Nifty reverses losses to end higher

After trading in negative terrain for the most part of the day, key equity benchmark -- Nifty -- reversed its losses to end the trading session on positive note on Wednesday. Indian benchmark made a negative start, amid a private report that despite the policymakers' efforts to revive the sagging growth momentum, the economy is set to print in a 5.7 percent uptick in the June quarter and is likely to bottom out from there. It noted that India presents a picture of short-term despair and medium term hope. Sentiments were further weighed down with private survey report which stated that reflecting subdued sentiments, India has been ranked fourth globally in terms of business optimism, as only 64 per cent of corporates are optimistic about the country's economic growth over the next 12 months.

Market recovered from the losses in the last leg of the trade to end the session in green zone, as traders took support from the government data showing that India received the highest-ever FDI inflow of $64.37 billion during the fiscal ended March 2019. According to the Annual Report 2018-19 of the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments (FDI) worth $286 billion were received in the country in past five years. Traders were also encouraged, after Minister of Petroleum and Natural Gas & Steel Dharmendra Pradhan launched Atal Community Innovation Centre (ACIC) in New Delhi, to encourage the spirit of innovation at the community level. This initiative aims to encourage the spirit of innovation through solution-driven design thinking to serve society.

Most of the NSE sectoral indices ended in green, except financial services, media and Realty. The top gainers from the F&O segment were Reliance Infrastructure, TVS Motor Company and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Zee Entertainment Enterprises, Axis Bank and Dish TV India. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,600  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 0.38 and reached 13.66.The 50 share Nifty was up by 32.60 points or 0.29% to settle at 11,118.00.

Among, Nifty calls, 11,300 SP from the August month expiry was the most active call with an addition of 0.31 million open interests. Among Nifty puts, 11,000 from the August month expiry was the most active put with an addition of 0.56 million open interests. The maximum OI outstanding for Calls was at 11500 SP (1.98 mn) and that for Puts was at 11,000 SP (3.51 mn). The respective Support and Resistance levels of Nifty are: Resistance  11,175.73--Pivot Point  11,087.57--Support--11,029.83.

The Nifty Put Call Ratio (PCR) finally stood at 1.22 for August month contract. The top five scrips with highest PCR on Bosch (13.33), Siemens (2.10), Hindustan Zinc (2.05), Godrej Consumer Products (1.94), Century Textile and Industries( 1.61).

Among most active underlying, Axis Bank witnessed an addition of 6.74 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing an addition of 2.55 million units of Open Interest in the August month contract, Reliance Industries witnessed an addition of 1.64 million units of Open Interest in the August month contract, ICICI Bank witnessed an addition of 4.39 million units of Open Interest in the August month contract and Bajaj Finance witnessed an addition of 0.05 million units of Open Interest in the August month future contract.