Late wave of selling drags Nifty lower

30 Jul 2019 Evaluate

NSE gauge -- Nifty50 -- failed to hold on to its initial gains and ended in red terrain due to sell off in last leg of trade. Market settled with a cut of around a percentage point weighed down by sharp selling in frontline counters. Initially, the Indian benchmark made a positive opening, as traders took encouragement with SBI Ecowrap report stated that India has benefited from the US-China trade war by exporting more items to China. Overall exports to the US grew 9.46 per cent to $52.4 billion in 2018-19, for China the growth was 25.6 per cent to $16.7 billion. Some optimism also came as Finance Minister Nirmala Sitharaman called for a significant reduction in the central bank's policy rates and said the government did not intend to review the budget proposal for overseas sovereign borrowings.

However, market wiped out all of its gains to enter into negative territory and settled near intraday low level, as markets remained under pressure with CARE Ratings’ report that India is staring at a rise in food inflation soon, as weak monsoon rainfall hits the country’s food output. It said the retail inflation in the food components for June 2019 has risen to 13-months high & weak progress going ahead could push food inflation higher. Sentiments were further dented Moody’s report that even as more and more crippled banks come out of the dud asset tunnel, the heightening growth slowdown & the lingering crisis at non-banking lenders pose fresh challenges to their asset quality.

Most of the NSE sectoral indices ended in red, except IT. The top gainers from the F&O segment were Strides Pharma Science, Bharat Electronics and Bharti Airtel. On the other hand, the top losers were NBCC (India), RBL Bank and Yes Bank.In the index option segment, maximum OI continues to be seen in the 11,100- 11,350 calls and 10,900- 11,100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.21 and reached 13.61.The 50 share Nifty was down by 103.80 points or 0.93% to settle at 11,085.40.

Among, Nifty calls, 11,300 SP from the August month expiry was the most active call with an addition of 0.57 million open interests. Among Nifty puts, 11,000 from the August month expiry was the most active put with an addition of 0.29 million open interests. The maximum OI outstanding for Calls was at 11300 SP (1.68 mn) and that for Puts was at 11,000 SP (3.20 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,211.02--Pivot Point 11,141.83--Support--11,016.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.17 for August month contract. The top five scrips with highest PCR on Bosch (12.33), Page Industries (3.50), Hindustan Zinc (2.21), Siemens (2.19), Cummins India (2.08).

Among most active underlying, Axis Bank witnessed an addition of 1.35 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing an addition of 4.18 million units of Open Interest in the August month contract, Reliance Industries witnessed an addition of 1.58 million units of Open Interest in the August month contract, ICICI Bank witnessed a contraction of 6.77 million units of Open Interest in the August month contract and Indiabulls Housing Finance witnessed an addition of 4.08 million units of Open Interest in the August month future contract.

Late wave of selling drags Nifty lower

Create stable, long-term investment portfolio with strong, consistent stocks.

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.