NSE gauge -- Nifty50 -- ended the day’s trade with around one percentage point cut as investors remained wary of an economic slowdown. Market made a cautious start and traded flat, as investors awaited the release of the minutes of the Reserve Bank of India’s (RBI’s) Monetary Policy meeting later in the day. Adding to the pessimism a private report stated that with the issue of higher tax surcharge proving to be a thorn, a lobby of FPIs has urged the government to use information on beneficiaries to identify them and spare broad-based entities. The Budget proposal to impose a higher tax surcharge - from 15% to 25% for incomes between Rs 2 crore and Rs 5 crore and from 15% to 37% for higher incomes - on non-corporate FPIs had rattled the market.
Selling got intensified in the last leg of the trade and local barometer ended the session at intraday low levels amid private report stating that India's economic growth is set to slow further in the April-June quarter of this year to 5.7 per cent amid contraction in consumption, weak investments and an under-performing service sector. Cautiousness also crept in with a private report that in a bid to achieve the fiscal deficit target, the government has cut down on its capital expenditure by 80% in February and March. The government is contributing to the slowdown rather than uplifting the corporate sector.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment were Nestle India, Biocon and Tata Elxsi. On the other hand, the top losers were Tata Motors, Indiabulls Housing Finance and Yes Bank. In the index option segment, maximum OI continues to be seen in the 10,900 11,200 calls and 10,900 11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.34 and reached 17.02.The 50 share Nifty was down by 98.30 points or 0.89% to settle at 10,918.70.
Nifty August 2019 futures closed at 10932.65 on Wednesday, at a premium of 13.95 points over spot closing of 10918.70, while Nifty September 2019 futures ended at 10974.60, at a premium of 55.90 points over spot closing. Nifty August futures saw an addition of 0.50 million (mn) units, taking the total outstanding open interest (OI) to 18.91 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 0.35 points at 65.40 compared with spot closing of 65.05. The numbers of contracts traded were 67,492.
Maruti Suzuki India August 2019 futures traded at a discount of 50.05 points at 6200.85 compared with spot closing of 6250.90. The numbers of contracts traded were 34,352.
Tata Motors August 2019 futures traded at a premium of 0.40 points at 112.40 compared with spot closing of 112.00. The numbers of contracts traded were 32,421.
Indiabulls Housing Finance August 2019 futures traded at a premium of 3.95 points at 478.75 compared with spot closing of 474.80. The numbers of contracts traded were 30,953.
State Bank of India August 2019 futures traded at a premium of 1.05 points at 277.85 compared with spot closing of 276.80. The numbers of contracts traded were 21,074.
Among, Nifty calls, 11,000 SP from the August month expiry was the most active call with an addition of 0.72 million open interests. Among Nifty puts, 11000 from the August month expiry was the most active put with a contraction of 0.29 million open interests. The maximum OI outstanding for Calls was at 11000 SP (3.33 mn) and that for Puts was at 11,000 SP (3.53 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,999.72--Pivot Point 10,953.18--Support--10,872.17.
The Nifty Put Call Ratio (PCR) finally stood at 1.03 for August month contract. The top five scrips with highest PCR on Oracle Financial Services Software (2.00), Hindustan Unilever (1.60), Asian Paints (1.53), Berger Paints India (1.21) and Godrej Consumer Products(1.21).
Among most active underlying, State Bank of India witnessed a contraction of 0.01 million units of Open Interest in the August month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.04 million units of Open Interest in the August month contract, Reliance Industries witnessed a contraction of 1.50 million units of Open Interest in the August month contract, Tata Motors witnessed an addition of 4.39 million units of Open Interest in the August month contract and Housing Development Finance Corporation witnessed a contraction of 2.08 million units of Open Interest in the August month future contract.
