Nifty closes at fresh record high

The local benchmark Nifty closes the session at fresh record high on Monday to settle above psychological level of 10,200. The index traded in green throughout the day with report highlighting that India’s exports grew for the 13th straight month recording robust growth of 25.67% to $28.61 billion in September 2017, on the back of expansion in shipments of chemicals, petroleum and engineering products. Traders remained optimistic with Niti Aayog Vice Chairman Rajiv Kumar’s statement that slowdown in India's economic growth that began in 2013-14 has bottomed out and Gross Domestic Product (GDP) is likely to grow 6.9 to 7 percent in the fiscal 2017-18 and 7.5 percent in 2018-19. Some support also came after India's inflation on wholesale level softened in the month of September. According to the latest data released by the government, the wholesale price inflation (WPI) stood at 2.60% in September as against 3.24% in the previous month and 1.36% during the corresponding month of the previous year. Adding to the gains, IMF Managing Director Christine Lagarde has expressed confidence that the series of reforms like demonetisation and Goods and Services Tax (GST) regime have put country’s economy on a very solid track in the mid-term. 

Traders were seen piling up positions in Pharma, Realty and Metal stocks, while selling was witnessed only in Financial Services and PSU Banking stocks. The top gainers from the F&O segment were The Federal Bank, Bharti Airtel and Idea Cellular. On the other hand, the top losers were Bajaj Finance, Jaiprakash Associates and Indiabulls Real Estate. In the index option segment, maximum OI continues to be seen in the 9900-10500 calls and 9500-10200 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 0.42% and reached 11.31. The 50-share Nifty was up by 63.40 points or 0.62% to settle at 10,230.85.

Nifty October 2017 futures closed at 10255.95 on Monday at a premium of 25.10 points over spot closing of 10230.85, while Nifty November 2017 futures ended at 10287.30 at a premium of 56.45 points over spot closing. Nifty October futures saw an addition of 0.09 million (mn) units, taking the total outstanding open interest (OI) to 26.75 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 0.25 point at 877.25 compared with spot closing of 877.50. The numbers of contracts traded were 30,568.

The Federal Bank October 2017 futures traded at a premium of 0.25 points at 125.35 compared with spot closing of 125.10. The numbers of contracts traded were 21,264.

Bharat Financial Inclusion October 2017 futures traded at a premium of 0.65 points at 1020.65 compared with spot closing of 1,020.00. The numbers of contracts traded were 18,293.

Bharti Airtel October 2017 futures traded at a discount of 2.20 points at 454.80 compared with spot closing of 457.00. The numbers of contracts traded were 16,507.

Vedanta October 2017 futures traded at a premium of 0.50 points at 335.50 compared with spot closing of 335.00. The numbers of contracts traded were 16,112.

Among Nifty calls, 10300 SP from the October month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 10200 SP from the October month expiry was the most active put with an addition of 2.19 million open interests.  The maximum OI outstanding for Calls was at 10200 SP (3.24 mn) and that for Puts was at 10000 SP (7.08 mn). The respective Support and Resistance levels of Nifty are: Resistance 10257.50--- Pivot Point 10216.30--- Support --- 10189.65.

The Nifty Put Call Ratio (PCR) finally stood at 1.70 for October month contract. The top five scrips with highest PCR on OI were Cholamandalam Investment and Finance Company (5.74), Torrent Pharmaceuticals (4.13), Ramco Cements (2.08), Bharti Airtel (1.98) and Oracle Financial Services Software (1.87).

Among most active underlying, Reliance Industries witnessed a contraction of 2.29 million units of Open Interest in the October month futures contract, followed by the Federal Bank witnessing an addition of 12.73 million units of Open Interest in the October month contract, Vedanta witnessed an addition of 0.33 million units of Open Interest in the October month contract, Tata Steel witnessed a contraction of  0.32 million units of Open Interest in the October month contract and Bharat Financial Inclusion witnessed a contraction of 0.37 million units of Open Interest in the October month future contract.