S&P CNX Nifty exhibited a smart pull back in Thursday’s trade, ending with a gain of around a percentage point buoyed by strong cues from global markets after US Federal Reserve Chairman Jerome Powell hinted at a rate cut soon. Market made a positive start, as traders got some optimism with Commerce and Industry Minister Piyush Goyal’s statement that foreign direct investments (FDI) into the country grew 3 per cent to $6.95 billion in April. During 2018-19, the country recorded the highest-ever total FDI inflow of $64.38 billion, which is 6 per cent higher as compared to 2017-18. The market also drew some comfort with CBDT Chairman Pramod Chandra Mody’s statement that the government has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 trillion, a task that is difficult, but achievable.
The index continued the gaining momentum in the afternoon deals, taking support with Finance Minister Nirmala Sitharaman’s statement that the government is committed to the path of fiscal consolidation without compromising on public expenditure. She said several steps including enhancing investments in infrastructure, liberalisation in the foreign direct investment policy and lowering of corporate tax are being taken to make India a $5 trillion economy by 2024-25 as stated by government. Sentiment also got boost with report that India has the potential to become the world’s future investment hub and is expected to be the fastest-growing market for investment professionals over the next decade. Besides, appreciation in the Indian rupee too supported the market.
All sectoral indices ended in green on NSE. The top gainers from the F&O segment were Dish TV India, Reliance Infrastructure and Zee Entertainment Enterprises. On the other hand, the top losers were InterGlobe Aviation, Birlasoft and Bharat Heavy Electricals. 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 8.54 and reached 12.47. The 50 share Nifty was up by 84.00 points or 0.73% to settle at 11,582.90.
Nifty July 2019 futures closed at 11582.05 on Thursday, at a discount of 0.85 points over spot closing of 11582.90, while Nifty August 2019 futures ended at 11636.50, at a premium of 53.60 points over spot closing. Nifty July futures saw a contraction of 1.03 million (mn) units, taking the total outstanding open interest (OI) to 17.58 mn units. The near month derivatives contract will expire on July 25, 2019.
From the most active contracts, InterGlobe Aviation July 2019 futures traded at a premium of 2.90 points at 1354.90 compared with spot closing of 1352.00. The numbers of contracts traded were 35,226.
Yes Bank July 2019 futures traded at a discount of 0.25 points at 93.00 compared with spot closing of 93.25. The numbers of contracts traded were 26,357.
IndusInd Bank July 2019 futures traded at a discount of 1.30 points at 1539.70 compared with spot closing of 1541.00. The numbers of contracts traded were 20,560.
Bajaj Finance July 2019 futures traded at a discount of 2.10 points at 3459.90 compared with spot closing of 3462.00. The numbers of contracts traded were 20,370.
Maruti Suzuki India July 2019 futures traded at a premium of 35.90 points at 6048.90 compared with spot closing of 6013.00. The numbers of contracts traded were 17,601.
Among, Nifty calls, 11,600 SP from the July month expiry was the most active call with a contraction of 0.21 million open interests. Among Nifty puts, 11,500 from the July month expiry was the most active put with a contraction of 0.15 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.23 mn) and that for Puts was at 11,300 SP (2.14 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,614.77 -- Pivot Point 11,567.13 -- Support -- 11,535.27.
The Nifty Put Call Ratio (PCR) finally stood at 0.90 for July month contract. The top five scrips with highest PCR on Bosch (3.50), Page Industries (2.14), Mahanagar Gas (1.31), Godrej Consumer Products (1.20) and Tata Motor DVR (1.04).
Among most active underlying, InterGlobe Aviation witnessed an addition of 0.69 million units of Open Interest in the July month futures contract, followed by State Bank of India witnessing an addition of 1.35 million units of Open Interest in the July month contract, Bajaj Finance witnessed an addition of 0.03 million units of Open Interest in the July month contract, IndusInd Bank witnessed an addition of 0.18 million units of Open Interest in the July month contract and Reliance Industries witnessed a contraction of 0.23 million units of Open Interest in the July month future contract.
