Nifty closes in negative territory

The local benchmark -- Nifty -- ended the session lower on Wednesday, as investors took cues from the negative trend seen in European and Asian markets. The index traded on a lackluster note throughout day with the government’s statement that names of over 2.09 lakh firms have been struck off from register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts. Some concerns also came with former RBI Governor Raghuram Rajan’s statement that the biggest challenge is cleaning up the balance sheets of public sector banks. However, market trimmed some of its losses in noon deals with the new Commerce and Industry Minister Suresh Prabhu’s statement that the Ministry will soon bring out a policy framework for facilitating access to global markets for the Indian agriculture produce. Meanwhile, External Affairs Minister Sushma Swaraj expressed need for enhancing trade, commerce and investment with the Russian Far East to achieve the target of 30 billion US Dollars, set for bilateral trade, by the year 2025.

Traders were seen piling up positions in Realty, Metal and Media stocks, while selling was witnessed in Pharma, IT and FMCG stocks. The top gainers from the F&O segment were Muthoot Finance, Indo Count Industries and Tata Global Beverages.  On the other hand, the top losers were Divi's Laboratories, Sun Pharmaceutical Industries and Idea Cellular. In the index option segment, maximum OI continues to be seen in the 9800-10500 calls and 9400-10000 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.80% and reached 13.12. The 50-share Nifty was down by 36.00 points or 0.36% to settle at 9,916.20.

Nifty September 2017 futures closed at 9935.35 on Wednesday at a premium of 19.15 points over spot closing of 9916.20, while Nifty October 2017 futures ended at 9966.00 at a premium of 49.80 points over spot closing. Nifty September futures saw an addition of 0.86 million (mn) units, taking the total outstanding open interest (OI) to 19.02 mn units. The near month derivatives contract will expire on September 28, 2017.

From the most active contracts, Reliance Industries September 2017 futures traded at a premium of 2.95 points at 1646.95 compared with spot closing of 1644.00. The numbers of contracts traded were 33,548.

Bajaj Finance September 2017 futures traded at a premium of 1.40 points at 1861.10 compared with spot closing of 1859.70. The numbers of contracts traded were 20,324.

Bharat Financial Inclusion September 2017 futures traded at a premium of 6.95 points at 955.95 compared with spot closing of 949.00. The numbers of contracts traded were 19,986.

Dewan Housing Finance Corporation September 2017 futures traded at a premium of 4.00 points at 558.40 compared with spot closing of 554.40. The numbers of contracts traded were 15,776.

Tata Global Beverages September 2017 futures traded at a premium of 0.35 points at 206.85 compared with spot closing of 206.50. The numbers of contracts traded were 13,945.

Among Nifty calls, 10000 SP from the September month expiry was the most active call with an addition of 0.15 million open interests. Among Nifty puts, 9900 SP from the September month expiry was the most active put with an addition of 0.02 million open interests. The maximum OI outstanding for Calls was at 10000 SP (4.32 mn) and that for Puts was at 9700 SP (4.68 mn). The respective Support and Resistance levels of Nifty are: Resistance 9937.65--- Pivot Point 9910.10--- Support --- 9888.65.

The Nifty Put Call Ratio (PCR) finally stood at 1.10 for September month contract. The top five scrips with highest PCR on OI were KPIT Technologies (2.73), Indiabulls Real Estate (2.25), InterGlobe Aviation (1.23), JSW Energy (1.09) and Container Corporation of India (1.09).
 
Among most active underlying, Reliance Industries witnessed an addition of 2.88 million units of Open Interest in the September month futures contract, followed by Reliance Capital witnessing an addition of 0.73 million units of Open Interest in the September month contract, Bharat Financial Inclusion witnessed an addition of 0.43 million units of Open Interest in the September month contract, Bajaj Finance witnessed a contraction  of  0.01 million units of Open Interest in the September month contract and Maruti Suzuki India witnessed an addition of 0.04 million units of Open Interest in the September month future contract.