Nifty ends near intraday high

The local benchmark Nifty extended gains in last leg of trade to end near intraday high on Thursday, aided by positive global cues. The index traded on a firm note throughout the day with taking support from reports that the government’s revenue collection during April-September, the first half of fiscal year 2017-18 shown a healthy growth. For the period, direct tax collections stood at Rs 3.86 lakh crore, registering a growth of 15.8 percent over the same period last year. Traders took some encouragement with Finance Minister Arun Jaitley’s statement that an upward trajectory is being projected for growth from the current quarter and as far as growth figures are concerned in the next few years, it will keep on improving. Adding to the optimism, the Department of Economic Affairs Secretary, Subhash Chandra Garg said that India’s GDP might return to 7% plus growth by next year as all indicators point to an ‘economic turnaround’. Investors also got some comfort with report stating that the newly constituted Economic Advisory Council to the Prime Minister (EAC-PM) wants the government to stick to its fiscal consolidation road map and has suggested that stimulus to the industry should not be at the cost of fiscal prudence.

All the sectoral indices ended in green on the NSE except PSU Banking. The top gainers from the F&O segment were NBCC (India), Jindal Steel & Power and Hindalco Industries. On the other hand, the top losers were Bank of India, Jain Irrigation Systems and Petronet LNG.  In the index option segment, maximum OI continues to be seen in the 9800-10500 calls and 9400-10100 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 5.86% and reached 11.04. The 50-share Nifty was up by 111.60 points or 1.12% to settle at 10,096.40.

Nifty October 2017 futures closed at 10111.40 on Thursday at a premium of 15 points over spot closing of 10096.40, while Nifty November 2017 futures ended at 10140.60 at a premium of 44.20 points over spot closing. Nifty October futures saw an addition of 1.09 million (mn) units, taking the total outstanding open interest (OI) to 26.36 mn units. The near month derivatives contract will expire on October 26, 2017.

From the most active contracts, Reliance Industries October 2017 futures traded at a discount of 2.30 point at 873.30 compared with spot closing of 875.60. The numbers of contracts traded were 21,654.

Hindalco Industries October 2017 futures traded at a discount of 0.10 points at 264.40 compared with spot closing of 264.50. The numbers of contracts traded were 18,150.

Sun Pharmaceutical Industries October 2017 futures traded at a premium of 1.30 points at 539.90 compared with spot closing of 538.60. The numbers of contracts traded were 16,316.

Tata Consultancy Services October 2017 futures traded at a discount of 8.55 points at 2538.35 compared with spot closing of 2546.90. The numbers of contracts traded were 16,224.

Infosys October 2017 futures traded at a premium of 1.00 points at 929.35 compared with spot closing of 928.35. The numbers of contracts traded were 13,601.

Among Nifty calls, 10100 SP from the October month expiry was the most active call with a contraction of 0.98 million open interests. Among Nifty puts, 10000 SP from the October month expiry was the most active put with an addition of 1.25 million open interests.  The maximum OI outstanding for Calls was at 10000 SP (3.79 mn) and that for Puts was at 10000 SP (6.54 mn). The respective Support and Resistance levels of Nifty are: Resistance 10141.53--- Pivot Point 10059.32--- Support --- 10014.18.

The Nifty Put Call Ratio (PCR) finally stood at 1.38 for October month contract. The top five scrips with highest PCR on OI were Cholamandalam Investment and Finance Company (6.04), Torrent Pharmaceuticals (4.36), Ramco Cements (2.21), Oracle Financial Services Software (1.87) and Berger Paints India (1.80).
 
Among most active underlying, Reliance Industries witnessed an addition of 0.003 million units of Open Interest in the October month futures contract, followed by IndusInd Bank  witnessing an addition of 0.12 million units of Open Interest in the October month contract, Hindalco Industries witnessed an addition of 5.77 million units of Open Interest in the October month contract, Tata Steel  witnessed a contraction of  0.09 million units of Open Interest in the October month contract and Tata Consultancy Services witnessed an addition of 0.84 million units of Open Interest in the October month future contract.