Indian local benchmark -- Nifty50 traded with negative bias throughout the day, on account of rise in crude prices caused by the drone attack on two of Saudi's Aramco facilities. Market made a gap down opening and continued its weak performance till the end of the session as commerce ministry’s data showing that India's exports dropped by 6.05 per cent to $26.13 billion in August compared to the year-ago month. Imports too declined by 13.45 per cent to $39.58 billion, narrowing trade deficit to $13.45 billion in August. However, market trimmed some of its losses in early noon session as finance minister Nirmala Sitharaman announced reforms to boost the export and housing sector in the country. She announced a slew of measures including a new attractive scheme to refund the duties and taxes on exports that will replace all existing schemes in a bid to stimulate exports and the economy. The revenue forgone is projected at upto Rs 50,000 crore.
However, market extended bear run till the end of the session with cut of over half a percent, as SBI report stating that the contemporary issue for macroeconomists is to exclusively focus on assuring adequate aggregate demand as the current slowdown cannot be tackled by monetary policy in isolation. A huge depreciation in the rupee against the US dollar too spooked investors.
Most of the NSE sectoral indices ended in red, except FMGC, IT and Pharma. The top gainers from the F&O segment Page Industries, Colgate Palmolive and Godrej Consumer Products. On the other hand, the top losers were Equitas Holdings, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 10,800 - 11,300 calls and 10,700 -10,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 5.90% and reached 14.95.The 50 share Nifty was down by 72.40 points or 0.65% to settle at 11,003.50.
Nifty September 2019 futures closed at 11017.20 on Monday, at a premium of 13.70 points over spot closing of 11003.50, while Nifty October 2019 futures ended at 11060.50, at a premium of 57.00 points over spot closing. Nifty September futures saw an addition of 0.77 million (mn) units, taking the total outstanding open interest (OI) to 17.55 mn units. The near month derivatives contract will expire on September 26, 2019.
From the most active contracts, Reliance Industries September 2019 futures traded at a premium of 3.50 points at 1214.30 compared with spot closing of 1210.80. The numbers of contracts traded were 42,766.
Yes Bank September 2019 futures traded flat 67.15 with spot closing of 67.15. The numbers of contracts traded were 28,932.
ICICI Bank September 2019 futures traded at a premium of 1.40 points at 412.75 compared with spot closing of 411.35. The numbers of contracts traded were 24,502.
Indiabulls Housing Finance September 2019 futures traded at a discount of 16.55 points at 415.15 compared with spot closing of 431.70. The numbers of contracts traded were 21,712.
State Bank of India September 2019 futures traded at a premium of 0.80 points at 285.15 compared with spot closing of 284.35. The numbers of contracts traded were 18,659.
Among, Nifty calls, 11,200 SP from the September month expiry was the most active call with an addition of 0.51 million open interests. Among Nifty puts, 11,000 from the September month expiry was the most active put with a contraction of 0.006 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (3.10 mn) and that for Puts was at 10,800 SP (3.06 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,048.07 ---- Pivot Point 11,008.13 --- Support --- 10,963.57.
The Nifty Put Call Ratio (PCR) finally stood at 1.06 for September month contract. The top five scrips with highest PCR on Shree Cement (2.25), Ramco Cements (1.75),Hindalco Industries (1.51),Muthoot Finance (1.27) and Bosch (1.15).
Among most active underlying, Reliance Industries witnessed a contraction of 5.62 million units of Open Interest in the September month futures contract, followed by State Bank of India witnessing a contraction of 0.62 million units of Open Interest in the September month contract, Housing Development Finance Corporation witnessed a contraction of 2.93 million units of Open Interest in the September month contract, Maruti Suzuki India witnessed a contraction of 0.03 million units of Open Interest in the September month contract and ICICI Bank witnessed a contraction of 3.35 million units of Open Interest in the September month future contract.
