Nifty trades jubilantly; surpasses 11,100-mark

Rising for the second straight session NSE gauge -- Nifty50 -- ended Friday’s trade above its crucial 11,100 level, ahead of the government's meeting with foreign portfolio investors (FPIs) and representatives from the financial sector. The market was supported by all the sectoral indices on the NSE ending in green with banking, Auto and Financial Services leading the up-move. Market made a gap-up start amid reports that the government is likely to withdraw higher surcharge on foreign portfolio investors (FPIs). Local investors also cheered with a report that giving a relief to startups, the government has laid out a procedure to address pending angel tax assessments under which action would be taken only after approval of a supervisory officer. Traders took note of report that India Inc. demanded a stimulus package of over Rs 1 lakh crore to kick-start investment cycle and revive the economy which is showing signs of a slowdown.

Index gave up major of its gain in final hours of the trade and came off its intraday high points, as market-men turned concerned with India Ratings and Research (Ind-Ra) latest report stating that the huge Rs 3 trillion capital infusion by the government into Public Sector Banks (PSBs) between FY14 and FY19 has helped them cut losses but has failed to contribute meaningfully to credit growth. But, the trade remained in positive terrain, as some encouragement remained among the investors with Agriculture Minister Narendra Singh Tomar’s statement that the deficit in southwest monsoon has narrowed and the sowing of summer (Kharif) crops is progressing well across the country.

Traders were seen piling up positions in Bank, Auto and Financial services, while selling was witnessed in IT, Media and Metal. The top gainers from the F&O segment were Indiabulls Housing Finance, Motherson Sumi Systemsand Mahindra & Mahindra Financial Services. On the other hand, the top losers were NBCC (India), Yes Bank and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,550 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 1.54 and reached 15.84.The 50 share Nifty was up by 77.20 points or 0.70% to settle at 11,109.65.

Nifty August 2019 futures closed at 11122.95 on Friday, at a premium of 13.30 points over spot closing of 11109.65, while Nifty September 2019 futures ended at 11174.00, at a premium of 64.35 points over spot closing.Nifty August futures saw a contraction of 0.58 million (mn) units, taking the total outstanding open interest (OI) to 17.85 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 discount of 0.25 points at 81.95 compared with spot closing of 82.20. The numbers of contracts traded were 90,780.

Indiabulls Housing Finance August 2019 futures traded at a discount of 22.90 points at 487.10 compared with spot closing of 510.00. The numbers of contracts traded were 49,402.

Reliance Industries August 2019 futures traded at a premium of 4.90 points at 1165.90 compared with spot closing of 1161.00. The numbers of contracts traded were 38,025.

HDFC Bank August 2019 futures traded at a discount of 1.85 points at 2283.15 compared with spot closing of 2285.00. The numbers of contracts traded were 32,748.

Maruti Suzuki India August 2019 futures traded at a discount of 77.20 points at 6023.05 compared with spot closing of 6100.25. The numbers of contracts traded were 29,777.

Among, Nifty calls, 11,300 SP from the August month expiry was the most active call with a contraction of 0.29 million open interests. Among Nifty puts, 11000 from the August month expiry was the most active put with a contraction of 0.07 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.40 mn) and that for Puts was at 11,000 SP (3.33 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,173.13--Pivot Point 11,117.97--Support--11,054.48. 

The Nifty Put Call Ratio (PCR) finally stood at 1.21 for August month contract. The top five scrips with highest PCR on Oracle Financial Services Software (2.00), Hindustan Zinc (1.78), Godrej Consumer Products(1.71),Bosch (1.67), Hindustan Unilever (1.47).

Among most active underlying, Reliance Industries witnessed an addition of 0.15 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing a contraction of 0.87 million units of Open Interest in the August month contract, Maruti Suzuki India witnessed a contraction of 0.25 million units of Open Interest in the August month contract, HDFC Bank witnessed a contraction of 2.29 million units of Open Interest in the August month contract and Indiabulls Housing Finance witnessed a contraction of 0.72 million units of Open Interest in the August month future contract.