Bears continued to hold their control over the Indian equity market with Nifty snapping the day’s trade below its crucial 11,300 level as sluggish economic outlook dented investors’ sentiment. Nifty declined for the fifth session in a row dragged by Auto, Metal and Pharma stocks. After making a negative start, index continued to add losses, as traders remained concerned with report that the International Monetary Fund (IMF) projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its GDP will now grow respectively at the rate of 7 and 7.2 per cent reflecting a weaker-than expected outlook for domestic demand. Though, it also said India will still be the fastest growing major economy of the world and much ahead of China.
Index continued its weak run in the afternoon deals, as domestic sentiments remained down beaten with the Minister of State for Finance Anurag Singh Thakur stating that there is no official estimation of black money in the country, however, it has taken several concrete steps to crack down on illicit funds. However, the market managed to cut some of its losses, as investors found some comfort with Finance minister Nirmala Sitharaman signalled that the government may extend the lower corporate tax rate of 25% to all companies, giving India Inc. something to cheer about. Her July 5 budget had lowered the rate for most companies but excluded the biggest.
Most of the NSE sectoral indices ended in red, except FMGC and Media. The top gainers from the F&O segment were Torrent Pharmaceuticals, InterGlobe Aviation and Zee Entertainment Enterprises. On the other hand, the top losers were Mahindra & Mahindra Financial Services, Kajaria Ceramics and Jindal Steel & Power.In the index option segment, maximum OI continues to be seen in the 11,300 - 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 decreased by 4.97 and reached 12.76.The 50 share Nifty was down by 59.75 points or 0.53% to settle at 11,271.30.
Nifty July 2019 futures closed at 11277.80 on Wednesday, at a premium of 6.50 points over spot closing of 11271.30, while Nifty August 2019 futures ended at 11313.50, at a premium of 42.20 points over spot closing. Nifty July futures saw a contraction of 1.60 million (mn) units, taking the total outstanding open interest (OI) to 10.33 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 0.70 points at 89.45 compared with spot closing of 88.75. The numbers of contracts traded were 39,743.
ICICI Bank July 2019 futures traded at a premium of 1.15 points at 409.05 compared with spot closing of 407.90. The numbers of contracts traded were 32,939.
HDFC Bank July 2019 futures traded at a discount of 3.00 points at 2281.00 compared with spot closing of 2284.00. The numbers of contracts traded were 32,530.
Reliance Industries July 2019 futures traded at a premium of 1.55 points at 1261.55 compared with spot closing of 1260.00. The numbers of contracts traded were 31,512.
Tata Consultancy Services July 2019 futures traded at a premium of 1.50 points at 2099.05 compared with spot closing of 2097.55. The numbers of contracts traded were 27,318.
Among, Nifty calls, 11,300 SP from the July month expiry was the most active call with an addition of 1.74 million open interests. Among Nifty puts, 11,200 from the July month expiry was the most active put with a contraction of 0.30 million open interests. The maximum OI outstanding for Calls was at 11400 SP (3.77 mn) and that for Puts was at 11,300 SP (2.25 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,344.1 -- Pivot Point 11,286.95 -- Support --11,214.15.
The Nifty Put Call Ratio (PCR) finally stood at 0.59 for July month contract. The top five scrips with highest PCR on Page Industries (2.50), Bosch (2.00), Interglobe Aviation (1.33), Infosys (1.29), PVR (1.10).
Among most active underlying, State Bank of India witnessed a contraction of 15.90 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessed a contraction of 7.54 million units of Open Interest in the July month contract, Asian Paints witnessed a contraction of 1.42 million units of Open Interest in the July month contract, HDFC Bank witnessed a contraction of 3.51 million units of Open Interest in the July month contract and Axis Bank witnessed a contraction of 10.17 million units of Open Interest in the July month future contract.
