Nifty finishes with notable gains; holds 11,550 mark

The CNX Nifty garnered gains of over quarter a percent to end Monday’s session in green terrain, on the back of firm cues from other Asian markets. The day began on a positive note, as traders took some comfort with Finance Minister Nirmala Sitharaman’s statement that the government has succeeded in keeping ‘complete control’ over retail inflation. The government has achieved success in not allowing inflation to raise its ‘dirty’ head to cause inconvenience to the consumers. Some encouragement also came with the Reserve Bank’s report that the forex kitty continued to surge for the fourth successive week to scale a new lifetime high of $429.911 billion, after a heavy increase in the value of gold and currency assets during the week to July 5.

However, market soon turned volatile, as Central Statistics Office (CSO) data indicated that India's Index of Industrial Production (IIP) growth slipped to 3.1 per cent in May mainly on account of subdued performance of mining and manufacturing sector. The IIP had expanded by 3.8 per cent in May 2018. But, the index managed to bounce back in late afternoon deals, taking solace with credit rating agency, Fitch Ratings’ latest report stating that the Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets.

All sectoral indices ended in red except IT, Pharma and Auto on NSE. The top gainers from the F&O segment were Dish TV India, Infosys and Piramal Enterprises. On the other hand, the top losers were Dewan Housing Finance Corporation, Reliance Capital and RBL Bank. 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 increased by 0.19 and reached 12.02.The 50 share Nifty was up by 35.85 points or 0.31% to settle at 11,588.35.

Nifty July 2019 futures closed at 11579.20 on Monday, at a discount of 9.15 points over spot closing of 11588.35, while Nifty August 2019 futures ended at 11630.60, at a premium of 42.25 points over spot closing. Nifty July futures saw a contraction of 0.34 million (mn) units, taking the total outstanding open interest (OI) to 16.60 mn units. The near month derivatives contract will expire on July 25, 2019.

From the most active contracts, Yes Bank July 2019 futures traded at a premium of 0.60 points at 93.45 compared with spot closing of 92.85. The numbers of contracts traded were 48,605.

Infosys July 2019 futures traded at a premium of 0.70 points at 780.10 compared with spot closing of 779.40. The numbers of contracts traded were 40,166.

IndusInd Bank July 2019 futures traded at a premium of 5.35 points at 1478.80 compared with spot closing of 1473.45. The numbers of contracts traded were 27,305.

Sun Pharmaceutical July 2019 futures traded at a premium of 2.05 points at 422.45 compared with spot closing of 420.40. The numbers of contracts traded were 24,770.

Indiabulls Housing Finance July 2019 futures traded at a premium of 1.70 points at 638.65 compared with spot closing of 636.95. The numbers of contracts traded were 19,462.

Among, Nifty calls, 11,600 SP from the July month expiry was the most active call with an addition of 0.04 million open interests. Among Nifty puts, 11,500 from the July month expiry was the most active put with an addition of 0.29 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.20 mn) and that for Puts was at 11,300 SP (2.44 mn). The respective Support and Resistance levels of Nifty are: Resistance  11,627.0--Pivot Point -- 11,579.68-- Support--11,540.97.

The Nifty Put Call Ratio (PCR) finally stood at 0.97 for July month contract. The top five scrips with highest PCR on Bosch (3.00) Page Industries (2.93), Infosys (1.48), Tata Motors - DVR Ordinary (1.03) and  Mahanagar Gas (1.00).

Among most active underlying, Infosys witnessed a contraction of 2.13 million units of Open Interest in the July month futures contract, followed by IndusInd Bank witnessed a contraction of 0.48 million units of Open Interest in the July month contract, State Bank of India witnessed a contraction  of 3.10 million units of Open Interest in the July month contract, Tata Consultancy Services witnessed an addition of 0.19 million units of Open Interest in the July month contract and Sun Pharmaceutical Industries witnessed a contraction of 2.04 million units of Open Interest in the July month future contract.