Nifty settles higher; reclaims 10K mark

The local benchmark -- Nifty -- settled the day on higher note on Tuesday, with reclaiming its psychological level of 10,000. The index traded in green territory throughout the day with RBI Governor Urjit Patel’s statement that the economy is recovering, after growth slowed to a three-year low of 5.7 percent in the April-June quarter. He added that the GDP growth will pick up in the third and fourth quarters (of the current fiscal year) to above 7 per cent. The market participants also took encouragement with Finance Minister Arun Jaitley’s statement that the GST transition has been fairly smooth for states as they are adopting it at a fast pace despite attempts to derail its implementation. The FM further expressed optimism about the country, saying that India is now becoming capable of taking big decisions and implementing them at a large-scale. However, upside remained capped as investors hedged their bets before corporate results kick in this week. Investors took note of data released by Reserve Bank of India (RBI) which indicates pessimism reigns among consumers and there is less hope for improvement in general economic conditions compared to last year.

All the sectoral indices ended in green on the NSE except FMCG and Realty. The top gainers from the F&O segment were Biocon, Suzlon Energy and NIIT Technologies. On the other hand, the top losers were The South Indian Bank, PC Jeweller and Reliance Capital. 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 2.45% and reached 11.11. The 50-share Nifty was up by 28.20 points or 0.28% to settle at 10,016.95.

Nifty October 2017 futures closed at 10035.70 on Tuesday at a premium of 18.75 points over spot closing of 10016.95, while Nifty November 2017 futures ended at 10067.40 at a premium of 50.45 points over spot closing. Nifty October futures saw an addition of 0.58 million (mn) units, taking the total outstanding open interest (OI) to 24.23 mn units. The near month derivatives contract will expire on October 26, 2017.

From the most active contracts, Infosys October 2017 futures traded at a premium of 2.15 point at 937.30 compared with spot closing of 935.15. The numbers of contracts traded were 19,732.

Biocon October 2017 futures traded at a premium of 1.25 points at 369.85 compared with spot closing of 368.60. The numbers of contracts traded were 14,310.

Reliance Industries October 2017 futures traded at a premium of 2.70 points at 844.95 compared with spot closing of 842.25. The numbers of contracts traded were 13,044.

Tata Steel October 2017 futures traded at a premium of 2.70 points at 694.20 compared with spot closing of 691.50. The numbers of contracts traded were 12,465.

Lupin October 2017 futures traded at a premium of 0.85 points at 1063.85 compared with spot closing of 1063.00. The numbers of contracts traded were 10,549.

Among Nifty calls, 10100 SP from the October month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 10000 SP from the October month expiry was the most active put with an addition of 0.60 million open interests.  The maximum OI outstanding for Calls was at 10000 SP (4.55 mn) and that for Puts was at 9800 SP (5.83 mn). The respective Support and Resistance levels of Nifty are: Resistance 10033.20--- Pivot Point 10017.75--- Support --- 10001.50.

The Nifty Put Call Ratio (PCR) finally stood at 1.15 for October month contract. The top five scrips with highest PCR on OI were Cholamandalam Investment and Finance Company (7.19), Torrent Pharmaceuticals (4.17), Ramco Cements (2.94), BOSCH (2.00) and Kajaria Ceramics (1.98).
 
Among most active underlying, Tata Steel witnessed an addition of 0.95 million units of Open Interest in the October month futures contract, followed by Reliance Industries witnessing an addition of 0.22 million units of Open Interest in the October month contract, Infosys witnessed an addition of 1.20 million units of Open Interest in the October month contract, Biocon witnessed an addition of  0.58 million units of Open Interest in the October month contract and Vedanta witnessed an addition of 3.46 million units of Open Interest in the October month future contract.