Nifty ended marginally lower, below its crucial 11,700 mark, weighed down by selling in frontline counters amid concerns of delayed monsoon. The market began day on flat note and gather some gains in early deals as traders took some support with report that investments in the Indian capital market through participatory notes increased by nearly Rs 1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 percent over the previous month. Also, the GST Council extended the tenure of the anti-profiteering authority by two years till November 2021 and allowed use of Aadhaar as proof for obtaining GST registration while referring tax cut on electric vehicles and their chargers to an officers' committee. Though, markets erased all of the gains and entered in red terrain on back of selling pressure, as sentiments turned pessimistic with the Finance Ministry’s report that government's total liabilities reached Rs 84.68 lakh crore at the end of March 2019, up 1.5 per cent over the preceding quarter. The total liabilities stood at Rs 83.40 lakh crore at end-December 2018.
Market continued its weak run in the afternoon deals, as some concern came in with FICCI’s report that the outlook for the country's manufacturing sector in the April-June quarter of the current fiscal has moderated as only 41 per cent of respondents in its survey expected higher output growth during the ongoing quarter compared to 54 per cent in the January-March quarter. But, the market managed to trim most of the losses in last hour of trade as traders took of note of Niti Aayog’s statement that expert panel for macroeconomics and employment came out with suggestions to achieve $5 trillion economy target during an interaction with Prime Minister Narendra Modi. Improvement of governance in PSU banks, enhancing growth rate of exports & employment generation were some of the key areas identified.
All sectoral indices ended in red on NSE except PSU Bank and FMCG. The top gainers from the F&O segment were Jain Irrigation Systems, Suzlon Energy and Dewan Housing Finance Corporation. On the other hand, the top losers were Reliance Power, Glenmark Pharmaceuticals and Glenmark Pharmaceuticals. In the index option segment, maximum OI continues to be seen in the 11,900-12,100 calls and 11,450-11,600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.19 and reached 15.22. The 50-share Nifty was down by 24.45 points or 0.21% to settle at 11,699.65.
Nifty June 2019 futures closed at 11717.15 on Monday, at a premium of 17.50 points over spot closing of 11699.65, while Nifty July 2019 futures ended at 11761.05, at a premium of 61.40 points over spot closing. Nifty June futures saw a contraction of 1.15 million (mn) units, taking the total outstanding open interest (OI) to 15.70 mn units. The near month derivatives contract will expire on June 27, 2019.
From the most active contracts, Yes Bank June 2019 futures traded at a premium of 0.60 points at 112.00 compared with spot closing of 111.40. The numbers of contracts traded were 41,301.
Indiabulls Housing Finance June 2019 futures traded at a premium of 0.95 points at 618.65 compared with spot closing of 617.70. The numbers of contracts traded were 35,981.
Reliance Industries June 2019 futures traded at a premium of 3.30 points at 1265.15 compared with spot closing of 1261.85. The numbers of contracts traded were 28,691.
ICICI Bank June 2019 futures traded flat at 430.15 with spot closing of 430.15. The numbers of contracts traded were 25,902.
IndusInd Bank June 2019 futures traded at a premium of 4.70 points at 1463.70 compared with spot closing of 1459.00. The numbers of contracts traded were 24,417.
Among Nifty calls, 11,800 SP from the June month expiry was the most active call with an addition of 0.37 million open interests. Among Nifty puts, 11,700 from the June month expiry was the most active put with a contraction of 0.57 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.93 mn) and that for Puts was at 11,500 SP (2.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,745.70 -- Pivot Point 11,707.95 -- Support -- 11,661.90.
The Nifty Put Call Ratio (PCR) finally stood at 1.05 for June month contract. The top five scrips with highest PCR on OI were Bosch (1.64), TCS (1.51), MRPL (1.30), Colgate-Palmolive (India) (1.26) and Bajaj Finserv (1.20).
Among most active underlying, State Bank of India witnessed a contraction of 15.11 million units of Open Interest in the June month futures contract, followed by Reliance Industries witnessing a contraction of 4.08 million units of Open Interest in the June month contract, Maruti Suzuki India witnessed a contraction of 0.48 million units of Open Interest in the June month contract, Housing Development Finance Corporation witnessed a contraction of 6.16 million units of Open Interest in the June month contract and Tata Consultancy Services witnessed a contraction of 3.32 million units of Open Interest in the June month future contract.
