Nifty ends near intraday low point

Key Indian equity benchmark Nifty ended near intraday low point on last trading day of the week, below its crucial psychological level of 10,700. After a cautious start, the index traded in green during morning deals, amid report that Indian economy registered a growth of 7.7% for the fourth quarter of fiscal year 2017-18, highest in seven quarters, continuing its status as the world’s fastest-growing major economy. Some comfort also came with report highlighting that India’s core sector output grew at a marginally higher pace of 4.7% in April 2018, as compared to 4.4% in March 2018, helped by healthy performance in segments like coal, natural gas and cement. Separately, Union Finance Minister Piyush Goyal has asserted that nation’s economy is on the right track and set for even higher growth in the future. Some support also came with Moody’s Investors Service’s latest report stating that tax reforms are likely to expand revenue base in fast growing economies like India. However, Nifty erased all its gains in afternoon deals and slipped into red terrain, as domestic sentiments got hit after India’s manufacturing activity eased in the month of May, amid weaker expansions in output, new orders and employment. As per the survey report, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 51.2 in May from 51.6 in April. Anxiety also spread among traders with a report showing that GST collections in May declined to Rs 940.16 billion from over Rs 1.03 trillion in April. As many as 6.247 million businesses filed their summary sales return GSTR-3B in the month of May. Traders also got worried with a report that India’s per capita income grew at a slower pace of 8.6% to Rs 1,12,835 during the last fiscal ended March 2018. 

All the sectoral indices ended in red on the NSE except Auto. The top gainers from the F&O segment were Bajaj Auto, KPIT Technologies and Cholamandalam Investment and Finance. On the other hand, the top losers were Reliance Communications, GMR Infrastructure and PC Jeweller. In the index option segment, maximum OI continues to be seen in the 10,800-11,000 calls and 10,200-10,500 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 2.63% and reached 13.57. The 50-share Nifty was down by 39.95 points or 0.37% to settle at 10,696.20.

Nifty June 2018 futures closed at 10683.90 on Friday, at a discount of 12.30 points over spot closing of 10696.20, while Nifty June 2018 futures ended at 10698.00, at a premium of 1.80 points over spot closing. Nifty July futures saw an addition of 0.50 million (mn) units, taking the total outstanding open interest (OI) to 19.50 mn units. The near month derivatives contract will expire on June 28, 2018.

From the most active contracts, HDFC Bank June 2018 futures traded at a discount of 1.95 points at 2105.00 compared with spot closing of 2106.95. The numbers of contracts traded were 28,526.

ICICI Bank June 2018 futures traded at flat at 288.80 compared with spot closing of 288.80. The numbers of contracts traded were 27,587.

Maruti Suzuki June 2018 futures traded at a premium of 23.20 points at 8821.20 compared with spot closing of 8798.00. The numbers of contracts traded were 27,214.

Tata Motors June 2018 futures traded at a premium of 1.05 points at 288.55 compared with spot closing of 287.50. The numbers of contracts traded were 22,165.

Vedanta June 2018 futures traded at a premium of 1.40 points at 249.40 compared with spot closing of 248.00. The numbers of contracts traded were 21,165.

Among Nifty calls, 10800 SP from the June month expiry was the most active call with an addition of 0.55 million open interests. Among Nifty puts, 10600 SP from the June month expiry was the most active put with an addition of 0.03 million open interests. The maximum OI outstanding for Calls was at 11000 SP (3.72mn) and that for Puts was at 10200 SP (3.18mn). The respective Support and Resistance levels of Nifty are: Resistance 10,746.80 ---- Pivot Point 10,714.15 --- Support --- 10663.55.

The Nifty Put Call Ratio (PCR) finally stood at 1.05 for June month contract. The top five scrips with highest PCR on OI were Max Financial Services (6.00), Ajanta Pharma (3.19), Repco Home Finance (3.00), Dish TV (2.29) and Ramco Cements (2.00).

Among most active underlying, HDFC Bank witnessed an addition of 0.02 million units of Open Interest in the June month futures contract, followed by Maruti Suzuki witnessing an addition of 0.01 million units of Open Interest in the June month contract, Reliance Industries witnessed an addition of 1.65 million units of Open Interest in the June month contract, ICICI Bank witnessed an addition of 0.64 million units of Open Interest in the June month contract and State Bank of India witnessed an addition of 0.37 million units of Open Interest in the June month future contract.