After a cautious start, domestic index S&P CNX Nifty gave a powerful surge, snapping Tuesday’s trade in a great fashion with gains of around a percent. Initially, the Indian benchmark made a negative start, as traders remained concern with a report that unaccounted wealth outside the country held by Indians was estimated in the range of $216.48 billion to $490 billion over various periods between 1980 and 2010. As per the report, the sectors where unaccounted income is found to be the highest included real estate, mining, pharmaceuticals, pan masala, gutkha, tobacco, bullion, commodity, film, and education. However, market gathered some pace in the early noon deal and continue firm trade, taking support with the India Meteorological Department’s (IMD) statement that India's annual monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week. It added that the monsoon's progress will help farmers to accelerate sowing of summer-sown crops, which has been lagging due to a delay in the arrival of monsoon rains.
Buying got intensified during final hours of trade, as sentiments were buoyed with a private report stating that barriers in trade have fallen and many processes have been simplified as a result of the series of key reforms instituted by the Indian government. Traders remain energized with a report that the Ministry of Micro, Small and Medium Enterprises is striving to increase the number of micro and small industries in the country on a sustainable basis through implementation of various schemes and programmes. Traders took a note of Former Vice Chairman of NITI Aayog, Arvind Panagariya’s statement that India's economy needs to grow at 8-10 per cent annually if good jobs have to be provided to those joining the workforce, emphasising that an export-led growth is very critical for creation of good jobs in the country.
All sectoral indices ended in green on NSE. The top gainers from the F&O segment were IFCI, Torrent Power and Manappuram Finance. On the other hand, the top losers were Reliance Power, Reliance Infrastructure and Reliance Capital. 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 decreased by 1.40 and reached 15.01. The 50-share Nifty was up by 96.80 points or 0.83% to settle at 11,796.45.
Nifty June 2019 futures closed at 11810.30 on Tuesday, at a premium of 13.85 points over spot closing of 11796.45, while Nifty July 2019 futures ended at 11850.25, at a premium of 53.80 points over spot closing. Nifty June futures saw a contraction of 2.39 million (mn) units, taking the total outstanding open interest (OI) to 13.31 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 0.55 points at 110.20 compared with spot closing of 109.65. The numbers of contracts traded were 48,446.
Reliance Industries June 2019 futures traded at a premium of 0.80 points at 1296.20 compared with spot closing of 1295.40. The numbers of contracts traded were 45,417.
ICICI Bank June 2019 futures traded at a premium of 0.95 points at 433.95 compared with spot closing of 433.00. The numbers of contracts traded were 36,149.
Tata Steel June 2019 futures traded at a premium of 2.70 points at 498.80 compared with spot closing of 496.10. The numbers of contracts traded were 27,987.
Indiabulls Housing Finance June 2019 futures traded at a premium of 3.35 points at 622.35 compared with spot closing of 619.00. The numbers of contracts traded were 26,928.
Among Nifty calls, 11,800 SP from the June month expiry was the most active call with a contraction of 0.98 million open interests. Among Nifty puts, 11,700 from the June month expiry was the most active put with an addition of 1.62 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.49 mn) and that for Puts was at 11,700 SP (4.01 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,856.90 -- Pivot Point 11,753.95 -- Support -- 11,693.50.
The Nifty Put Call Ratio (PCR) finally stood at 1.35 for June month contract. The top five scrips with highest PCR on OI were Bosch (1.64), TCS (1.47), Bajaj Finserv (1.28), MRPL (1.24) and Colgate-Palmolive (India) (1.22).
Among most active underlying, Reliance Industries witnessed a contraction of 8.24 million units of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 17.64 million units of Open Interest in the June month contract, Axis Bank witnessed a contraction of 12.81 million units of Open Interest in the June month contract, ICICI Bank witnessed a contraction of 22.82 million units of Open Interest in the June month contract and Tata Steel witnessed a contraction of 6.04 million units of Open Interest in the June month future contract.
