After previous session’s bloodbath, NSE gauge -- Nifty50 -- retaliate back and snapped the optimistic day of trade with a gain of over half a percent. After making a cautious start, index gained momentum and traded in fine fettle, as traders took encouragement with Finance Minister Nirmala Sitharaman’s statement that the government planned steps to improve the state of the economy fairly quickly after getting inputs from business leaders. Market participants took note of a private report indicated that India's economy needs external capital flow to grow at 9% and touch $5 trillion in the next five years.
Indices added some more gain on the street in the afternoon deals, taking support from report that the ASSOCHAM expects the Reserve Bank of India to cut the benchmark policy Repo rate by 50 basis points or more, in the wake of a realistic assessment of the state of economy which needs an immediate demand push and investment support by way of reduced cost of borrowing. But, market trimmed some of its initial gains, as some cautiousness came in with report showing that retail loans given by banks in H1FY19 (January-June 2019) touched a five-year low at 7.3 per cent. The subdued numbers come at a time when dismal employment and low consumption demand have dragged economic growth. Meanwhile, to protect the interest of online shoppers, the Department of Consumer Affairs has released draft guidelines on e-commerce that state that an e-commerce entity cannot directly or indirectly influence the price of the goods or services.
Most of the NSE sectoral indices ended in green, except IT and Media. The top gainers from the F&O segment were DHFL, SRF and Indiabulls Housing Finance. On the other hand, the top losers were Vodafone Idea, Zee Entertainment Enterprises and Arvind. In the index option segment, maximum OI continues to be seen in the 10,900 - 11,100 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 decreased by 2.80 and reached 16.12.The 50 share Nifty was up by 85.65 points or 0.79% to settle at 10,948.25.
Nifty August 2019 futures closed at 10978.65 on Tuesday, at a premium of 30.40 points over spot closing of 10948.25, while Nifty September 2019 futures ended at 11031.10, at a premium of 82.85 points over spot closing. Nifty August futures saw a contraction of 1.11 million (mn) units, taking the total outstanding open interest (OI) to 18.79 mn units. The near month derivatives contract will expire on August 29, 2019.
From the most active contracts, Yes Bank August 2019 futures traded at a premium of 0.40 points at 85.95 compared with spot closing of 85.55. The numbers of contracts traded were 37,419.
Reliance Industries August 2019 futures traded at a premium of 11.90 points at 1134.25 compared with spot closing of 1122.35. The numbers of contracts traded were 32,975.
Indiabulls Housing Finance August 2019 futures traded at a discount of 3.30 points at 508.70 compared with spot closing of 512.00. The numbers of contracts traded were 31,163.
HDFC Bank August 2019 futures traded at a premium of 14.25 points at 2197.25 compared with spot closing of 2183.00. The numbers of contracts traded were 27,661.
ICICI Bank August 2019 futures traded at a premium of 0.65 points at 411.20 compared with spot closing of 410.55. The numbers of contracts traded were 25,413.
Among, Nifty calls, 11,000 SP from the August month expiry was the most active call with an addition of 0.06 million open interests. Among Nifty puts, 10800 from the August month expiry was the most active put with an addition of 0.05 million open interests. The maximum OI outstanding for Calls was at 11000 SP (2.22 mn) and that for Puts was at 11,000 SP (3.02 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,039.93--Pivot Point 10,926.87--Support--10,835.18
The Nifty Put Call Ratio (PCR) finally stood at 1.11 for August month contract. The top five scrips with highest PCR on Bosch (9.20), Hindustan Zinc (1.89), Century Textile and Industries (1.54), Siemens (1.36), Asian Paints (1.27).
Among most active underlying, Reliance Industries witnessed an addition of 0.20 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing a contraction of 0.65 million units of Open Interest in the August month contract, Titan Company witnessed an addition of 0.89 million units of Open Interest in the August month contract, Housing Development Finance Corporation witnessed an addition of 0.57 million units of Open Interest in the August month contract and SRF witnessed an addition of 0.33 million units of Open Interest in the August month future contract.
