Nifty ends near day’s high ahead of IIP, inflation data

The local equity index Nifty ended near intraday high point on Tuesday, with the gains of more than half a percent ahead of IIP and inflation data. The index started on a positive note and further maintained its rally throughout the day, as street took encouragement with a report stating that the Reserve Bank of India has came out with draft guidelines on loan system for delivery of bank credit, in order to improve discipline among larger borrowers with working capital facility from the banking system. The market participants also took support with finance ministry official’s statement that the government is likely to launch a Rs 500-crore credit enhancement fund next month to facilitate infrastructure investments by insurance and pension funds. Sentiments also remained up-beat with a private report stating that China and Russia have backed India’s move to revive talks at the World Trade Organization (WTO) to strengthen global norms to protect traditional knowledge from bio piracy and reckless patenting by corporates. Sentiments on the street improved, as the Union government has formed a new committee under the chairmanship of former Chief Statistician Prof. T.C.A Anant to bring more transparency in employment related data releases. Meanwhile, the US-North Korea summit in Singapore ended on a positive note.

All the sectoral indices ended in green on the NSE, except Metal. The top gainers from the F&O segment were Lupin, Granules India and Dr Reddy's Laboratories. On the other hand, the top losers were Shree Cement, Dalmia Bharat and Jet Airways. In the index option segment, maximum OI continues to be seen in the 10,900-11,000 calls and 10,600-10,700 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 3.41% and reached 12.73. The 50-share Nifty was up by 55.90 points or 0.52% to settle at 10,842.85.

Nifty June 2018 futures closed at 10839.05 on Tuesday, at a discount of 3.80 points over spot closing of 10842.85, while Nifty July 2018 futures ended at 10850.85, at a premium of 8.00 points over spot closing.  Nifty June futures saw an addition of 0.49 million (mn) units, taking the total outstanding open interest (OI) to 23.73 mn units. The near month derivatives contract will expire on June 28, 2018.

From the most active contracts, State Bank of India June 2018 futures traded at a discount of 1.35 points at 282.65 compared with spot closing of 284.00. The numbers of contracts traded were 25,810.

Tata Steel June 2018 futures traded at a premium of 2.75 points at 582.35 compared with spot closing of 579.60. The numbers of contracts traded were 24,949.

Lupin June 2018 futures traded at a discount of 5.65 points at 855.50 compared with spot closing of 861.15. The numbers of contracts traded were 23,028.

Strides Shasun June 2018 futures traded at a discount of 2.95 points at 365.35 compared with spot closing of 368.30. The numbers of contracts traded were 18,147.

Reliance Industries June 2018 futures traded at a discount of 7.25 points at 992.15 compared with spot closing of 999.40. The numbers of contracts traded were 16,126.

Among Nifty calls, 10900 SP from the June month expiry was the most active call with an addition of 0.10 million open interests. Among Nifty puts, 10700 SP from the June month expiry was the most active put with an addition of 0.62 million open interests. The maximum OI outstanding for Calls was at 11000 SP (3.83mn) and that for Puts was at 10600 SP (5.06mn). The respective Support and Resistance levels of Nifty are: Resistance 10,869.80 ---- Pivot Point 10,829.60 --- Support --- 10802.65.

The Nifty Put Call Ratio (PCR) finally stood at 1.29 for June month contract. The top five scrips with highest PCR on OI were Dish TV (2.25), Ramco Cements (2.25), Cummins India (1.73), Manappuram Finance (1.38) and Just Dial (1.35).

Among most active underlying, State Bank of India witnessed an addition of 1.85 million units of Open Interest in the June month futures contract, followed by Reliance Industries witnessing an addition of 1.32 million units of Open Interest in the June month contract, Steel Authority of India witnessed a contraction of 0.95 million units of Open Interest in the June month contract, Tata Steel witnessed an addition of 0.07 million units of Open Interest in the June month contract and Tata Consultancy Services witnessed an addition of 1.40 million units of Open Interest in the June month future contract.