Nifty ends topsy-turvy trade in red

Nifty wiped-off early gains to end topsy-turvy trade with a cut of about quarter a percentage point on Friday, as caution set in ahead of key macro data - index of industrial production (IIP) for May and consumer price index-based inflation for June. An index made a positive start but soon lost momentum as traders remained cautious with former finance minister P Chidambaram’s statement that the Union Budget 2019-20 does not chalk out a clear roadmap to take India on the path of high economic growth and lacks bold steps and structural reforms. However, market soon recouped losses to trade on a positive note, taking support from report that as rainfall in the first 11 days of this month was 24% more than ‘normal’, the overall season’s rain deficit came down to 12%, from 33% witnessed in June. The report said continuance of the current spell of showers for another week may help the farmers to complete the kharif sowing operations which were down by 27% until last week from the year-ago level.

However, traders booked profit whenever market got traction during the day as some anxiety persisted with US Commerce Secretary Wilbur Ross’ statement that India must recognize that its protectionist policies and tariff rules are hurting its companies and are a big impediment to attracting foreign direct investment. Traders ignored Finance Minister Nirmala Sitharaman’s statement that the big picture presented in the Budget is backed with a plan to increase investment without compromising on the fiscal consolidation roadmap.

Traders were seen piling up positions in Metal, Realty and Media stocks, while selling was witnessed in PVT Bank, Bank and Fin Service. The top gainers from the F&O segment were REC, Jindal Steel & Power and Max Financial Services. On the other hand, the top losers were Dewan Housing Finance Corporation, Wipro and Engineers 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 4.49 and reached 11.91.The 50 share Nifty was down by 30.40 points or 0.26% to settle at 11,552.50.

Nifty July 2019 futures closed at 11544.35 on Friday, at a discount of 8.15 points over spot closing of 11552.50, while Nifty August 2019 futures ended at 11599.75, at a premium of 47.25 points over spot closing. Nifty July futures saw a contraction of 0.64 million (mn) units, taking the total outstanding open interest (OI) to 16.94 mn units. The near month derivatives contract will expire on July 25, 2019.

From the most active contracts, IndusInd Bank July 2019 futures traded at a discount of 5.15 points at 1511.90 compared with spot closing of 1517.05. The numbers of contracts traded were 57,295.

Reliance Industries July 2019 futures traded at a premium of 0.45 points at 1279.00 compared with spot closing of 1278.55. The numbers of contracts traded were 27,966.

Yes Bank July 2019 futures traded at a premium of 0.30 points at 94.65 compared with spot closing of 94.35. The numbers of contracts traded were 21,584.

Tata Steel July 2019 futures traded at a premium of 1.55 points at 474.15 compared with spot closing of 472.60. The numbers of contracts traded were 21,027.

InterGlobe Aviation July 2019 futures traded at a premium of 5.85 points at 1353.85 compared with spot closing of 1348.00. The numbers of contracts traded were 19,058.

Among, Nifty calls, 11,600 SP from the July month expiry was the most active call with an addition of 0.24 million open interests. Among Nifty puts, 11,500 from the July month expiry was the most active put with an addition of 0.05 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.21 mn) and that for Puts was at 11,300 SP (1.99 mn). The respective Support and Resistance levels of Nifty are: Resistance  11,615.17--Pivot Point-- 11,576.88--Support--11,514.22

The Nifty Put Call Ratio (PCR) finally stood at 0.87 for July month contract. The top five scrips with highest PCR on Bosch (3.00)Page Industries (2.85), , Mahanagar Gas (1.25), Godrej Consumer Products (1.22) and Birlasoft (1.05).

Among most active underlying, IndusInd Bank witnessed a contraction  of 0.17 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessed  a contraction of 0.33 million units of Open Interest in the July month contract, State Bank of India witnessed an addition of 0.39 million units of Open Interest in the July month contract, Bajaj Finance witnessed an addition of 0.12 million units of Open Interest in the July month contract and Infosys witnessed an addition of 1.23 million units of Open Interest in the July month future contract.