Nifty ends near intraday high; metal stocks rally

Indian equity benchmark Nifty ended last trading day of the week near intraday high, logging gains of over 0.90 per cent. The market sentiments remained buoyant throughout the day, with taking support from Commerce and Industry Minister Suresh Prabhu’s statement that he is working together with the finance ministry and other departments to firm up policy initiatives along with fiscal incentives. Traders also took some comfort from World Bank President Jim Yong Kim’s statement that the recent slowdown in India's economic growth is an ‘aberration’ caused by temporary disruptions in preparation for the Goods and Service Tax (GST) and asserted that it will get corrected in the near future. He said that GST is going to have a positive impact on the Indian economy. Adding to the optimism, Union Minister Smriti Irani said that foreign direct investment into the country's textile sector has gone up three times in the last one-and-a-half to two years, resonating the confidence of foreign investors in the industry. Furthermore, firm global cues, following the overnight gains on Wall Street, too helped the index to hold its rally for the day.

All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment were The South Indian Bank, Granules India and GAIL (India).  On the other hand, the top losers were Indiabulls Real Estate, Dewan Housing Finance Corporation and Strides Shasun. 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 decreased by 5.06% and reached 11.11. The 50-share Nifty was up by 91.00 points or 0.92% to settle at 9,979.70.

Nifty October 2017 futures closed at 10003.40 on Friday at a premium of 23.70 points over spot closing of 9979.70, while Nifty November 2017 futures ended at 10031.95 at a premium of 52.25 points over spot closing. Nifty October futures saw a contraction of 0.008 million (mn) units, taking the total outstanding open interest (OI) to 23.35 mn units. The near month derivatives contract will expire on October 26, 2017.

From the most active contracts, Tata Steel October 2017 futures traded at a premium of 1.10 point at 694.65 compared with spot closing of 693.55. The numbers of contracts traded were 22,352.

Sun Pharmaceutical Industries October 2017 futures traded at a premium of 0.95 points at 533.00 compared with spot closing of 532.05. The numbers of contracts traded were 16,277.

Jubilant Foodworks October 2017 futures traded at a premium of 4.40 points at 1549.45 compared with spot closing of 1,545.05. The numbers of contracts traded were 13,234.

Infosys October 2017 futures traded at a premium of 1.65 points at 922.15 compared with spot closing of 920.50. The numbers of contracts traded were 12,519.

Reliance Capital October 2017 futures traded at a premium of 3.25 points at 555.65 compared with spot closing of 552.40. The numbers of contracts traded were 11,751.

Among Nifty calls, 10000 SP from the October month expiry was the most active call with a contraction of 0.69 million open interests. Among Nifty puts, 9,900 SP from the October month expiry was the most active put with an addition of 1.14 million open interests.  The maximum OI outstanding for Calls was at 10000 SP (4.08 mn) and that for Puts was at 9800 SP (5.36 mn). The respective Support and Resistance levels of Nifty are: Resistance 10010.50--- Pivot Point 9958.55--- Support --- 9927.75.

The Nifty Put Call Ratio (PCR) finally stood at 1.11 for October month contract. The top five scrips with highest PCR on OI were Cholamandalam Investment and Finance Company (7.19), Torrent Pharmaceuticals (5.05), Ramco Cements (2.77), BOSCH (2.00) and Kajaria Ceramics (1.98).
 
Among most active underlying, Tata Steel witnessed an addition of 2.60 million units of Open Interest in the October month futures contract, followed by State Bank of India witnessing a contraction of 1.21 million units of Open Interest in the October month contract, Reliance Industries  witnessed a contraction of 0.73 million units of Open Interest in the October month contract, Vedanta witnessed an addition of  1.09 million units of Open Interest in the October month contract and Reliance Capital  witnessed an addition of 1.08 million units of Open Interest in the October month future contract.