Nifty logs notable gains; ends just shy of 10,950 mark

Logging notable gains of 0.87%, Indian equity benchmark Nifty ended Tuesday’s session on firm note, tracking positive trend in global markets. After an optimistic start, the index remained bullish throughout the session, amid rating agency Crisil’s latest report stating that India Inc will deliver the highest quarterly revenue growth in three years at 12.8% in the April-June period but high oil prices will narrow profit margins by 0.20%. Traders’ sentiments got boost with the Reserve Bank of India’s (RBI) latest report revealing that private corporate business sector records robust sales growth in fourth quarter of 2017-18, with the companies posting sales of Rs 9.25 trillion as compared Rs 8.41 trillion in the last quarter of 2016-17. A performance analysis report is based on the abridged financial results of 2,723 listed non-government non-financial (NGNF) companies for the Q4 FY18.

Further, in last hours of trade, Nifty added gains to end the day near its intraday high point. Optimism remained among the market participants with a private report stating that India and South Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade by updating their existing free-trade agreement, called the comprehensive economic partnership agreement (CEPA). Investors also took support from BSE Managing Director and CEO Ashishkumar Chauhan’s statement that there was no need to ‘panic’ over risk management firm Kroll’s observations about Indian economy as the country was a thought leader in corporate governance worldwide.

All the sectoral indices ended in green except Pharma on the NSE. The top gainers from the F&O segment were IDBI Bank, Granules India and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Hexaware Technologies, Page Industries and Hindustan Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 10,800-11,100 calls and 10,400-10,800 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 0.04% and reached 12.39. The 50-share Nifty was up by 94.35 points or 0.87% to settle at 10,947.25.

Nifty July 2018 futures closed at 10947.85 on Tuesday, at a premium of 0.60 points over spot closing of 10947.25, while Nifty August 2018 futures ended at 10967.25, at a premium of 20.00 points over spot closing. Nifty July futures saw an addition of 0.93 million (mn) units, taking the total outstanding open interest (OI) to 23.59 mn units. The near month derivatives contract will expire on July 26, 2018.

From the most active contracts, Reliance Industries July 2018 futures traded at a discount of 1.40 points at 1026.10 compared with spot closing of 1027.50. The numbers of contracts traded were 26,569.

Tata Steel Services July 2018 futures traded at a premium of 2.05 points at 571.05 compared with spot closing of 569.00. The numbers of contracts traded were 23,209.

IndusInd Bank July 2018 futures traded at a discount of 1.75 points at 1934.25 compared with spot closing of 1936.00. The numbers of contracts traded were 22,016.

Yes Bank July 2018 futures traded at a discount of 1.50 points at 371.40 compared with spot closing of 372.90. The numbers of contracts traded were 19,221.

Shriram Transport Finance Company July 2018 futures traded at a discount of 0.45 points at 1201.55 compared with spot closing of 1202.00. The numbers of contracts traded were 14,898.

Among Nifty calls, 11000 SP from the July month expiry was the most active call a contraction of 0.05 million open interests. Among Nifty puts, 10800 SP from the July month expiry was the most active put with an addition of 1.30 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.68 mn) and that for Puts was at 10,600 SP (5.19 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,977.22 ---- Pivot Point 10,926.93 --- Support --- 10,896.97.

The Nifty Put Call Ratio (PCR) finally stood at 1.43 for July month contract. The top five scrips with highest PCR on OI were Maruti Suzuki (1.48), Adani Power (1.16), Just Dial (1.08), Yes Bank (1.06) and GAIL (1.07).

Among most active underlying, Reliance Industries witnessed a contraction of 2.26 million units of Open Interest in the July month futures contract, followed by Tata Consultancy Services witnessing an addition of 0.73 million units of Open Interest in the July month contract, IndusInd Bank witnessed an addition of 0.51 million units of Open Interest in the July month contract, Maruti Suzuki India witnessed a contraction of 0.02 million units of Open Interest in the July month contract and Tata Steel witnessed an addition of 0.21 million units of Open Interest in the July month future contract.