices of goods. Besides, private report stating that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut, too aided the sentiments.

All the sectoral indices on NSE ended in the green. The top gainers from the F&O segment were Idea Cellular, Jain Irrigation Systems and Mangalore Refinery and Petrochemicals. On the other hand, the top losers were UltraTech Cement, Jubilant Foodworks and Pidilite Industries. In the index option segment, maximum OI continues to be seen in the 9700-10200 calls and 9300-9900 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.05% and reached 11.25. The 50-share Nifty was up by 72.45 points or 0.74% to settle at 9,899.60.

Nifty July 2017 futures closed at 9919.15 on Wednesday at a premium of 19.55 points over spot closing of 9899.60, while Nifty August 2017 futures ended at 9953.35 at a premium of 53.75 points over spot closing. Nifty July futures saw a contraction of 0.48 million (mn) units, taking the total outstanding open interest (OI) to 18.45 million (mn) units. The near month derivatives contract will expire on July 27, 2017.

From the most active contracts, Aurobindo Pharma July 2017 futures traded at a premium of 4.65 points at 768.70 compared with spot closing of 764.05. The numbers of contracts traded were 25,685.

ITC July 2017 futures traded at a discount of 0.30 points at 291.65 compared with spot closing of 291.95. The numbers of contracts traded were 19,989.

Bajaj Finance July 2017 futures traded at a premium of 0.55 points at 1544.55 compared with spot closing of 1544.00. The numbers of contracts traded were 17,080.

Hindustan Unilever July 2017 futures traded at a discount of 1.20 points at 1155.30 compared with spot closing of 1156.50. The numbers of contracts traded were 15,877.

Havells India July 2017 futures traded at a premium of 0.60 points at 468.35 compared with spot closing of 467.75. The numbers of contracts traded were 15,467.

Among Nifty calls, 9900 SP from the July month expiry was the most active call with a contraction of 1.90 million open interests. Among Nifty puts, 9800 SP from the July month expiry was the most active put with an addition of 0.63 million open interests. The maximum OI outstanding for Calls was at 10000 SP (5.74mn) and that for Puts was at 9800 SP (6.50 mn). The respective Support and Resistance levels of Nifty are: Resistance 9919.22--- Pivot Point 9885.43--- Support --- 9865.82.

The Nifty Put Call Ratio (PCR) finally stood at 1.49 for July month contract. The top five scrips with highest PCR on OI were Indiabulls Real Estate (1.34), Bharti Airtel (1.27), Hindalco Industries (1.21), Ujjivan Financial Services (1.20) and HCL Technologies (1.17).

Among most active underlying, ITC witnessed a contraction of 6.26 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessing an addition of 0.25 million units of Open Interest in the July month contract, Aurobindo Pharma witnessed an addition of 0.67 million units of Open Interest in the July month contract, Hindustan Unilever witnessed a contraction of 0.69 million units of Open Interest in the July month future contract and Havells India witnessed an addition of 0.09 million units of Open Interest in the July month future contract.