Nifty ends slightly higher; holds 11,000 mark

After getting onto a muted start, the index of National Stock Exchange (NSE) -Nifty- managed to pocket in slender gains, to clock second consecutive session of gains. Market started the session on pessimistic note as traders remain concerned with report that India Inc.’s growth engine slowed in the June quarter amid sluggish demand across sectors and the base effect in the form of a strong expansion in the year-ago period, reflecting the overall slowdown in the economy. Market participants also took note of report that the current economic slowdown can be attributed to a combination of structural and cyclical factors, in addition to global uncertainties. It added that the country's economy is showing signs of slowdown, with hi-frequency indicators like industrial output posting subdued growth and automobile sales touching historical lows.

In the afternoon deals, market recouped losses and got back its crucial 11,000 mark, as traders took comfort with government data showing that India’s merchandise exports rebounded and grew 2.25% in July, aided by higher shipments of organic goods, drugs and pharmaceuticals, while imports shrank, narrowing the trade deficit. The commerce department data showed that India’s exports increased to $26.3 billion in July from $25.75 billion a year earlier, imports declined 10.4% to $39.76 billion last month from $44.39 billion in July 2018. This resulted in the trade deficit narrowing to $13.43 billion from $18.63 billion a year earlier. Some support came with Commerce Secretary Anup Wadhawan’s report that exports growth of the country in the current fiscal is likely to be in double digits despite the challenging situation both on the external and internal fronts. He added in the last financial year, growth in exports was between nine and 10% and the volume touched $331 billion.

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 Vodafone Idea, Apollo Hospitals Enterprise and Canara Bank. On the other hand, the top losers were IDBI Bank, Glenmark Pharmaceuticals and Reliance Infrastructure. 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 increased by 1.77 and reached 16.64.The 50 share Nifty was up by 18.40 points or 0.17% to settle at 11,047.80.

Nifty August 2019 futures closed at 11064.65 on Friday, at a premium of 16.85 points over spot closing of 11047.80, while Nifty September 2019 futures ended at 11111.75, at a premium of 63.95 points over spot closing. Nifty August futures saw an addition of 0.78 million (mn) units, taking the total outstanding open interest (OI) to 18.24 mn units. The near month derivatives contract will expire on August 29, 2019. 

From the most active contracts, Indiabulls Housing Finance August 2019 futures traded at a discount of 27.70 points at 534.00 compared with spot closing of 561.70. The numbers of contracts traded were 51,047.

Yes Bank August 2019 futures traded at a premium of 1.05 points at 79.55 compared with spot closing of 78.50. The numbers of contracts traded were 44,068.

Reliance Industries August 2019 futures traded at a premium of 3.20 points at 1281.70 compared with spot closing of 1278.50. The numbers of contracts traded were 27,775.

HDFC Bank August 2019 futures traded at a premium of 6.50 points at 2230.45 compared with spot closing of 2223.95. The numbers of contracts traded were 20,932.

State Bank of India August 2019 futures traded at a premium of 1.00 points at 291.30 compared with spot closing of 290.30. The numbers of contracts traded were 20,273.

Among, Nifty calls, 11,200 SP from the August month expiry was the most active call with an addition of 0.17 million open interests. Among Nifty puts, 11000 from the August month expiry was the most active put with an addition of 0.19 million open interests. The maximum OI outstanding for Calls was at 11000 SP (2.49 mn) and that for Puts was at 11,000 SP (3.88 mn). The respective Support and Resistance levels of Nifty are: Resistance  11,102.87--Pivot Point  11,013.58--Support--10,958.52.

The Nifty Put Call Ratio (PCR) finally stood at 1.17 for August month contract. The top five scrips with highest PCR on Asian Paints (1.49), Hindustan Unilever (1.46), Century Textile and Industries (1.40),Godrej Consumer Products(1.30), Hindustan Zinc (1.27).

Among most active underlying, Reliance Industries witnessed an addition of 0.56 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing an addition of 0.75 million units of Open Interest in the August month contract, Indiabulls Housing Finance witnessed an addition of 1.33 million units of Open Interest in the August month contract, Maruti Suzuki India witnessed a contraction of 0.03 million units of Open Interest in the August month contract and Housing Development Finance Corporation witnessed a contraction of 0.18 million units of Open Interest in the August month future contract.