Nifty end Wednesday’s trade with half a percent cut

28 Aug 2019 Evaluate

NSE gauge -- Nifty50 -- ended the day’s trade in negative terrain with cut of half of a percent. Markets made a cautious start, as investors remained cautious with Moody’s Investors Service’s statement that the economic measures announced by Finance Minister Nirmala Sitharaman are unlikely to provide some form of confidence and improve business sentiment and consumer sentiment. Moody's, which has lowered India’s gross domestic product (GDP) forecast to 6.4% for FY20, said there is significant uncertainty in terms of the growth prospects both because of domestic as well as external factors. Cautiousness also crept in with a private report indicating that India's economic growth momentum is expected to slip further as there is no quick fix solution for the structural issues that the economy is facing.

Extending bears run for second half, markets ended with half a percent cut after India Ratings and Research (Ind-Ra) revised India's gross domestic product (GDP) growth in current financial year downwards to 6.7 per cent -- marking a six-year low -- from its earlier forecast of 7.3 per cent. Sentiments remained deeply negative with the agency expects FY20 to be the third consecutive year of subdued growth pushed by a slowdown in consumption demand, delayed and uneven progress of monsoon so far, decline in manufacturing growth, inability of Insolvency and Bankruptcy Code to resolve cases in a time-bound manner and rising global trade tension adversely impacting exports.

All the NSE sectoral indices ended in red, except IT, Media and Realty. The top gainers from the F&O segment were Tata Global Beverages, ICICI Prudential Life Insurance Company and NIIT Technologies. On the other hand, the top losers were RBL Bank, IDBI Bank and Jindal Steel &Power. 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 increased by 5.15 and reached 16.83.The 50 share Nifty was down by 59.25 points or 0.53% to settle at 11,046.10.

Among, Nifty calls, 11,100 SP from the August month expiry was the most active call with an addition of 1.41 million open interests. Among Nifty puts, 11,000 from the August month expiry was the most active put with a contraction of 0.39 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (4.65 mn) and that for Puts was at 11,000 SP (3.94 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,121.28--Pivot Point 11,054.47--Support--10,979.28.

The Nifty Put Call Ratio (PCR) finally stood at 0.90 for August month contract. The top five scrips with highest PCR on Berger Paints India (1.52), Siemens (1.40), Asian Paints (1.39), Bharat Petroleum Corp (1.36) and Titan Company (1.22).

Among most active underlying, Reliance Industries witnessed an addition of 3.99 million units of Open Interest in the August month futures contract, followed by State Bank of India witnessing an addition of 0.95 million units of Open Interest in the August month contract, Maruti Suzuki India witnessed a contraction of 0.02 million units of Open Interest in the August month contract, Housing Development Finance Corporation witnessed an addition of 3.49 million units of Open Interest in the August month contract and HDFC Bank witnessed an addition of 1.50 million units of Open Interest in the August month future contract.

Nifty end Wednesday’s trade with half a percent cut

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