Snapping three days winning streak, NSE gauge -- Nifty50 -- ended Wednesday’s choppy trade in red amid weak global cues. Nifty ended below its 11,950 mark as investors remained cautious ahead of the release of inflation and factory output numbers. It was a negative start to the market, as traders remained concerned with former Chief Economic Advisor Arvind Subramanian’s statement that country’s growth has been overestimated by nearly 2.5 per cent under both UPA and NDA rule. The actual growth is likely to be lower, at nearly 4.5 per cent, down from 7 per cent between 2011-12 and 2016-17.
However, some losses got trimmed as the market witnessed some buying in fag-end trading, as some optimism remained among the investors with the Reserve Bank of India’s (RBI) statement that it will infuse Rs 15,000 crore into the financial system through bond purchases on June 13. Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of (six) Government securities under OMOs through multi-security auction using the multiple price method. Investors took a note of FICCI President Sandip Somany made a case for the creation of a separate ministry for employment to effectively coordinate efforts to generate jobs, terming it one of the key challenges for the new government.
All sectoral indices ended in red on NSE except Metal and FMCG. The top gainers from the F&O segment were Motherson Sumi Systems, Dewan Housing Finance Corporation and United Spirits. On the other hand, the top losers were Indiabulls Housing Finance, Suzlon Energy and Reliance Capital. In the index option segment, maximum OI continues to be seen in the 12,400-12,600 calls and 11,200-11,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.54% and reached 14.12. The 50-share Nifty was down by 59.40 points or 0.50% to settle at 11,906.20.
Nifty June 2019 futures closed at 11916.70 on Wednesday, at a premium of 10.50 points over spot closing of 11906.20, while Nifty July 2019 futures ended at 11954.30, at a premium of 48.10 points over spot closing. Nifty June futures saw a contraction of 0.66 million (mn) units, taking the total outstanding open interest (OI) to 18.48 mn units. The near month derivatives contract will expire on June 27, 2019.
From the most active contracts, Indiabulls Housing Finance June 2019 futures traded at a premium of 3.05 points at 624.45 compared with spot closing of 621.40. The numbers of contracts traded were 68,587.
Yes Bank June 2019 futures traded at a discount of 0.25 points at 134.85 compared with spot closing of 135.10. The numbers of contracts traded were 33,937.
Tata Steel June 2019 futures traded at a premium of 2.05 points at 507.85 compared with spot closing of 505.80. The numbers of contracts traded were 19,307.
Reliance Industries June 2019 futures traded at a premium of 0.25 points at 1333.45 compared with spot closing of 1333.20. The numbers of contracts traded were 17,703.
IndusInd Bank June 2019 futures traded at a premium of 0.70 points at 1566.70 compared with spot closing of 1566.00. The numbers of contracts traded were 14,790.
Among Nifty calls, 12,000 SP from the June month expiry was the most active call with an addition of 0.29 million open interests. Among Nifty puts, 11,900 from the June month expiry was the most active put with a contraction of 0.04 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (2.23 mn) and that for Puts was at 11,500 SP (2.70 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,956.98 -- Pivot Point 11,911.67 -- Support -- 11,860.88.
The Nifty Put Call Ratio (PCR) finally stood at 1.32 for June month contract. The top five scrips with highest PCR on OI were Bosch (1.67), TCS (1.63), Colgate-Palmolive (1.59), MRPL (1.44) and Birlasoft (1.23).
Among most active underlying, Indiabulls Housing Finance witnessed an addition of 1.68 million units of Open Interest in the June month futures contract, followed by Reliance Industries witnessing a contraction of 0.18 million units of Open Interest in the June month contract, State Bank of India witnessed an addition of 0.46 million units of Open Interest in the June month contract, Tata Steel witnessed an addition of 0.87 million units of Open Interest in the June month contract and Tata Consultancy Services witnessed a contraction of 0.04 million units of Open Interest in the June month future contract.