Nifty ends higher for second consecutive day

Continuing its positive journey for the second consecutive session, NSE gauge -- Nifty50 -- ended Wednesday’s session above its crucial 11,800 level. Initially, market made a cautious start, as some concern came with former RBI deputy governor Rakesh Mohan’s statement that manufacturing growth is not consistent with India's overall economic growth figures. He added that the country cannot grow at 8 per cent without manufacturing sector recording 10 per cent growth. However, market soon gained some momentum to trade on a firm note, as sentiments turned optimistic with Federation of Indian Export Organisations’ (FIEO) statement that the government's focus to improve logistics, ease of doing business and modern trade infrastructure will help exports to touch $1 trillion in the next three years. It added that India has huge potential to boost its exports of goods and services from the current $535 billion.

Market gained some more traction in last leg of the session, taking support from the Employees' State Insurance Corporation's (ESIC) gross payroll data showing that Job creation was slightly up at 10.88 lakh in April as compared with 10.77 lakh in the year-ago month. Gross new enrolments in 2018-19 stood at 1.49 crore, indicating that these many jobs were created in the financial year. Investors took note of report that the government will come out with a national e-commerce policy within 12 months to facilitate achieving holistic growth of the sector.

All sectoral indices ended in green on NSE except FMCG and IT stocks. The top gainers from the F&O segment were Reliance Infrastructure, Suzlon Energy and Allahabad Bank. On the other hand, the top losers were Britannia Industries, Hindustan Petroleum Corporation and The South Indian Bank. 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 1.73 and reached 14.75. The 50-share Nifty was up by 51.10 points or 0.43% to settle at 11,847.55.

Nifty June 2019 futures closed at 11864.40 on Wednesday, at a premium of 16.85 points over spot closing of 11847.55, while Nifty July 2019 futures ended at 11907.90, at a premium of 60.35 points over spot closing. Nifty June futures saw a contraction of 3.41 million (mn) units, taking the total outstanding open interest (OI) to 9.89 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 1.00 points at 113.35 compared with spot closing of 112.35. The numbers of contracts traded were 39,953.

ICICI Bank June 2019 futures traded at a premium of 0.90 points at 439.10 compared with spot closing of 438.20. The numbers of contracts traded were 32,177.

Reliance Industries June 2019 futures traded at a premium of 4.70 points at 1296.60 compared with spot closing of 1291.90. The numbers of contracts traded were 31,745.

HDFC Bank June 2019 futures traded at a discount of 1.50 points at 2463.50 compared with spot closing of 2465.00. The numbers of contracts traded were 27,886.

Indiabulls Housing Finance June 2019 futures traded at a premium of 3.10 points at 613.85 compared with spot closing of 610.75. The numbers of contracts traded were 25,901.

Among Nifty calls, 11,800 SP from the June month expiry was the most active call with a contraction of 1.14 million open interests. Among Nifty puts, 11,800 from the June month expiry was the most active put with an addition of 1.45 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.46 mn) and that for Puts was at 11,700 SP (3.91 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,893.75 -- Pivot Point 11,825.65 -- Support --11,779.45.

The Nifty Put Call Ratio (PCR) finally stood at 1.53 for June month contract. The top five scrips with highest PCR on OI were Bosch (1.64), TCS (1.48), Bajaj Finserv (1.36), Voltas (1.30) and Titan Company (1.25).

Among most active underlying, Reliance Industries witnessed a contraction of 5.96 million units of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 12.87 million units of Open Interest in the June month contract, Axis Bank witnessed a contraction of 9.23 million units of Open Interest in the June month contract, ICICI Bank witnessed a contraction of 18.37 million units of Open Interest in the June month contract and Housing Development Finance Corporation witnessed a contraction of 6.02 million units of Open Interest in the June month future contract.