Nifty end lower for third straight day

NSE gauge -- Nifty50 -- extended losing streak for third straight session and ended with a cut of over half a percent. Market started the session on pessimistic note with the Reserve Bank of India’s (RBI) data showing that after touching record highs, the foreign exchange reserves declined by $1.113 billion to $428.797 billion in the week to July 12 - the first fall after four consecutive weeks of gains - due to a fall in foreign currency assets. Market traded sluggish throughout the day as anxiety persisted with a data showing that investments through participatory notes (P-notes) in the Indian capital market slipped to Rs 81,913 crore in June after posting growth for the previous four months. In the previous four months, cumulative investment of Rs 73,428 crore was made till the end of February, Rs 78,110 crore till March-end, Rs 81,220 crore till April-end and Rs 82,619 till May-end.

Traders shrugged off report that Asian Development Bank (ADB) has lowered the inflation forecast for India during the current financial year by 0.2 percentage points to 4.1 percent, on the back of gain in rupee and cut in the country's GDP projection. The market participants even overlooked NITI Aayog Vice Chairman Rajiv Kumar’s statement that India will achieve Gross domestic product (GDP) growth of 8 percent plus from fiscal year 2020-2021 onwards as structural reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) are set to produce the benefits.

NSE sectoral indices exhibited mixed close with metal and media remained the top gainers, while financial services and Nifty banking counter remained the top losers on NSE sectoral front. The top gainers from the F&O segment were Yes Bank, Dish TV and Adani Power. On the other hand, the top losers were Just Dial, Bajaj Finserv and HDFC. 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 0.50 and reached 13.01. The 50 share Nifty was down by 73.05 points or 0.64% to settle at 11,346.20.

Nifty July 2019 futures closed at 11360.25 on Monday, at a premium of 23.10 points over spot closing of 11337.15, while Nifty August 2019 futures ended at 11403.95, at a premium of 66.80 points over spot closing. Nifty July futures saw a contraction of 2.44 million (mn) units, taking the total outstanding open interest (OI) to 12.66 mn units. The near month derivatives contract will expire on July 25, 2019.

From the most active contracts, Reliance Industries July 2019 futures traded at a premium of 2.85 points at 1280.95 compared with spot closing of 1278.10. The numbers of contracts traded were 68,128.

Yes Bank July 2019 futures traded at a premium of 0.40 points at 91.55 compared with spot closing of 91.15. The numbers of contracts traded were 67,679.

HDFC Bank July 2019 futures traded at a premium of 1.80 points at 2304.60 compared with spot closing of 2302.80. The numbers of contracts traded were 41,439.

ICICI Bank July 2019 futures traded at a premium of 1.00 points at 412.85 compared with spot closing of 411.85. The numbers of contracts traded were 29,526.

Bajaj Finance July 2019 futures traded at a premium of 1.00 points at 3258.00 compared with spot closing of 3257.00. The numbers of contracts traded were 29,095. 

Among, Nifty calls, 11,400 SP from the July month expiry was the most active call with an addition of 2.21 million open interests. Among Nifty puts, 11,400 from the July month expiry was the most active put with An addition of 0.71 million open interests. The maximum OI outstanding for Calls was at 11600 SP (3.26 mn) and that for Puts was at 11,200 SP (2.20 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,395.82 -- Pivot Point 11,348.53 -- Support 11,298.92.

The Nifty Put Call Ratio (PCR) finally stood at 0.71 for July month contract. The top five scrips with highest PCR on Page Industries (2.73), Bosch (2.10), Infosys (1.50), Mahanagar Gas (1.03) and Oracle Financial Services Software (1.00).

Among most active underlying, Reliance Industries witnessed a contraction of 7.69 million units of Open Interest in the July month futures contract, followed by State Bank of India witnessed a contraction of 5.87 million units of Open Interest in the July month contract, HDFC Bank witnessed a contraction of 2.35 million units of Open Interest in the July month contract, Housing Development Finance Corporation witnessed a contraction of 5.78 million units of Open Interest in the July month contract and Bajaj Finance witnessed a contraction of 0.81 million units of Open Interest in the July month future contract.