Nifty settles at record high; Surpasses 11,100 mark

The local equity benchmark Nifty ended at record high on Tuesday, surpassing a crucial psychological level of 11,100 mark. After a positive start, the index remained in green terrain throughout the session with taking support from Union Finance Minister Piyush Goyal’s statement that rising tax collections will further help reduce the tariffs, couple of days after goods and services tax (GST) rates were cut on 100 items. Optimism also remained on the street with a report that the overall exports from India to BRICS saw an upswing of 7.5% in Q1 2018 Y-o-Y in terms of total volumes, while the country’s imports from BRICS nations is reduced by 3.5%. Domestic sentiments got boost as the commerce ministry is working on an export promotion strategy to boost shipments of chemicals, plastics and allied products sector to push the growth of the country's overall exports. For the formulation of the strategy, the ministry has constituted a sub-group to deliberate upon the issues of the sector.

Further, in the middle of trading session, the Nifty trimmed most of its gains on account of SEBI’s report stating that the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) dropped to more than nine-year low of Rs 83,688 crore at June-end. However, the market soon made recovery to hit fresh record high, following firm global cues. Some support also came after the US Congress asked the Trump Administration to come up with a strategy that can reflect a measurable progress in its defence ties with India.

All the sectoral indices ended in green on the NSE except Bank, IT, PVT Bank. The top gainers from the F&O segment were Hindustan Construction Company, ACC and Suzlon Energy. On the other hand, the top losers were Granules India, PC Jeweller and Hexaware Technologies. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,700-11,000 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 4.53% and reached 12.41. The 50-share Nifty was up by 49.55 points or 0.45% to settle at 11,134.30.

Nifty July 2018 futures closed at 11142.00 on Tuesday’s, at a premium of 7.70 points over spot closing of 11134.30, while Nifty August 2018 futures ended at 11167.40, at a premium of 33.10 points over spot closing. Nifty July futures saw a contraction of 3.81 million (mn) units, taking the total outstanding open interest (OI)

to 18.67 mn units. The near month derivatives contract will expire on July 26, 2018.

From the most active contracts, ACC July 2018 futures traded at a discount of 14.65 points at 1469.60 compared with spot closing of 1484.25. The numbers of contracts traded were 28,634.

Tata Steel July 2018 futures traded at a discount of 1.35 points at 527.60 compared with spot closing of 528.95. The numbers of contracts traded were 25,244.

Vedanta July 2018 futures traded at a premium of 0.35 points at 216.00 compared with spot closing of 215.65. The numbers of contracts traded were 23,708.

Bajaj Auto July 2018 futures traded at a premium of 4.45 points at 2652.45 compared with spot closing of 2648.00. The numbers of contracts traded were 21,838.

Idea Cellular July 2018 futures traded at a premium of 0.35 points at 56.55 compared with spot closing of 56.20. The numbers of contracts traded were 21,022.

Among Nifty calls, 11100 SP from the July month expiry was the most active call with a contraction of 0.61 million open interests. Among Nifty puts, 11000 SP from the July month expiry was the most active put with an addition of 0.01 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (3.22 mn) and that for Puts was at 11,000 SP (5.53 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,154.30 ---- Pivot Point 11,123.40 --- Support --- 11103.40.

The Nifty Put Call Ratio (PCR) finally stood at 1.86 for July month contract. The top five scrips with highest PCR on OI were Repco Home Finance (2.69), Adani Power (2.40), Just Dail (1.37) LIC Housing Finance (1.35) and Adani Enterprises (1.32).

Among most active underlying, Reliance Industries witnessed a contraction of 7.50 million units of Open Interest in the July month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.27 million units of Open Interest in the July month contract, Bajaj Auto witnessed a contraction of 0.67 million units of Open Interest in the July month contract, HDFC Bank witnessed a contraction of 4.09 million units of Open Interest in the July month contract and Bajaj Finance witnessed a contraction of 1.10 million units of Open Interest in the July month future contract.