Nifty ends volatile day of trade in red

NSE gauge -- Nifty50 --  ended the volatile day of trade in red on Tuesday, with a cut of over half a percentage point weighed down by selling in frontline counters. Index made a cautious start, as traders remain concerned with a private report that the pre-monsoon rainfall in the country was the second lowest in 65 years. The three-month pre-monsoon season March, April and May ended with a rainfall deficiency of 25%. As per the report, all the four meteorological divisions - Northwest India, Central India, East-Northeast India and South Peninsula - recorded deficit rainfall of 30%, 18%, 14% and 47%, respectively. Investors maintained cautious approach with Reserve Bank of India’s (RBI) report which stated that Over 6,800 cases of bank fraud involving an unprecedented Rs 71,500 crore have been reported in 2018-19. In the last 11 fiscal years, a total of 53,334 cases of fraud were reported by banks involving a massive amount of Rs 2.05 lakh crore.

Market continued their weak run in the second half of the session, as some pessimism spread among the investors with Industry chamber, Confederation of Indian Industry’s (CII) statement that the US decision to withdraw export incentives from India has been taken in a haste and would hurt the domestic exporters. CII President Vikram Kirloskar expressed hope that both the US and India would discuss the matter and find an amicable solution to this issue. However, losses further remained capped with Finance Secretary Subhash Chandra Garg’s statement that declining global oil prices, stable rupee and falling interest rate are sure signs of high growth in coming months. India's growth rate has declined to 5-year low of 5.8% in the fourth quarter of the previous fiscal and 6.8% for the full financial year 2018-19.

All sectoral indices ended in red on NSE except Metal and PSU Bank. The top gainers from the F&O segment were IDBI Bank, Tata Global Beverages and TV18 Broadcast. On the other hand, the top losers were Just Dial, The India Cements and Indian Bank. 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 2.13% and reached 15.62. The 50-share Nifty was down by 66.90 points or 0.55% to settle at 12,021.65.

Nifty June 2019 futures closed at 12056.15 on Tuesday, at a premium of 34.50 points over spot closing of 12021.65, while Nifty July 2019 futures ended at 12089.65, at a premium of 68.00 points over spot closing. Nifty June futures saw a contraction of 0.52 million (mn) units, taking the total outstanding open interest (OI) to 19.27 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 premium of 2.30 points at 1355.30 compared with spot closing of 1353.00. The numbers of contracts traded were 27,258.

Yes Bank June 2019 futures traded at a premium of 0.35 points at 153.70 compared with spot closing of 153.35. The numbers of contracts traded were 27,002.

ICICI Bank June 2019 futures traded at a premium of 2.35 points at 421.35 compared with spot closing of 419.00. The numbers of contracts traded were 19,400.

State Bank of India June 2019 futures traded at a premium of 1.55 points at 354.35 compared with spot closing of 352.80. The numbers of contracts traded were 17,649.

Axis Bank June 2019 futures traded at a premium of 1.15 points at 825.05 compared with spot closing of 823.90. The numbers of contracts traded were 15,217.

Among Nifty calls, 12,100 SP from the June month expiry was the most active call with a contraction of 0.17 million open interests. Among Nifty puts, 12,000 from the June month expiry was the most active put with an addition of 0.03 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (1.95 mn) and that for Puts was at 11,500 SP (2.62 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,075.95 -- Pivot Point 12,040.90 -- Support -- 11,986.60.

The Nifty Put Call Ratio (PCR) finally stood at 1.45 for June month contract. The top five scrips with highest PCR on OI were Colgate-Palmolive (2.67), TCS (1.60), Birlasoft (1.53), Tata Motors - DVR (1.22) and Bosch (1.20).

Among most active underlying, Reliance Industries witnessed a contraction of 0.12 million units of Open Interest in the June month futures contract, followed by State Bank of India witnessing an addition of 2.45 million units of Open Interest in the June month contract, Axis Bank witnessed an addition of 1.62 million units of Open Interest in the June month contract, ICICI Bank witnessed an addition of 1.27 million units of Open Interest in the June month contract and Dr. Reddy's Laboratories witnessed an addition of 0.09 million units of Open Interest in the June month future contract.