After seesawing between the green and red territory near its crucial 10,950 mark for most part of the day’s trade, domestic benchmark CNX S&P Nifty snapped Wednesday’s trading session with a cut off around a percent on account of late hour sell off. Market made a cautious start, as traders remained concerned with economic think-tank NCAER’s statement that India's GDP growth is likely to be 6.2 per cent during the current fiscal, down from 6.8 per cent in 2018-19, on account of flat growth in agriculture sector. The prospects for agricultural sector in 2019-20 depend largely on the south-west monsoon. However, some buying crept in after the RBI's monetary policy committee (MPC) reduced the repo rate by 35 basis points (bps) to 5.40 percent from 5.75 percent for fourth time in a row, to help revive the economy. Selling got intensified during the late hours of the trade, as anxiety remained among the investors with the Reserve Bank of India (RBI) lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent forecast in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand.
Most of the NSE sectoral indices ended in red, except IT, Media and Pharma. The top gainers from the F&O segment were MindTree, Lupin and Arvind. On the other hand, the top losers were Jindal Steel & Power, Indiabulls Housing Finance and Dewan Housing Finance Corporation. In the index option segment, maximum OI continues to be seen in the 11350 - 11,700 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 3.85 and reached 16.74.The 50 share Nifty was down by 92.75 points or 0.85% to settle at 10,855.50.
Nifty August 2019 futures closed at 10874.25 on Wednesday, at a premium of 18.75 points over spot closing of 10855.50, while Nifty September 2019 futures ended at 10924.25, at a premium of 68.75 points over spot closing. Nifty August futures saw a contraction of 0.18 million (mn) units, taking the total outstanding open interest (OI) to 18.62 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 0.05 points at 87.10 compared with spot closing of 87.05. The numbers of contracts traded were 60,412.
Indiabulls Housing Finance August 2019 futures traded at a discount of 12.70 points at 432.45 compared with spot closing of 445.15. The numbers of contracts traded were 56,345.
Reliance Industries August 2019 futures traded at a premium of 9.25 points at 1113.65 compared with spot closing of 1104.40. The numbers of contracts traded were 35,116.
State Bank of India August 2019 futures traded at a premium of 2.15 points at 291.20 compared with spot closing of 289.05. The numbers of contracts traded were 29,812.
ICICI Bank August 2019 futures traded at a premium of 1.10 points at 408.50 compared with spot closing of 407.40. The numbers of contracts traded were 28,167.
Among, Nifty calls, 11,000 SP from the August month expiry was the most active call with an addition of 0.23 million open interests. Among Nifty puts, 10800 from the August month expiry was the most active put with a contraction of 0.01 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.45 mn) and that for Puts was at 11,000 SP (2.90 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,848.97 --Pivot Point 10,842.43 --Support--10,848.97.
The Nifty Put Call Ratio (PCR) finally stood at 1.02 for August month contract. The top five scrips with highest PCR on Bosch (9.20), Hindustan Zinc (1.87), Century Textile and Industries (1.48), Asian Paints (1.25), Hindustan Unilever (1.20).
Among most active underlying, State Bank of India witnessed an addition of 3.00 million units of Open Interest in the August month futures contract, followed by Reliance Industries witnessing a contraction of 0.30 million units of Open Interest in the August month contract, Indiabulls Housing Finance witnessed an addition of 2.42 million units of Open Interest in the August month contract, Titan Company witnessed a contraction of 0.29 million units of Open Interest in the August month contract and Bajaj Finance witnessed an addition of 0.01 million units of Open Interest in the August month future contract.
