Nifty closes at record high; above 12,050 mark

Domestic index S&P CNX Nifty gave powerful performance by surging over a percent on Monday, surpassing its psychological level of 12,050. Local sentiments was lifted by fall in crude oil prices and hope of rate cut by the RBI's Monetary Policy Committee (MPC). Nifty made a positive start, as traders remained encouraged with report that tax mop-up crossed Rs 1 lakh crore for the third straight month. The Goods and Services Tax (GST) collection in May came in at Rs 1,00,289 crore, clocking a growth of about 7% compared with the mop-up of Rs 94,016 crore in the corresponding month last fiscal. Sentiment on the street improved on a report that overseas investors pumped in a net amount of Rs 9,031 crore into the Indian capital markets in May on expectations of more business-friendly measures following the BJP's landslide victory in the general elections.

Market continued their rally mood to reach at fresh intraday high points in last leg of trade, as sentiment got boost with a monthly survey showing that the country's manufacturing sector performance gained momentum in May as companies lifted output amid strengthening demand conditions, leading to further job creation in the sector. The Nikkei India Manufacturing Purchasing Managers' Index, improved to 52.7 in May from 51.8 in April, pointing to the strongest improvement in the health of the sector in three months. The domestic sentiments also remained upbeat as the government decided to extend PM-KISAN scheme to all 14.5 crore farmers, costing Rs 87,000 crore a year, and also announced over Rs 10,000 crore pension scheme for five crore farmers, thereby fulfilling the BJP's poll promise.

All sectoral indices ended in green on NSE except Media. The top gainers from the F&O segment were Apollo Hospitals Enterprise, Just Dial and Page Industries. On the other hand, the top losers were Reliance Infrastructure, Jet Airways and PC Jeweller. In the index option segment, maximum OI continues to be seen in the 12,400-12,600 calls and 11,200-11,700 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.62% and reached 15.96. The 50-share Nifty was up by 165.75 points or 1.39% to settle at 12,088.55.

Nifty June 2019 futures closed at 12104.45 on Monday, at a premium of 15.90 points over spot closing of 12088.55, while Nifty July 2019 futures ended at 12140.80, at a premium of 52.25 points over spot closing. Nifty June futures saw an addition of 1.60 million (mn) units, taking the total outstanding open interest (OI) to 19.79 mn units. The near month derivatives contract will expire on June 27, 2019.

From the most active contracts, Reliance Industries June 2019 futures traded at a discount of 4.30 points at 1359.70 compared with spot closing of 1364.00. The numbers of contracts traded were 31,136.

Maruti Suzuki India June 2019 futures traded at a premium of 24.95 points at 7060.00 compared with spot closing of 7035.05. The numbers of contracts traded were 21,503.

Yes Bank June 2019 futures traded at a premium of 0.40 points at 149.90 compared with spot closing of 149.50. The numbers of contracts traded were 19,329.

ICICI Bank June 2019 futures traded at a premium of 2.10 points at 424.95 compared with spot closing of 422.85. The numbers of contracts traded were 16,677.

IndusInd Bank June 2019 futures traded at a premium of 5.80 points at 1663.80 compared with spot closing of 1658.00. The numbers of contracts traded were 16,244.

Among Nifty calls, 12,000 SP from the June month expiry was the most active call with a contraction of 0.07 million open interests. Among Nifty puts, 11,900 from the June month expiry was the most active put with an addition of 0.21 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (1.80 mn) and that for Puts was at 11,500 SP (2.61 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,154.37 -- Pivot Point 12,037.23 -- Support -- 11,971.42.

The Nifty Put Call Ratio (PCR) finally stood at 1.48 for June month contract. The top five scrips with highest PCR on OI were TCS (1.73), Birlasoft (1.60), Infosys (1.38), Tata Motors - DVR (1.28) and Colgate-Palmolive (1.21).

Among most active underlying, Reliance Industries witnessed an addition of 0.21 million units of Open Interest in the June month futures contract, followed by State Bank of India witnessing an addition of 1.34 million units of Open Interest in the June month contract, Maruti Suzuki India witnessed an addition of 0.06 million units of Open Interest in the June month contract, Tata Consultancy Services witnessed an addition of 0.65 million units of Open Interest in the June month contract and ICICI Bank witnessed an addition of 1.66 million units of Open Interest in the June month future contract.