Late hour buying takes Nifty above 11,200 mark

Domestic index S&P CNX Nifty on Thursday shot up in the last hour of trade and finished the day’s trade with a gain of around a percent. The barometer made a cautious start as investor remain concerned with a report that India’s merchandise exports fell to a four-month low of 0.64% in April, 2019 as compared to same period of last year, as shipments of engineering goods, gems and jewellery, leather and other products declined, widening the trade deficit to a five-month high. Some cautiousness also came with India Meteorological Department (IMD) also said the southwest monsoon arrival over the State is likely to be slightly delayed. The agriculture in India is heavily dependent on the monsoon rains due to lackluster irrigation facilities. Selling in software and power counters too dampened sentiments.

However, buying which emerged in final hours of trade helped market to end near intraday high, as sentiments turned buoyed with a report that Confederation of Indian Industry (CII) would focus on enhancing industry's competency and employment generation under its seven point charter for the southern region this year. It would focus on high growth sectors like manufacturing, automobiles, information and communication technology as part of its move to enhance industry's core competitiveness. Some support also came in with a report that the India's services exports rose by 6.6 per cent to $17.94 billion in March. Services imports in March too grew by 10.55 per cent to $11.37 billion. The trade balance in services for the month under review is estimated at $6.58 billion.

All sectoral indices ended in green on NSE except Pharma. The top gainers from the F&O segment were Tata Global Beverages, Zee Entertainment Enterprises and Tata Chemicals. On the other hand, the top losers were InterGlobe Aviation, Vodafone Idea and Piramal Enterprises. In the index option segment, maximum OI continues to be seen in the 11,900-12,100 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 decreased by 1.00% and reached 28.37. The 50-share Nifty was up by 100.10 points or 0.90% to settle at 11,257.10.

Nifty May 2019 futures closed at 11285.25 on Thursday, at a premium of 28.15 points over spot closing of 11257.10, while Nifty June 2019 futures ended at 11317.10, at a premium of 60.00 points over spot closing. Nifty May futures saw a contraction of 0.24 million (mn) units, taking the total outstanding open interest (OI) to 15.45 mn units. The near month derivatives contract will expire on May 30, 2019.

From the most active contracts, Yes Bank May 2019 futures traded at a discount of 0.50 points at 137.70 compared with spot closing of 138.20. The numbers of contracts traded were 41,410.

Bajaj Finance May 2019 futures traded at a discount of 4.15 points at 3119.85 compared with spot closing of 3124.00. The numbers of contracts traded were 34,537.

Sun Pharmaceutical Industries May 2019 futures traded at a premium of 0.35 points at 412.50 compared with spot closing of 412.15. The numbers of contracts traded were 31,660.

Reliance Industries May 2019 futures traded flat with spot closing of 1269.20. The numbers of contracts traded were 24,274.

Zee Entertainment Enterprises May 2019 futures traded at a discount of 4.30 points at 347.40 compared with spot closing of 351.70. The numbers of contracts traded were 19,305.  

Among Nifty calls, 11,200 SP from the May month expiry was the most active call with an addition of 0.26 million open interests. Among Nifty puts, 11,200 from the May month expiry was the most active put with an addition of 0.13 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.04mn) and that for Puts was at 11,000 SP (2.85 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,311.32 ---- Pivot Point 11,227.33 --- Support --- 11,173.12.

The Nifty Put Call Ratio (PCR) finally stood at 0.98 for May month contract. The top five scrips with highest PCR on OI were Mindtree (1.67), Bosch (1.46), Petronet LNG (1.39), NIIT Technologies (1.27) and Page India (1.25).

Among most active underlying, Bajaj Finance witnessed an addition of 0.03 million units of Open Interest in the May month futures contract, followed by Reliance Industries witnessing an addition of 0.69 million units of Open Interest in the May month contract, State Bank of India witnessed a contraction of 1.47 million units of Open Interest in the May month contract, InterGlobe Aviation witnessed an addition of 0.14 million units of Open Interest in the May month contract and Sun Pharmaceutical Industries witnessed a contraction of 1.49 million units of Open Interest in the May month future contract.