Snapping three days of rally, domestic benchmark S&P CNX Nifty ended the Wednesday's trade in red terrain, as sentiments turned bearish on Wednesday weighed down by depreciation in the rupee. It was a strong start for Nifty indices, as traders remain concerned about the Department for Promotion of Industry and Internal Trade’s (DPIIT) latest data showing that foreign direct investment (FDI) in India declined for the first time in the last six years in 2018-19, falling by 1 per cent to $44.37 billion as compared to $44.85 billion in 2017-18. According to the data, FDI inflows in telecommunication, construction development, pharmaceuticals and power sectors declined significantly in 2018-19. Decline in foreign inflows could put pressure on the country's balance of payments and may also impact the value of the rupee.
Market further extended losses in the afternoon deals, as sentiment on the street weakened ahead of GDP number that will be released later this week. The market participants failed to take support with a global study showing that India has moved up one place to rank as the world’s 43rd most competitive economy on the back of its robust economic growth, a large labour force and its huge market size, while Singapore has toppled the US to grab the top position. Traders shrugged off a report that India can attract FDI to a ratio of 1.5 percent to 2 percent of its GDP by further improving on ease of doing business and building infrastructure. It also said that the country is in favourable position to attract foreign firms planning to relocate their manufacturing bases due to trade tension between the US and China.
All sectoral indices ended in red on NSE except IT. The top gainers from the F&O segment were Power Finance Corporation, Max Financial Services and Bharti Infratel. On the other hand, the top losers were PC Jeweller, Punjab National Bank and JSW Steel. 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 increased by 3.05% and reached 16.40. The 50-share Nifty was down by 67.65 points or 0.57% to settle at 11,861.10.
Nifty May 2019 futures closed at 11862.25 on Wednesday, at a premium of 1.15 points over spot closing of 11861.10, while Nifty June 2019 futures ended at 11895.85, at a premium of 34.75 points over spot closing. Nifty May futures saw a contraction of 1.71 million (mn) units, taking the total outstanding open interest (OI) to 12.93 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 1.55 points at 1314.05 compared with spot closing of 1315.60. The numbers of contracts traded were 47,344.
Sun Pharmaceutical Industries May 2019 futures traded at a premium of 0.40 points at 422.45 compared with spot closing of 422.05. The numbers of contracts traded were 42,743.
Yes Bank May 2019 futures traded at a premium of 0.05 points at 151.75 compared with spot closing of 151.70. The numbers of contracts traded were 38,673.
ICICI Bank May 2019 futures traded at a premium of 0.50 points at 424.00 compared with spot closing of 423.50. The numbers of contracts traded were 38,027.
HDFC Bank May 2019 futures traded at a premium of 0.85 points at 2418.85 compared with spot closing of 2418.00. The numbers of contracts traded were 25,788.
Among Nifty calls, 12,000 SP from the May month expiry was the most active call with an addition of 1.30 million open interests. Among Nifty puts, 11,900 from the May month expiry was the most active put with a contraction of 0.68 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (5.34 mn) and that for Puts was at 11,000 SP (3.38 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,916.40 ---- Pivot Point 11,876.60 --- Support --- 11,821.30.
The Nifty Put Call Ratio (PCR) finally stood at 0.78 for May month contract. The top five scrips with highest PCR on OI were Shree Cement (4.00), Muthoot Finance (1.56), Siemens (1.43), Titan Company (1.39) and Bosch (1.39).
Among most active underlying, Reliance Industries witnessed a contraction of 11.71 million units of Open Interest in the May month futures contract, followed by State Bank of India witnessing a contraction of 19.43 million units of Open Interest in the May month contract, ICICI Bank witnessed a contraction of 27.52 million units of Open Interest in the May month contract, Sun Pharmaceutical Industries witnessed a contraction of 12.22 million units of Open Interest in the May month contract and Infosys witnessed a contraction of 16.45 million units of Open Interest in the May month future contract.
