Despite positive global cues and healthy domestic macro-economic data, the local equity benchmark -- Nifty -- gave up its initial gains to end flat on Tuesday with positive bias. Indias core sector growth accelerated to 5% in March 2017, on the back of a sustained growth in the steel and coal output, supported by a stable rise in natural gas production. Besides, Indias manufacturing sector growth improved for the fourth consecutive month in April. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers Index (PMI)-a composite single-figure indicator of manufacturing performance- remained at 52.5 in April to match Marchs reading. Investors remained cautious ahead of the two-day US Federal Open Market Committee meet scheduled to start later in the evening. Some concerns also came with the FICCIs survey report that the protectionist trends gaining strength in the developed world could have an adverse impact on Indias export performance. However, Prime Minister Narendra Modi`s assertion that India was never a more promising investment destination than it is today, helped the index to end slightly positive. He further said that today, Indian economy is the fastest growing major economy in the world. In addition to maintaining this pace, our focus is to remove the inefficiencies from the system.
Traders were seen piling up positions in Realty, Media and IT stocks, while selling was witnessed in Metal, Pharma and PSU stocks. The top gainers from the F&O segment were Can Fin Homes, DCB Bank and CEAT. On the other hand, the top losers were JSW Energy, Ujjivan Financial Services and Bank of India. In the index option segment, maximum OI continues to be seen in the 9200-9700 calls and 8500-9300 puts indicating this is the trading range expectation.
The India Volatility Index (VIX), a gauge for markets short term expectation of volatility increased by 5.41% and reached 11.45. The 50-share Nifty was up by 9.75 points or 0.10% to settle at 9,313.80.
Nifty May 2017 futures closed at 9339.30 on Tuesday at a premium of 25.50 points over spot closing of 9313.80, while Nifty June 2017 futures ended at 9335.90, at a premium of 22.10 points over spot closing. Nifty May futures saw a contraction of 2.32 thousand 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, Dewan Housing Finance Corporation May 2017 futures traded at a premium of 2 points at 449.85 compared with spot closing of 447.85. The numbers of contracts traded were 15,618.
Reliance Infrastructure May 2017 futures traded at a premium of 3.80 points at 608.00 compared with spot closing of 604.20. The numbers of contracts traded were 13,998.
The Federal Bank May 2017 futures traded at a premium of 0.70 points at 113.00 compared with spot closing of 112.30. The numbers of contracts traded were 13,944.
Reliance Industries May 2017 futures traded at a premium of 6.15 points at 1378.15 compared with spot closing of 1372.00. The numbers of contracts traded were 13,895.
Maruti Suzuki India May 2017 futures traded at a premium of 26.15 points at 6716.15 compared with spot closing of 6,690.00. The numbers of contracts traded were 13,773.
Among Nifty calls, 9400 SP from the May month expiry was the most active call with an addition of 0.25 million open interests. Among Nifty puts, 9300 SP from the May month expiry was the most active put with an addition of 0.59 million open interests. The maximum OI outstanding for Calls was at 9500 SP (4.77 mn) and that for Puts was at 9000 SP (4.62 mn). The respective Support and Resistance levels of Nifty are: Resistance 9354.27--- Pivot Point 9312.08--- Support --- 9271.62.
The Nifty Put Call Ratio (PCR) finally stood at 1.06 for May month contract. The top five scrips with highest PCR on OI were Infibeam Incorporation (4.10), MRF (2.00), Fortis Healthcare (1.36), Ajanta Pharma (1.20) and Torrent Power (1.19)
Among most active underlying, Maruti Suzuki India witnessed an addition of 0.03 million units of Open Interest in the May month futures contract, followed by The Federal Bank witnessing a contraction of 2.06 million units of Open Interest in the May month contract, Reliance Industries witnessed an addition of 0.76 million units of Open Interest in the May month contract, State Bank of India witnessed a contraction of 0.91 million units of Open Interest in the May month future contract and Tata Steel witnessed an addition of 1.46 million units of Open Interest in the May month future contract.