Nifty continues bull run; surpasses 10,450 mark

Indian equity markets -- Nifty -- ended the day’s trade with health gains on Tuesday. Market made a positive start, as traders took support with Niti Aayog Vice Chairman Rajiv Kumar’s statement that India will transform into a middle-income country from a lower middle-income economy by 2030. Kumar also said that India will witness a recovery in investment cycle by April 2021 and beef up efforts on trade front as well.  Further, sentiment on the street started improving after Commerce and industry minister Piyush Goyal said that India's exports in the first two weeks of June have reached above 80% level of the same period last year and would be only 10-12% lower in the month compared to June 2019.

The index continued the gaining monument despite Moody's Investors Service has projected that the Indian economy to shrink 3.1% in 2020 and said clashes with China on the border also suggest rising geopolitical risks in the Asian region where countries are particularly vulnerable to changes in geopolitical dynamics. Market further added some more gains in the last leg of trade, as Fitch Ratings’ report that India is very likely to come out with another round of fiscal stimulus package, worth about 1 percent of Gross Domestic Product (GDP) in the coming months. And finally Nifty finished Tuesday’s trade near intraday high point.

All of the NSE sectoral indices ended in green. The top gainers from the F&O segment were The Bandhan Bank, Bajaj Finance and Just Dial. On the other hand, the top losers were Glenmark Pharmaceuticals, Muthoot Finance and Manappuram Finance. In the index option segment, maximum OI continues to be seen in the 10,300 - 10,700 calls and 9800 - 10200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 3.68% and reached 29.34. The 50 share Nifty up by 159.80 points or 1.55% to settle at 10,471.00.

Nifty June 2020 futures closed at 10480.00 (LTP) on Tuesday, at a premium of 9.00 points over spot closing of 10471.00 , while Nifty July 2020 futures ended at 10466.00 (LTP), at a discount of 5.00 points over spot closing. Nifty June futures saw an addition of 0.74 million (mn) units, taking the total outstanding open interest (OI) to 8.94 mn units. The near month derivatives contract will expire on June 25, 2020 (Provisional).

From the most active contracts, Indusind Bank June 2020 futures traded at a premium of 2.10 points at 524.00 (LTP) compared with spot closing of 521.90. The numbers of contracts traded were 78,760 (Provisional).

Bajaj Finance June 2020 futures traded at a discount of 31.95 points at 3072.05 (LTP) compared with spot closing of 3104.00. The numbers of contracts traded were 54,463 (Provisional).

Reliance Industries June 2020 futures traded at a premium of 5.40 points at 1727.10 (LTP) compared with spot closing of 1721.70. The numbers of contracts traded were 50,912 (Provisional).

HDFC Bank June 2020 futures traded at a premium of 0.80 points at 1045.80 (LTP) compared with spot closing of 1045.00. The numbers of contracts traded were 48,172 (Provisional).

ICICI Bank June 2020 futures traded at a premium of 0.55 points at 376.60 (LTP) compared with spot closing of 376.05. The numbers of contracts traded were 44,845 (Provisional).

Among, Nifty calls, 10500 SP from the June month expiry was the most active call with an addition of 0.49 million open interests. Among Nifty puts, 10300 SP from the June month expiry was the most active put with an addition of 1.23 million open interests. The maximum OI outstanding for Calls was at 10500 SP (4.06 mn) and that for Puts was at 10000 SP (4.85 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,536.55 -- Pivot Point 10,419.15 -- Support -- 10,353.60.

The Nifty Put Call Ratio (PCR) finally stood at (1.52) for June month contract. The top five scrips with highest PCR Bajaj Finance (1.74), Indiabulls Housing Finance (1.67), Adani Power (1.63), Hindalco Industries (1.55) and Jindal Steel & Power (1.37).

Among most active underlying, Reliance Industries witnessed an addition of 5.36 million units of Open Interest in the June month futures contract, followed by Bajaj Finance witnessing an addition of 0.72 million units of Open Interest in the June month contract, State Bank Of India witnessed a contraction of 14.94 million units of Open Interest in the June month contract, ICICI Bank witnessed an addition of 11.88 million units of Open Interest in the June month contract and Hindustan Unilever witnessed an addition of 3.72 million units of Open Interest in the June month future contract.