Rising for the second straight session, key equity benchmark -- Nifty -- ended Tuesday’s trade with gains of over half a percent, buoyed by positive cues from European markets. An index made a cautious start but soon gained momentum and traded in fine fettle, as traders remained optimistic with Finance Minister Nirmala Sitharaman’s statement that GST collection of states and union territories (UTs) increased to Rs 5.18 lakh crore in the full financial year 2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18. Market participants took a note of Commerce and Industry Minister Piyush Goyal’s statement that India is open to ideas from all sides to strengthen investors' confidence so that they can invest and participate in the country's development.
Key index extended its gains in the last leg of the trade, taking support from a private report stating that domestic catalysts suggest a largely positive outlook for the bond market in the short-term, despite the recent correction in Indian bond yields. The market participants ignored a report which stated that India’s exports declined by 9.71 per cent to $25.01 billion in June 2019 compared to $27.7 billion in the same month last year due to a fall in shipments of gems and jewellery, engineering goods and petroleum products. Imports too declined by 9 per cent to $40.29 billion in June 2019 against $44.3 billion in June 2018 mainly and the trade deficit lowered to $15.28 billion in June from $16.6 billion in June 2018.
All sectoral indices ended in green except IT and Media on NSE. The top gainers from the F&O segment were Yes Bank, Manappuram Finance and Tata Motors. On the other hand, the top losers were RBL Bank, Reliance Capital and Just Dial. 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 3.83 and reached 11.56.The 50 share Nifty was up by 74.25 points or 0.64% to settle at 11,662.60.
Nifty July 2019 futures closed at 11657.85 on Tuesday, at a discount of 4.75 points over spot closing of 11,662.60, while Nifty August 2019 futures ended at 11703.85, at a premium of 41.25 points over spot closing. Nifty July futures saw a contraction of 0.22 million (mn) units, taking the total outstanding open interest (OI) to 16.38 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 discount of 1.85 points at 104.40 compared with spot closing of 106.25. The numbers of contracts traded were 85,499.
Indiabulls Housing Finance July 2019 futures traded at a premium of 4.15 points at 648.05 compared with spot closing of 643.90. The numbers of contracts traded were 25,716.
Reliance Industries July 2019 futures traded at a premium of 0.85 points at 1292.95 compared with spot closing of 1292.10. The numbers of contracts traded were 18,380.
ICICI Bank July 2019 futures traded at a premium of 0.05 points at 424.80 compared with spot closing of 424.75. The numbers of contracts traded were 17,825.
Federal Bank July 2019 futures traded at a premium of 0.40 points at 105.85 compared with spot closing of 105.45. The numbers of contracts traded were 17,697.
Among, Nifty calls, 11,700 SP from the July month expiry was the most active call with an addition of 0.08 million open interests. Among Nifty puts, 11,600 from the July month expiry was the most active put with an addition of 0.61 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 ( 2.36 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,697.12 -- Pivot Point 11,635.53 -- Support -- 11,601.02.
The Nifty Put Call Ratio (PCR) finally stood at 0.99 for July month contract. The top five scrips with highest PCR on Bosch (2.63) Page Industries (2.85), Infosys (1.70), Sun Pharmaceutical Industries (1.25) and Mahanagar Gas (1.07).
Among most active underlying, Infosys witnessed a contraction of 0.30 million units of Open Interest in the July month futures contract, followed by Yes Bank witnessed a contraction of 2.06 million units of Open Interest in the July month contract, The Federal Bank witnessed a contraction of 0.53 million units of Open Interest in the July month contract, State Bank of India witnessed a contraction of 1.43 million units of Open Interest in the July month contract and Reliance Industries witnessed a contraction of 0.71 million units of Open Interest in the July month future contract.
