The Nifty rollover according to provisional data stood at 57 percent which is less than 62 percent seen at the starting of June series and its 3-month average of 67 percent.
Bears gained control of D-Street from the word go on Thursday and pushed the index below its crucial support placed around 10,600 levels weighed down by fall in the rupee which touched an all-time low of Rs 69.09/USD earlier in trade today.
However, the index did manage to bounce back from its 100-day exponential moving average (EMA) placed at 10,571, but it is still down 1.3 percent on the expiry-to-expiry basis.
The S&P BSE Sensex did manage to defend its crucial psychological support placed at 35,000, helped by gains in telecom, select auto, as well as IT stocks. Banks, financial and OMC stocks led the decline.
The Nifty rollover according to provisional data stood at 57 percent which is less than 62 percent seen at the starting of June series and its 3-month average of 67 percent.
“Activity in the derivative market has been picking up in last 3-4 month and the same can be seen in increasing the Open interest. The market has been volatile during the month of Jun with a range of 10,550-10,890,” Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services told Moneycontrol.
“Major index Nifty is near its June month starting level of 10,750. Rollover activity has been low this month, people have already started taking 2019 election into consideration. Global cues will be the driving force for Indian market for the rest of the year,” he said.
The S&P BSE Sensex closed 179 points lower or 0.51 percent at 35,037 while the Nifty50 closed 82 points down at 10,589.
Analysts advise investors to remain short as Nifty broke below plenty of support level in June series. The index formed a bearish candle but at the same time, Supetrend indicator gave a sell signal on the daily charts.
The last time Supertrend indicator gave a sell signal the index touched a low of 10,418 before bouncing back towards 10,700 levels when it gave a buy signal.
Nifty & Nifty Bank which cut losses in Thursday’s trade closed the June series with losses of 1.4 percent and 2.4 percent respectively. The midcap index was the biggest loser among major indices, shed over 330 points in June series.
“Banks held up in trade today as well closing with losses of under half a percent for the session. FIIs continue to be net sellers; they are taking money out of both frontline and midcap stocks, this trend we see set to continue going forward,” Nikhil Kamath, Co-Founder, Zerodha told Moneycontrol.
“We would advocate staying short at the current juncture and hold a bearish outlook on the markets,” he said.
Sectorally, the S&P BSE Oil & Gas index closed 2.5 percent lower, followed by the S&P BSE Energy index which was down 2.2 percent, and the S&P BSE Realty index was down 2.07 percent.
The S&P BSE Midcap index closed 1.6 percent while the S&P BSE Smallcap index ended 1.5 percent down.
Top Sensex gainers include stocks like NTPC, M&M, Infosys, Kotak Mahindra Bank, HDFC Bank, Tata Steel, and Wipro.
Top Sensex losers include names like ICICI Bank, Tata Motors, Coal India, RIL, SBI, and Yes Bank.
Stocks in news:
M&M: Mahindra & Mahindra, India’s biggest tractor manufacturer, is aiming for a 50 percent market share in the domestic tractor market aided by the newly introduced brand Trakstar. The stock closed 1.78 percent higher.
ICICI Bank Ltd issued hundreds of letters of credit (LCs) to debt-ridden borrowers to help them avoid loan default, a whistleblower complaint claims according to a Mint report. The stock closed 2.7 percent lower.
OMCs came under pressure thanks to rising crude oil prices. Crude oil prices inched up again in afternoon after a correction as experts feel physical markets remained well supplied despite record demand and ongoing disruption from Libya to Canada and Venezuela. Brent crude futures were at $78.12 a barrel, up 0.64 percent from the last close.
IndiGo is offering flight tickets starting Rs 1,200 on domestic routes, according to its website. The IndiGo offer, applicable for travel between 11 July and 27 September, will close on 30 June. The stock closed 4.1% lower.
In other News/Global Update:
The rupee is off its intraday all-time low of 69.09 to the dollar, down 25 paise at 68.89 against the dollar.
Global markets traded lower as investors digested developments related to the US stance on foreign investment amid lingering trade concerns. China’s Shanghai Composite corrected for the fourth consecutive session, losing a percent while Japan’s Nikkei closed flat with a negative bias and South Korea’s Kospi fell 1.2 percent.
Among European stocks, Germany’s DAX was down 0.73 percent and France’s CAC 0.35 percent while Britain’s FTSE slipped 0.11 percent.
Brent crude futures were at $78.12 a barrel, up 0.64 percent from the last close, as the supply remained stable despite record demand and ongoing disruption.
