Nifty ends on firm note; settles above 11,950 mark

Rising for a third straight session, key equity benchmark -- Nifty -- ended Tuesday’s session on a firm note ahead of key macro-economic data due to be released later this week. The broader 50-share NSE Nifty closed above 11,950 mark. Index made a slight positive start, as some comfort came with report that SEBI proposed an informant mechanism to blow the whistle on insider trading cases, wherein genuine whistleblowers could get monetary reward of Rs 1 crore as well as amnesty from regulatory action. The market also took support from the latest data from industry body the Association of Mutual Funds of India (AMFI) showing that average Assets Under Management (AUM) of mutual funds rose to Rs 25.43 trillion in May from Rs 25.27 trillion in the previous month on the back of increased inflows into equity-linked schemes.

As the day progressed, the gauge added gains, taking encouragement with Crisil’s latest report which stated that the system-wide non-performing assets (NPAs) stock declined massively to 9.3 per cent in last fiscal year (FY19), after tripling to 11.5 per cent in the four fiscals till March 2018. The decline was much faster than the Reserve Bank of India's (RBI) estimate. Some optimisms also came with the Micro, Small and Medium Enterprise (MSME) ministry’s additional secretary Ram Mohan Mishra’s statement that ministry is working on developing enterprise facilitation centres at block level across the country to make MSMEs more competitive and help them integrate with big enterprises. But, Index cut some of its gains in the last leg of the session as market participants got cautious with Arvind Subramanian, Narendra Modi government's former chief economic adviser’s statement that India's economic growth rate has been overestimated by around 2.5 percentage points between 2011-12 and 2016-17 due to a change in methodology for calculating GDP.

All sectoral indices ended in green on NSE except FMCG and Pharma. The top gainers from the F&O segment were Dish TV India, PC Jeweller and Jain Irrigation Systems. On the other hand, the top losers were Jet Airways, Indiabulls Housing Finance and Ujjivan Financial Services. 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 3.24% and reached 14.49. The 50-share Nifty was up by 42.90 points or 0.36% to settle at 11,965.60.

Nifty June 2019 futures closed at 11976.95 on Tuesday, at a premium of 11.35 points over spot closing of 11965.60, while Nifty July 2019 futures ended at 12011.95, at a premium of 46.35 points over spot closing. Nifty June futures saw a contraction of 0.67 million (mn) units, taking the total outstanding open interest (OI) to 19.15 mn units. The near month derivatives contract will expire on June 27, 2019.

From the most active contracts, Indiabulls Housing Finance June 2019 futures traded at a premium of 3.55 points at 677.70 compared with spot closing of 674.15. The numbers of contracts traded were 73,333.

Yes Bank June 2019 futures traded at a discount of 0.15 points at 139.60 compared with spot closing of 139.75. The numbers of contracts traded were 42,816.

Reliance Infrastructure June 2019 futures traded at a discount of 1.90 points at 63.80 compared with spot closing of 65.70. The numbers of contracts traded were 30,368.

Reliance Industries June 2019 futures traded at a premium of 4.05 points at 1333.60 compared with spot closing of 1329.55. The numbers of contracts traded were 20,872.

ICICI Bank June 2019 futures traded at a discount of 0.15 points at 421.85 compared with spot closing of 422.00. The numbers of contracts traded were 17,523.  

Among Nifty calls, 12,000 SP from the June month expiry was the most active call with a contraction of 0.10 million open interests. Among Nifty puts, 11,900 from the June month expiry was the most active put with an addition of 0.29 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (2.53 mn) and that for Puts was at 11,500 SP (2.82 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,009.18 ---- Pivot Point 11,956.77 --- Support --- 11,913.18.

The Nifty Put Call Ratio (PCR) finally stood at 1.34 for June month contract. The top five scrips with highest PCR on OI were MRPL (2.00), TCS (1.75), Bosch (1.67), Colgate-Palmolive (1.65) and Birlasoft (1.35).

Among most active underlying, Indiabulls Housing Finance witnessed an addition of 1.24 million units of Open Interest in the June month futures contract, followed by Reliance Industries witnessing an addition of 0.22 million units of Open Interest in the June month contract, State Bank of India witnessed a contraction of 2.03 million units of Open Interest in the June month contract, Yes Bank witnessed a contraction of 6.07 million units of Open Interest in the June month contract and ICICI Bank witnessed an addition of 0.66 million units of Open Interest in the June month future contract.