Nifty extend gains for third straight session

Extending bull run for third straight session, NSE gauge -- Nifty50 -- ended Tuesday’s trade above its crucial 11,100 level on Tuesday. Market made positive start with the report that Chief Economic Advisor Krishnamurthy Subramanian’s statement that the ongoing trade war between the United States of America and China will not have any impact on Indian export which is just below 2 per cent of the global trade. Local investors also cheered report that Reserve Bank of India (RBI) decided to transfer a record Rs 1,23,414 crore of its surplus to the central government for the fiscal year 2018-19 or FY19 (July to June), and an additional Rs 52,637 crore of excess provisions as recommended by the Bimal Jalan committee on Economic Capital Framework (ECF).

Market continued to trade in green in second half of the trade as traders took support from report that Prime Minister Narendra Modi informed President Donald Trump that India plans to further step up imports, including oil, from the US and that $4 billion worth of imports were already ‘in the pipeline’, as the two countries sought to overcome their differences on tariffs and market access. Traders shrugged off report that Ficci Economic Outlook Survey stated that India's economy will grow at a median rate of 6% during the Q1FY20. Also, it pegged the annual median GDP growth forecast for 2019-20 at 6.9%, with a minimum and maximum estimate of 6.7% and 7.2%, respectively.

All the NSE sectoral indices ended in green, except IT, Media and Pharma. The top gainers from the F&O segment were NBCC (India), Tata Motors and NCC. On the other hand, the top losers were Dish TV India, RBL Bank and Reliance Infrastructure. In the index option segment, maximum OI continues to be seen in the 11,100- 11,300 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 3.87% and reached 16.01.The 50 share Nifty was up by 47.50 points or 0.43% to settle at 11,105.35.

Nifty August 2019 futures closed at 11103.90 on Tuesday, at a discount of 1.45 points over spot closing of 11105.35, while Nifty September 2019 futures ended at 11144.15, at a premium of 38.80 points over spot closing. Nifty August futures saw a contraction of 1.89 million (mn) units, taking the total outstanding open interest (OI) to 15.12 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 64.70 compared with spot closing of 64.95. The numbers of contracts traded were 53,007.

Reliance Industries August 2019 futures traded at a premium of 2.95 points at 1277.30 compared with spot closing of 1274.35. The numbers of contracts traded were 43,103.

HDFC Bank August 2019 futures traded at a discount of 2.20 points at 2255.80 compared with spot closing of 2258.00. The numbers of contracts traded were 40,753.

ICICI Bank August 2019 futures traded at a discount of 0.65 points at 417.75 compared with spot closing of 418.40. The numbers of contracts traded were 40,083.

State Bank of India August 2019 futures traded at a discount of 0.60 points at 285.25 compared with spot closing of 285.85. The numbers of contracts traded were 32,000.

Among, Nifty calls, 11,200 SP from the August month expiry was the most active call with an addition of 0.48 million open interests. Among Nifty puts, 11,000 from the August month expiry was the most active put with an addition of 0.88 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (3.49 mn) and that for Puts was at 11,000 SP (4.33 mn). The respective Support and Resistance levels of Nifty are: Resistance  11,148.23--Pivot Point  11,098.87--Support--11,055.98.

The Nifty Put Call Ratio (PCR) finally stood at 1.13 for August month contract. The top five scrips with highest PCR on Oracle Financial Services Software (2.00),Asian Paints (1.48), Berger Paints India (1.40),Siemens (1.34) and Godrej Consumer Products (1.32).

Among most active underlying, State Bank of India witnessed a contraction of 22.58 million units of Open Interest in the August month futures contract, followed by Reliance Industries witnessing a contraction of 8.23 million units of Open Interest in the August month contract, Housing Development Finance Corporation witnessed a contraction of 8.10 million units of Open Interest in the August month contract, Infosys witnessed a contraction of 21.54 million units of Open Interest in the August month contract and HDFC Bank witnessed a contraction of 4.41 million units of Open Interest in the August month future contract.