Nifty ends in green for second consecutive day

After getting onto a muted yet positive start, domestic index S&P CNX Nifty managed to pocket over half a percent gain, extending its rally for second consecutive session on Monday. Market made a cautious start, as some concern came with private report stating that the fourth quarter (January to March 2019) financial results released by 304 companies in the corporate sector show a sequential drop in revenue growth to 10.7 per cent from 20.1 per cent in the previous quarter (October to December 2018). Traders took a note of Niti Aayog vice-chairman Rajiv Kumar’s statement which stressed on the revamp and modernisation of the Indian statistical system so that real-time data is captured and used for policy analysis.

As the day progressed the index added to early gains and rallied throughout the session, as the Reserve Bank of India (RBI) said it will inject Rs 15,000 crore into the financial system in the month of June 2019. It will infuse liquidity through purchase of government bonds via the auction route. Local investors also cheered after international rating agency S&P Global Ratings said that the landslide victory for Prime Minister Narendra Modi-led BJP in the general election is likely to improve the flow of foreign capital for corporates in India. The markets took support from a report that Commerce and Industry Ministry proposed cutting down compliance time significantly to just one hour per month for start-ups as part of measures to ease regulatory requirements for budding entrepreneurs. The proposal is a part of 'Start-up India Vision 2024', prepared by the Department for Promotion of Industry and Internal Trade (DPIIT) for the new government to promote the growth of budding entrepreneurs.

All sectoral indices ended in green on NSE except Pharma, Media and IT. The top gainers from the F&O segment were Engineers India, V-Guard Industries and Tata Steel. On the other hand, the top losers were Page Industries, Divi's Laboratories and PC Jeweller. In the index option segment, maximum OI continues to be seen in the 12,400-12,600 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 1.69% and reached 16.19. The 50-share Nifty was up by 80.65 points or 0.68% to settle at 11,924.75.

Nifty May 2019 futures closed at 11918.50 on Monday, at a discount of 6.25 points over spot closing of 11924.75, while Nifty June 2019 futures ended at 11968.55, at a premium of 43.80 points over spot closing. Nifty May futures saw a contraction of 1.85 million (mn) units, taking the total outstanding open interest (OI) to 15.50 mn units. The near month derivatives contract will expire on May 30, 2019.

From the most active contracts, Reliance Industries May 2019 futures traded at a discount of 1.10 points at 1312.10 compared with spot closing of 1313.20. The numbers of contracts traded were 40,661.

ICICI Bank May 2019 futures traded at a discount of 1.10 points at 433.95 compared with spot closing of 435.05. The numbers of contracts traded were 40,002.

Yes Bank May 2019 futures traded at flat with spot closing of 146.75. The numbers of contracts traded were 39,653.

HDFC Bank May 2019 futures traded at a premium of 3.80 points at 2408.65 compared with spot closing of 2404.85. The numbers of contracts traded were 27,582.

State Bank of India May 2019 futures traded at a premium of 0.75 points at 361.05 compared with spot closing of 360.30. The numbers of contracts traded were 27,110.

Among Nifty calls, 12,000 SP from the May month expiry was the most active call with an addition of 0.02 million open interests. Among Nifty puts, 11,800 from the May month expiry was the most active put with an addition of 0.86 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (4.40 mn) and that for Puts was at 11,000 SP (3.86 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,983.80 ---- Pivot Point 11,898.10 --- Support --- 11,839.05.

The Nifty Put Call Ratio (PCR) finally stood at 0.92 for May month contract. The top five scrips with highest PCR on OI were Shree Cement (4.00), Titan Company (1.46), Bosch (1.44), Mindtree (1.36) and Cummins India (1.30).

Among most active underlying, Reliance Industries witnessed a contraction of 5.33 million units of Open Interest in the May month futures contract, followed by State Bank of India witnessing a contraction of 8.39 million units of Open Interest in the May month contract, ICICI Bank witnessed a contraction of 16.09 million units of Open Interest in the May month contract, Axis Bank witnessed a contraction of 5.89 million units of Open Interest in the May month contract and Tata Steel witnessed a contraction of 6.23 million units of Open Interest in the May month future contract.