Nifty snaps three days winning streak

Snapping its three days winning streak, CNX Nifty closed in the negative territory as investors booked profit in metal and realty stocks tracking lacklustre global markets sentiment even as concerns about the Chinese economic slowdown continues to keep traders on the edge. Besides, depreciation in rupee too dampened the sentiments. On the global front, Asian market ended mostly in red as lower commodity prices on worries about China's slowing growth and a flat lead from Wall Street kept many investors in a defensive mode. Oil prices fell about 4 percent in early trade, pressured in part by comments from Iran's energy minister that he foresaw no change in OPEC's output strategy despite weakening demand.

Back home, after getting a cautious start, Indian benchmark nifty showed some strength in mid morning trade as investor were largely influenced with the monthly SBI Composite Index that has stated that the country's manufacturing sector growth improved in October largely driven by the manufacturing sector, but mining and electricity are still acting as a drag on the economic activity. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 898.23 crore on October 19, 2015. However, the key gauge suffered a setback in afternoon trades as sudden bouts of profit booking emerged in the local markets immediately after a somber European market opening. Sentiments remained subdued as Standard & Poor's maintained India's sovereign rating of lowest investment grade of 'BBB-minus' and a 'stable' outlook. The agency added it is unlikely to change country's rating this year or in 2016 based on its current set of forecasts. Furthermore, Reserve Bank Governor Raghuram Rajan said that the country cannot have a GDP growth of 9 per cent until it makes 'tremendous investments' and improves supply situation that boosts demand, but warned against populist policies. Though the index recovered from the lows of the day but could not succeed in minimizing the whole losses by the end of trading session. Traders were seen piling position in Power, IT and TECK stocks, while selling was witnessed in Metal, Oil & Gas and Realty sector stocks.

The top gainers from the F&O segment were Adani Power, Bajaj Finance and Hexaware Technologies. On the other hand, the top losers were Vedanta, Amtek Auto and Cairn India. In the index options segment, maximum OI was being seen in the 8200-8500 calls and 7800-8100 puts. In today's session, while the traders preferred to exit 8100 put, heavy buildup was seen in the 8200 put. On the other hand, traders exited from 8100 Call, while 8300 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.7% and reached 16.99. The 50-share CNX Nifty was down by 13.40 points or 0.16% to settle at 8,261.65.  Nifty October 2015 futures closed at 8253.90 on Tuesday at a discount of 7.75 points over spot closing of 8,261.65, while Nifty November 2015 futures ended at 8291.05 at a premium of 29.40 points over spot closing. Nifty October futures saw contraction of 0.34 million (mn) units, taking the total outstanding open interest (OI) to 19.58 million (mn) units. The near month derivatives contract will expire on October 29, 2015.  

From the most active contracts, SBI Bank October 2015 futures traded at discount of 0.40 points at 254.40 compared with spot closing of 254.80. The number of contracts traded were 19,980.  

Vedanta October 2015 futures traded at a premium of 0.10 points at 101.30 compared with spot closing of 101.20. The number of contracts traded were 15,552.    

Tata Steel October 2015 futures traded at a discount of 0.90 points at 239.55 compared with spot closing of 240.45. The number of contracts traded were 19,690.   

Axis Bank October 2015 futures traded at a discount of 0.45 points at 509.05 compared with spot closing of 509.50. The number of contracts traded were 18,796.  

Tata Motors October 2015 futures traded at a premium of 0.85 points at 383.10 compared with spot closing of 382.25. The number of contracts traded were 45,877.    

Among Nifty calls, 8300 SP from the October month expiry was the most active call with an addition of 0.27 million open interests.  Among Nifty puts, 8300 SP from the October month expiry was the most active put with an addition of 0.58 million open interests. The maximum OI outstanding for Calls was at 8300 SP (6.05 mn) and that for Puts was at 8000 SP (5.83 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8294.07--- Pivot Point 8261.63--- Support --- 8229.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.27 for October month contract.  The top five scrips with highest PCR on OI were Lupin (1.63), Federal Bank (1.49), ZEEL (1.34), Tata Motors (1.30) and Reliance Industries (1.13).   

Among most active underlying, Tata Motors witnessed a contraction of 0.07 million of Open Interest in the October month futures contract, followed by Infosys witnessing a contraction of 0.18 million of Open Interest in the October month contract; Reliance Industrieswitnessed a contraction of 1.13 million of Open Interest in the October month contract, Tata Consultancy Services witnessed a contraction of 0.03 million of Open Interest in the October month contract and Maruti Suzuki Indiawitnessed a contraction of 0.13 million units of Open Interest in the October month's future contract.