Nifty end lower on profit booking

Indian benchmark -- Nifty -- finished the session in negative territory on Wednesday, as traders opted to book profit after yesterday’s huge rally.  After a positive opening, Indian market slipped into red terrain and traded in a tight band, as sentiments remained under pressure with minutes of the Reserve Bank of India’s maiden monetary policy committee (MPC) meeting, released on Tuesday, whereby the rate panel eyed growth concerns. The minutes showed that broad concerns over economic growth and relief from the pullback in inflation, spurred the bank’s recent rate cut decision. Market extended losses in late afternoon session and touched intraday low, as investors remained on sidelines ahead of the ongoing government meet on the goods and services tax (GST) for clarity on new rates. The crucial GST Council meeting, comprising federal and state finance ministers, will decide the main tax rate and those for different sectors. In last leg, Nifty recover from its day’s low to end the session below its neutral line with a cut of over a ten points, as investors got some confidence with Steel Minister Chaudhary Birender Singh’s statement that India is seen as the sole bright spot in a troubled global economy. Confident that 'Make in India' will transform the nation into a manufacturing powerhouse, Minister has also said that nearly $26 billion has flowed into the country this year so far since we opened the floodgates for FDI across sectors.

On the global front, European stocks were trading lower, as investors became more cautious ahead of the European Central Bank’s upcoming policy meeting on Thursday. Asian markets ended mostly in green on Wednesday, as investors’ sentiment got boost after data out of China showed Asia’s largest economy remained stable in the third quarter and also on speculation the Federal Reserve will stick to a gradual tightening of monetary policy.

The top gainers from the F&O segment were Idea Cellular, Tata Chemicals and NMDC. On the other hand, the top losers were Havells India, Petronet LNG and Apollo Tyres. In the index options segment, maximum OI was being seen in the 8600-9000 calls and 8500-8700 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility addition by 0.52% and reached 14.61. The 50-share Nifty was down by 18.80 points or 0.22% to settle at 8,659.10

Nifty October 2016 futures closed at 8665.25 on Wednesday at a premium of 6.15 points over spot closing of 8,659.10, while Nifty November 2016 futures ended at 8705.30 at a premium of 46.20 points over spot closing. Nifty October futures saw contraction of 0.45 million (mn) units, taking the total outstanding open interest (OI) to 17.97 million (mn) units. The near month derivatives contract will expire on October 27, 2016.

From the most active contracts, ICICI Bank October 2016 futures traded at a premium of 0.75 points at 265.90 compared with spot closing of 265.15. The numbers of contracts traded were 16,118.

BHEL October 2016 futures traded at a premium of 1.05 points at 141.80 compared with spot closing of 140.75. The numbers of contracts traded were 11,431.

Axis Bank October 2016 futures traded at a premium of 0.60 points at 535.70 compared with spot closing of 535.10. The numbers of contracts traded were 18,694.

HDFC Bank October 2016 futures traded at a premium of 2.65 points at 1260.30 compared with spot closing of 1,257.65. The numbers of contracts traded were 10,876.   

Tata Motors October 2016 futures traded at a premium of 0.60 points at 550.50 compared with spot closing of 549.90. The numbers of contracts traded were 9,277.   

Among Nifty calls, 8700 SP from the October month expiry was the most active call with a addition of 0.14 million open interests. Among Nifty puts, 8600 SP from the October month expiry was the most active put with an addition of 0.32 million open interests. The maximum OI outstanding for Calls was at 9000 SP (6.33 mn) and that for Puts was at 8500 SP (4.93 mn). The respective Support and Resistance levels of Nifty are: Resistance 8693.00--- Pivot Point 8664.85--- Support --- 8630.95.             

The Nifty Put Call Ratio (PCR) finally stood at 0.95 for October month contract. The top five scrips with highest PCR on OI were OFSS (2.00), APOLLOHOSP (1.51), LT (1.43), DHFL (1.15) and ICICIBANK  (1.04).   

Among most active underlying Yes Bank witnessed an addition of 0.03 million of Open Interest in the October month futures contract, followed ICICI Bank witnessing an contraction of 3.86 million of Open Interest in the October month contract, Axis Bank witnessed a contraction of 1.16 million of Open Interest in the October month contract, Reliance Industries witnessed an contraction of 1.08 million of Open Interest in the October month contract and Tata Steel witnessed an contraction  of 0.75 million units of Open Interest in the October month's future contract.