Gaining for the second straight session, the local equity benchmark Nifty ended higher on Thursday, surpassing its crucial psychological level of 10,750, amid firm global cues. After a positive start, the index traded jubilantly for the most part of the session, aided by World Bank’s statement that India will retain the tag as the world’s fastest growing major emerging economy for the next three years. The bank’s June 2018 edition of the Global Economic Prospect report pegged India’s GDP growth at 7.3% in FY 2018-19 and 7.5% in FY 2019-20, reflecting robust private consumption and strengthening investment. The market participants remained upbeat with Moody’s Investors Service in its latest report expecting India to stick to the estimated fiscal deficit of 3.3% of GDP and even cut capital expenditure to offset any slippage from the budgeted target. Besides, some support also came with the RBI Governor Urjit Patel’s statement that there are no implications on non-performing assets (NPAs) of banks because of farm loan waivers provided by various states. Adding some comfort, Prime Minister Narendra Modi said his government's constant endeavour is to ensure affordable healthcare for every Indian. However, in the last leg of the trade, some gains got trimmed on account of profit booking in the recent gainers. Anxiety spread among traders with Chairman of the EEPC India, Ravi Sehgal’s statement that the decision of interest rate hike would increase input cost pressures only for the exporters. Some worries also came after the United Nations Conference on Trade and Development (UNCTAD) in its World Investment Report 2018, said that India’s foreign direct investment (FDI) inflows dropped to $40 billion in 2017 as compared to $44 billion in 2016. It also indicated that in South Asia, FDI inflows contracted by 4 percent to $52 billion, due to a fall in inflows to India.
All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment were Steel Authority of India, IDBI Bank and Just Dial. On the other hand, the top losers were Strides Shasun, Bosch and Voltas. In the index option segment, maximum OI continues to be seen in the 10,800-11,000 calls and 10,400-10,600 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 1.65% and reached 12.75. The 50-share Nifty was up by 83.70 points or 0.78% to settle at 10,768.35.
Nifty June 2018 futures closed at 10765.20 on Thursday, at a discount of 3.15 points over spot closing of 10768.35, while Nifty June 2018 futures ended at 10776.15, at a premium of 7.80 points over spot closing. Nifty July futures saw an addition of 1.19 million (mn) units, taking the total outstanding open interest (OI) to 21.83 mn units. The near month derivatives contract will expire on June 28, 2018.
From the most active contracts, Tata Motors June 2018 futures traded at a premium of 1.10 points at 305.85 compared with spot closing of 304.75. The numbers of contracts traded were 26,770.
Vedanta June 2018 futures traded at a discount of 0.20 points at 248.30 compared with spot closing of 248.50. The numbers of contracts traded were 23,585.
Tata Steel June 2018 futures traded at a premium of 1.05 points at 602.95 compared with spot closing of 601.90. The numbers of contracts traded were 22,731.
State Bank of India June 2018 futures traded at a premium of 0.65 points at 270.20 compared with spot closing of 269.55. The numbers of contracts traded were 17,738.
Canara Bank June 2018 futures traded at a discount of 0.15 points at 272.70 compared with spot closing of 272.85. The numbers of contracts traded were 15,887.
Among Nifty calls, 10800 SP from the June month expiry was the most active call with a contraction of 0.40 million open interests. Among Nifty puts, 10700 SP from the June month expiry was the most active put with an addition of 1.01 million open interests. The maximum OI outstanding for Calls was at 11000 SP (4.00mn) and that for Puts was at 10600 SP (4.55mn). The respective Support and Resistance levels of Nifty are: Resistance 10,816.70 ---- Pivot Point 10,769.65 --- Support --- 10721.30.
The Nifty Put Call Ratio (PCR) finally stood at 1.14 for June month contract. The top five scrips with highest PCR on OI were Dish TV (2.31), Ramco Cements (2.25), Cummins India (1.90), Manappuram Finance (1.51) and Grasim Industries (1.32).
Among most active underlying, Reliance Industries witnessed an addition of 0.43 million units of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 1.56 million units of Open Interest in the June month contract, Tata Motors witnessed a contraction of 0.80 million units of Open Interest in the June month contract, Tata Steel witnessed an addition of 1.93 million units of Open Interest in the June month contract and HDFC Bank witnessed an addition of 0.25 million units of Open Interest in the June month future contract.
