Nifty continues southbound journey for fourth straight day

Nifty continued its southbound journey for yet another day on Wednesday and settled the day’s trade with a cut of half a percentage point. After making a cautious start, market gained traction in initial deals, as traders took some support with Vice-chairman of Niti Aayog Rajiv Kumar’s statement that the target of achieving an economy of $5 trillion within 2024-25 is eminently doable and the private sector would have to take the lead. He added that there are several initiatives mentioned in the budget which point out to the willingness of the government to work along with the private sector. However, sentiments turned pessimistic and index entered into red terrain, as anxiety spread among market participants with Moody’s Investors Service’s statement that weak growth prospects for India will complicate the government's fiscal consolidation efforts, weighing on the sovereign's credit quality.

Afterwards, market continued to trade red throughout the session as traders remain concerned after Crisil in its earnings preview stating that India Inc will see the slowest quarterly revenue growth in two years, which will more than halve to 6 percent from 14-15 percent, due to a deceleration in consumption and lower realisations. Meanwhile, with rising focus on reducing dependency on carbon-based fuel for electricity generation, the government has waived off basic customs duty (BCD) for a clutch of products which are imported for nuclear power plants and allocated more funds in atomic energy research.

All sectoral indices ended in red on NSE. The top gainers from the F&O segment were REC, NMDC and Page Industries. On the other hand, the top losers were InterGlobe Aviation, Reliance Capital and Dish TV India. In the index option segment, maximum OI continues to be seen in the 11,900-12,100 calls and 11,200-11,400 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.38 and reached 13.63.The 50 share Nifty was down by 57.00 points or 0.49% to settle at 11,498.90.

Nifty July 2019 futures close at a discount of 6.65 points over spot closing .Nifty July 2019 futures closed at 11492.25 on Wednesday, at a discount of 6.65 points over spot closing of 11498.90, while Nifty August 2019 futures ended at 11554.15, at a premium of 55.25 points over spot closing. Nifty July futures saw an addition of 0.004 million (mn) units, taking the total outstanding open interest (OI) to 18.61 mn units. The near month derivatives contract will expire on August 29, 2019.

From the most active contracts, Tata Consultancy Services July 2019 futures traded at a premium of 6.55 points at 2111.85 compared with spot closing of 2105.30. The numbers of contracts traded were 34,593.

InterGlobe Aviation July 2019 futures traded at a premium of 6.00 points at 1398.00 compared with spot closing of 1392.00. The numbers of contracts traded were 32,168.

Bajaj Finance July 2019 futures traded at a premium of 16.50 points at 3435.50 compared with spot closing of 3419.00. The numbers of contracts traded were 23,367.

Yes Bank July 2019 futures traded at a premium of 0.10 points at 93.35 compared with spot closing of 93.25. The numbers of contracts traded were 22,385.

Tata Steel July 2019 futures traded at a premium of 1.65 points at 455.80 compared with spot closing of 454.15. The numbers of contracts traded were 21,977. 

Among, Nifty calls, 11,700 SP from the July month expiry was the most active call with an addition of 0.27 million open interests. Among Nifty puts, 11,500 from the July month expiry was the most active put with an addition of 0.14 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.22 mn) and that for Puts was at 11,300 SP (2.06mn). The respective Support and Resistance levels of Nifty are: Resistance 11,569.85 -- Pivot Point 11,522.75 --Support -- 11,451.80.

The Nifty Put Call Ratio (PCR) finally stood at 0.87 for July month contract. The top five scrips with highest PCR on Page Industries (3.79), Bosch Ltd. (3.50), Godrej Consumer Products(1.25 ), Birlasoft (1.21) and Mahanagar Gas (1.19).

Among most active underlying, Tata Consultancy Services witnessed an addition of 0.17million units of Open Interest in the July month futures contract, followed by State Bank of India witnessing a contraction of 0.49 million units of Open Interest in the July month contract, InterGlobe Aviation witnessed an addition of 0.74 million units of Open Interest in the July month contract, Bajaj Finance witnessed an addition of 0.02 million units of Open Interest in the July month contract and Reliance Industries witnessed a contraction of 0.73 million units of Open Interest in the July month future contract.