Nifty witness considerable losses; plunges 1.50%

NSE gauge -- Nifty50 -- witnessed considerable losses on the last day of the week, sliding below its crucial 11,450 levels during the day, on the back of sustained selling activities by traders and disappointed quarterly earnings. It was a negative start to the market, as Finance Minister Nirmala Sitharaman dashed hope of a tweak in FPI surcharge. Some concerns also crept in with the International Monetary Fund (IMF) report that India's current account (CA) balance deficit grew to $68 billion in 2018-19 from $49 billion the previous year, and it said the deficit was justified by development needs. Besides, India's overall international reserves, stood at $411.9 billion at the end of March this year, down from March last year by $12.5 billion.

Market further extended losses in the afternoon deals, as sticking to his analysis that India's economic growth has been overestimated, Arvind Subramanian said he had raised doubts about the GDP numbers in 2015 when he was the chief economic adviser of the Modi government as he found inconsistency between projected growth and other macro indicators. Traders failed to draw any sense of relief from NITI Aayog Vice Chairman Rajiv Kumar’s statement that the focus of the second term of the Narendra Modi government is accelerated economic growth led by the private sector and private enterprise. He asserted that India will be at the cusp of a major transformation over the next five years.

All sectoral indices ended in red on NSE. The top gainers from the F&O segment were Just Dial, NTPC and Bharat Electronics. On the other hand, the top losers were RBL Bank, Reliance Infrastructure and Biocon. In the index option segment, maximum OI continues to be seen in the 11,400-11,800 calls and 11,100-11,500 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 6.51 and reached 12.51.The 50 share Nifty was down by 177.65 points or 1.53% to settle at 11,419.25.

Nifty July 2019 futures closed at 11421.85 on Friday, at a premium of 2.60 points over spot closing of 11419.25, while Nifty August 2019 futures ended at 11461.45, at a premium of 42.20 points over spot closing. Nifty July futures saw a contraction of 0.49 million (mn) units, taking the total outstanding open interest (OI) to 15.10 mn units. The near month derivatives contract will expire on July 25, 2019.

From the most active contracts, RBL Bank July 2019 futures traded at a premium of 1.55 points at 501.55 compared with spot closing of 500.00. The numbers of contracts traded were 46,553.

Yes Bank July 2019 futures traded at a premium of 0.60 points at 83.35 compared with spot closing of 82.75. The numbers of contracts traded were 41,178.

Reliance Industries July 2019 futures traded at a discount of 1.75 points at 1251.25 compared with spot closing of 1253.00. The numbers of contracts traded were 37,379.

Bajaj Finance July 2019 futures traded at a premium of 0.45 points at 3322.45 compared with spot closing of 3322.00. The numbers of contracts traded were 27,232.

Dabur India July 2019 futures traded at a discount of 5.25 points at 419.70 compared with spot closing of 424.95. The numbers of contracts traded were 26,433. 

Among, Nifty calls, 11,600 SP from the July month expiry was the most active call with an addition of 1.75 million open interests. Among Nifty puts, 11,500 from the July month expiry was the most active put with a contraction of 0.64 million open interests. The maximum OI outstanding for Calls was at 11600 SP (3.52 mn) and that for Puts was at 11,300 SP (3.04 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,573.30 -- Pivot Point  11,486.30 -- Support -- 11,332.25.

The Nifty Put Call Ratio (PCR) finally stood at 0.74 for July month contract. The top five scrips with highest PCR on Page Industries (2.71), Bosch (2.10), Infosys (1.69), Mahanagar Gas (1.05) and HDFC (1.02).

Among most active underlying, Reliance Industries witnessed a contraction of 1.83 million units of Open Interest in the July month futures contract, followed by RBL Bank witnessed an addition of 1.00 million units of Open Interest in the July month contract, State Bank of India witnessed a contraction of 3.00 million units of Open Interest in the July month contract, Bajaj Finance witnessed a contraction of 0.17 million units of Open Interest in the July month contract and IndusInd Bank witnessed a contraction of 1.91 million units of Open Interest in the July month future contract.