After oscillating in green and red zone for most part of the day, bulls retaliate in late trade snapping the erratic day of trade in a great fashion garnering gains of over half a percent. Indian benchmark kicked-off the session on cautious note, but soon gained traction as traders took some encouragement with the World Bank’s report stating that India's GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption. Data for the first three quarters suggest that growth has been broad-based. Industrial growth accelerated to 7.9 per cent, making up for a deceleration in services.
Market erased all of its early gains to enter into negative territory in the noon deals, with a report that Indian economy may be moving towards a slowdown as the country has off-late witnessed a drop in several key economic indicators. After a fall in auto sales, a shortfall in collection of direct taxes among others, now household savings in the country too have declined. Traders took a note of private report that India's retail inflation is expected to have accelerated in March on slightly higher food prices but remain under the Reserve Bank of India's medium-term target of 4 percent. But, buying in last leg of trade helped markets to regained its positive terrain and settle near intraday high level as market participants turned optimistic amid reports World Bank’s report that India retained its position as the world's top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018. India was followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion).
All sectoral indices ended in green on NSE except Media. The top gainers from the F&O segment were Ashok Leyland, Canara Bank and Cummins India. On the other hand, the top losers were Reliance Power, Indiabulls Housing Finance and Asian Paints. In the index option segment, maximum OI continues to be seen in the 11,800-12,200 calls and 10,800-11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.63% and reached 20.28. The 50-share Nifty was up by 67.45 points 0.58% to settle at 11,671.95.
Nifty April 2019 futures closed at 11742.30 on Tuesday, at a premium of 70.35 points over spot closing of 11671.95, while Nifty May 2019 futures ended at 11806.35, at a premium of 134.40 points over spot closing. Nifty April futures saw an addition of 0.18 million (mn) units, taking the total outstanding open interest (OI) to 15.85 mn units. The near month derivatives contract will expire on April 25, 2019.
From the most active contracts, Reliance Industries April 2019 futures traded at a premium of 7.30 points at 1345.30 compared with spot closing of 1338.00. The numbers of contracts traded were 31,440.
Indiabulls Housing Finance April 2019 futures traded at a premium of 6.25 points at 838.20 compared with spot closing of 831.95. The numbers of contracts traded were 30,149.
Yes Bank April 2019 futures traded at a premium of 0.85 points at 272.60 compared with spot closing of 271.75. The numbers of contracts traded were 27,938.
State Bank of India April 2019 futures traded at a premium of 2.25 points at 316.85 compared with spot closing of 314.60. The numbers of contracts traded were 24,667.
Tata Motors April 2019 futures traded at a premium of 0.75 points at 207.75 compared with spot closing of 207.00. The numbers of contracts traded were 20,398.
Among Nifty calls, 11,700 SP from the April month expiry was the most active call with a contraction of 0.06 million open interests. Among Nifty puts, 11,600 from the April month expiry was the most active put with an addition of 0.15 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (2.88mn) and that for Puts was at 11,000 SP (2.73mn). The respective Support and Resistance levels of Nifty are: Resistance 11,714.00 ---- Pivot Point 11,641.85 --- Support --- 11,599.80.
The Nifty Put Call Ratio (PCR) finally stood at 1.23 for April month contract. The top five scrips with highest PCR on OI were Shree Cement (3.00), Bosch (1.43), Adani Power (1.31), Mind Tree (1.00) and Icici Prudential Life Insurance (0.97).
Among most active underlying, Reliance Industries witnessed a contraction of 0.07 million units of Open Interest in the April month futures contract, followed by State Bank of India witnessing a contraction of 2.28 million units of Open Interest in the April month contract, ICICI Bank witnessed an addition of 0.10 million units of Open Interest in the April month contract, Yes Bank witnessed an addition of 0.19 million units of Open Interest in the April month contract and Indiabulls Housing Finance witnessed an addition of 0.29 million units of Open Interest in the April month future contract.
