NSE gauge -- Nifty50 -- ended the day’s trade with a gain over two percent amid Finance Ministry announcing measures to boost the economy on Friday evening post-market hours. Market made optimistic start with the report that Finance Minister Nirmala Sitharaman has said the India's Gross Domestic Product (GDP) continues to grow at a faster pace than the global economy and any other major economy. But, market pared all of its gains to enter into red, as some cautiousness came with report Moody's Investors Service revised downwards India's GDP growth forecast for the current year to 6.2%, saying the economy remains sluggish due to a combination of factors such as weak hiring, distress among rural households and tighter financial conditions. The GDP growth forecast for 2019 calendar year was revised downwards from its previous estimation of 6.8%. The same for 2020 was also lowered by a similar 0.6 percentage points to 6.7%.
Market witnessed recovery in later part of the trade to bounce back in green, taking support from report that the Reserve Bank of India (RBI) Governor Shaktikanta Das said that the RBI will continue to unlock entrepreneurial energies and set the country firmly on track to become $5 trillion economy in the next five years. Market extended gains to settle above its crucial 11,050 mark, as former president Pranab Mukherjee said the government’s ambitious target of becoming a $ 5 trillion economy by 2024-25 is possible through prudent fiscal management.
All the NSE sectoral indices ended in green, except Metal. The top gainers from the F&O segment were IDBI Bank, Reliance Infrastructure and Dewan Housing Finance Corporation. On the other hand, the top losers were JSW Steel, Vodafone Idea and Vedanta. 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 decreased by 3.99% and reached 16.65.The 50 share Nifty was up by 228.50 points or 2.11% to settle at 11,057.85.
Nifty August 2019 futures closed at 11054.20 on Monday, at a discount of 3.65 points over spot closing of 11057.85, while Nifty September 2019 futures ended at 11091.10, at a premium of 33.25 points over spot closing. Nifty August futures saw a contraction of 1.12 million (mn) units, taking the total outstanding open interest (OI) to 17.00 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 0.90 points at 63.15 compared with spot closing of 62.25. The numbers of contracts traded were 83,201.
State Bank of India August 2019 futures traded at a premium of 0.10 points at 279.65 compared with spot closing of 279.55. The numbers of contracts traded were 48,360.
HDFC Bank August 2019 futures traded at a discount of 6.45 points at 2252.55 compared with spot closing of 2259.00. The numbers of contracts traded were 47,718.
ICICI Bank August 2019 futures traded at a discount of 2.55 points at 410.70 compared with spot closing of 413.25. The numbers of contracts traded were 41,695.
Reliance Industries August 2019 futures traded at a premium of 2.35 points at 1267.35 compared with spot closing of 1265.00. The numbers of contracts traded were 36,946.
Among, Nifty calls, 11,000 SP from the August month expiry was the most active call with a contraction of 1.45 million open interests. Among Nifty puts, 10,800 from the August month expiry was the most active put with a addition of 0.71 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.15 mn) and that for Puts was at 11,000 SP (3.45 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,166.58--Pivot Point 10,961.57--Support--10,852.83.
The Nifty Put Call Ratio (PCR) finally stood at 1.09 for August month contract. The top five scrips with highest PCR on Asian Paints (1.43), Berger Paints India (1.36), Hindustan Unilever (1.26), Kotak Mahindra Bank (1.17) and Siemens (1.16).
Among most active underlying, State Bank of India witnessed a contraction of 16.59 million units of Open Interest in the August month futures contract, followed by Reliance Industries witnessing a contraction of 3.73 million units of Open Interest in the August month contract, HDFC Bank witnessed a contraction of 2.54 million units of Open Interest in the August month contract, Housing Development Finance Corporation witnessed a contraction of 2.79 million units of Open Interest in the August month contract and Maruti Suzuki India witnessed a contraction of 0.29 million units of Open Interest in the August month future contract.
