The local equity benchmark -- Nifty -- ended in red on Friday for the second consecutive session as investors continued to book profits in recent outperformers ahead of a long weekend and next week`s FOMC meeting, although no change in rates is expected at the meeting. The local markets will be closed on Monday for a public holiday. Sentiments remained downbeat with the report that private equity investments in the first quarter of this year fell to nearly 3-year low of $2.1 billion in the absence of big ticket deals. The report stated that there was a decline, both in terms of value as well as volume of deals and PE investment values dropped to the lowest level in the last 11 quarters. Some concern also came with the private report that retail loans grew at a healthy 17.7 percent in 2016, but there was an increase in dud loans in the segment which has become a focus area for the lenders amid difficulties to grow corporate books. Traders shrugged off the International Monetary Funds (IMF) report that the adoption of the landmark goods and services tax (GST) from July 1 will help to raise Indias medium-term gross domestic product (GDP) growth to over 8 percent as it will create a single national market for enhancing the efficiency of the movement of goods and services across Indian states. Traders also failed to get any sense of relief even after Niti Aayog exuded confidence that India will get back to over 8 percent growth in another 2-3 years.
Traders were seen piling up positions in PSU, Metal and Auto stocks, while selling was witnessed in Realty, FMCG and IT stocks. The top gainers from the F&O segment were The Federal Bank, IFCI and Syndicate Bank. On the other hand, the top losers were Ujjivan Financial Services, Adani Enterprises and Infibeam Incorporation. In the index option segment, maximum OI continues to be seen in the 9200-9700 calls and 8700-9300 puts indicating this is the trading range expectation.
The India Volatility Index (VIX), a gauge for markets short term expectation of volatility decreased by 1.90% and reached 10.86. The 50-share Nifty was down by 38.10 points or 0.41% to settle at 9,304.05.
Nifty May 2017 futures closed at 9333.70 on Friday at a premium of 29.65 points over spot closing of 9304.05, while Nifty June 2017 futures ended at 9330.90, at a premium of 26.85 points over spot closing. Nifty May futures saw a contraction of 0.48 million (mn) units, taking the total outstanding open interest (OI) to 19.29 million (mn) units. The near month derivatives contract will expire on May 25, 2017.
From the most active contracts, The Federal Bank May 2017 futures traded at a premium of 0.50 points at 108.40 compared with spot closing of 107.90. The numbers of contracts traded were 23,010.
Punjab National Bank May 2017 futures traded at a discount of 1.55 points at 167.20 compared with spot closing of 168.75. The numbers of contracts traded were 19,968.
Maruti Suzuki India May 2017 futures traded at a premium of 52.20 points at 6563.20 compared with spot closing of 6,511.00. The numbers of contracts traded were 19,616.
Bharat Financial Inclusion May 2017 futures traded at a premium of 6.45 points at 810.30 compared with spot closing of 803.85. The numbers of contracts traded were 19,378.
State Bank of India May 2017 futures traded at a premium of 1.95 points at 291.35 compared with spot closing of 289.40. The numbers of contracts traded were 18,832.
Among Nifty calls, 9400 SP from the May month expiry was the most active call with an addition of 0.30 million open interests. Among Nifty puts, 9300 SP from the May month expiry was the most active put with an addition of 0.55 million open interests. The maximum OI outstanding for Calls was at 9500 SP (4.24 mn) and that for Puts was at 9000 SP (4.37mn). The respective Support and Resistance levels of Nifty are: Resistance 9337.05--- Pivot Point 9309.65--- Support --- 9276.65.
The Nifty Put Call Ratio (PCR) finally stood at 1.04 for May month contract. The top five scrips with highest PCR on OI were Infibeam Incorporation (4.32), Marico (1.89), Bajaj-Auto (1.54), Fortis Healthcare (1.35) and Bajaj Finance (1.30).
Among most active underlying, The Federal Bank witnessed an addition of 11.38 million units of Open Interest in the May month futures contract, followed by Maruti Suzuki India witnessing an addition of 0.15 million units of Open Interest in the May month contract, State Bank of India witnessed an addition of 1.45 million units of Open Interest in the May month contract, Reliance Capital witnessed an addition of 4.50 thousand units of Open Interest in the May month future contract and Reliance Industries witnessed an addition of 0.45 million units of Open Interest in the May month future contract.