The CNX Nifty turned bearish to end Friday’s trading session in red terrain, amid heavy losses in Auto and Pharma stocks. It was a negative start to the market, as traders remained concerned with the Reserve Bank of India’s (RBI) report that both bank credit and deposits slowed to 9.92 percent and 12.31 percent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7. Adding pessimism among investors, the Reserve Bank of India Governor Shaktikanta Das said that the Indian economy has been clearly losing traction and needs a decisive monetary policy to promote growth. He also favoured shifting the stance of monetary policy from neutral to accommodative to send a clear signal, indicating that more measures could be taken in the near future to boost growth.
Market further extended losses in late afternoon deals, as sentiment on the street weakened with a report indicating that the merger and acquisition activity recorded an 87 percent fall in terms of value and a 27 per cent drop in volume last month, due to weakness in the rupee, spike in crude oil prices and indecisiveness among investors until results of the general elections. Traders shrugged off a report that the United States is not considering capping the number of annual H-1B work visas for countries that force foreign companies to store local data locally. Meanwhile, the RBI said foreign exchange trading platform (FX-Retail) for retail participants is ready for rollout by the Clearing Corporation of India (CCIL) on August 05.
All sectoral indices ended in red on NSE except PSU Bank. The top gainers from the F&O segment were Suzlon Energy, Hexaware Technologies and Kaveri Seed Company. On the other hand, the top losers were Ujjivan Financial Services, Kajaria Ceramics and Oracle Financial Services Software. In the index option segment, maximum OI continues to be seen in the 11,900-12,100 calls and 11,600-11,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.36 and reached 14.61. The 50-share Nifty was down by 107.65 points or 0.91% to settle at 11,724.10.
Nifty June 2019 futures closed at 11753.45 on Friday, at a premium of 29.35 points over spot closing of 11724.10, while Nifty July 2019 futures ended at 11788.40, at a premium of 64.30 points over spot closing. Nifty June futures saw a contraction of 0.55 million (mn) units, taking the total outstanding open interest (OI) to 16.85 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 2.90 points at 612.90 compared with spot closing of 610.00. The numbers of contracts traded were 86,837.
Yes Bank June 2019 futures traded at a premium of 0.30 points at 109.70 compared with spot closing of 109.40. The numbers of contracts traded were 45,812.
UPL June 2019 futures traded at a premium of 3.55 points at 892.95 compared with spot closing of 889.40. The numbers of contracts traded were 27,903.
Maruti Suzuki India June 2019 futures traded at a discount of 3.95 points at 6421.05 compared with spot closing of 6425.00. The numbers of contracts traded were 24,365.
ICICI Bank June 2019 futures traded flat at 431.00 with spot closing of 431.00. The numbers of contracts traded were 24,220.
Among Nifty calls, 11,800 SP from the June month expiry was the most active call with an addition of 1.21 million open interests. Among Nifty puts, 11,700 from the June month expiry was the most active put with a contraction of 0.16 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (4.23 mn) and that for Puts was at 11,700 SP (3.42 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,799.67 -- Pivot Point 11,752.38 -- Support -- 11,676.82.
The Nifty Put Call Ratio (PCR) finally stood at 1.09 for June month contract. The top five scrips with highest PCR on OI were Bosch (1.64), Equitas Holdings (1.43), TCS (1.41), MRPL (1.38) and Colgate-Palmolive (India) (1.26).
Among most active underlying, State Bank of India witnessed a contraction of 3.78 million units of Open Interest in the June month futures contract, followed by Indiabulls Housing Finance witnessing a contraction of 0.96 million units of Open Interest in the June month contract, Maruti Suzuki India witnessed a contraction of 0.05 million units of Open Interest in the June month contract, Reliance Industries witnessed a contraction of 0.97 million units of Open Interest in the June month contract and Housing Development Finance Corporation witnessed a contraction of 0.92 million units of Open Interest in the June month future contract.
