Nifty ends marginally lower; holds 10,200 mark

Key Indian benchmark Nifty ended the lackluster day in red terrain on Wednesday, with losses of more than 20 points amid mixed global cues. The index remained sluggish throughout the session with Revenue Secretary Hasmukh Adhia’s statement that the Goods and Services Tax (GST) compliance is still low. He added that a clear trend about revenue collections is likely to emerge only after three-four months, once integrated GST (IGST) is converted into Central GST and State GST, as GST revenue includes IGST revenue. Sentiments also remained pessimistic with Vice-President M Venkaiah Naidu’s statement that any new initiative will face problems but said the focus should now be on implementation of the tax reform and making it more people friendly. However, the market trimmed some of its losses in the second half of the day with a member of the Prime Minister’s Economic Advisory Council (EAC) Surjit Bhalla’s statement that the government is likely to stick to its fiscal deficit target of 3.2 per cent of GDP, and may accelerate sales of government stakes in lenders and other companies as part of an effort to recapitalise banks. Some support also came with the report stating that the government has imposed anti-dumping duty on imports of some flat steel products from China and European Union (EU) for five years, in a bid to guard the interest of domestic players from cheap in-bound shipments. Meanwhile, India Inc’s outward foreign direct investment (OFDI) in overseas ventures plunged by 39.29 per cent to $2654.45 million during September 2017 from $4372.47 million in the same month of last year.

All the sectoral indices ended in red on the NSE expect FMCG. The top gainers from the F&O segment were NCC, Indraprastha Gas and Reliance Industries. On the other hand, the top losers were Axis Bank, ICICI Bank and Bharti Infratel. 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 decreased by 0.60% and reached 11.54. The 50-share Nifty was down by 23.60 points or 0.23% to settle at 10,210.85.

Nifty October 2017 futures closed at 10237.50 on Wednesday at a premium of 26.65 points over spot closing of 10210.85, while Nifty November 2017 futures ended at 10269.25 at a premium of 58.40 points over spot closing. Nifty October futures saw a contraction of 0.32 million (mn) units, taking the total outstanding open interest (OI) to 26.47 mn units. The near month derivatives contract will expire on October 26, 2017.

From the most active contracts, Axis Bank October 2017 futures traded at a premium of 1.25 point at 466.25 compared with spot closing of 465.00. The numbers of contracts traded were 56,121.

Reliance Industries October 2017 futures traded at a premium of 0.30 points at 916.70 compared with spot closing of 916.40. The numbers of contracts traded were 37,991.

ICICI Bank October 2017 futures traded at a premium of 0.60 points at 264.10 compared with spot closing of 263.50. The numbers of contracts traded were 14,621.

Yes Bank October 2017 futures traded at a discount of 0.05 points at 363.95 compared with spot closing of 364.00. The numbers of contracts traded were 13,811.

UltraTech Cement October 2017 futures traded at a discount of 2.25 points at 4085.75 compared with spot closing of 4088.00. The numbers of contracts traded were 13,760.

Among Nifty calls, 10300 SP from the October month expiry was the most active call with an addition of 0.34 million open interests. Among Nifty puts, 10200 SP from the October month expiry was the most active put with an addition of 0.08 million open interests.  The maximum OI outstanding for Calls was at 10200 SP (3.59 mn) and that for Puts was at 10000 SP (7.60 mn). The respective Support and Resistance levels of Nifty are: Resistance 10239.62--- Pivot Point 10207.68--- Support --- 10178.92.

The Nifty Put Call Ratio (PCR) finally stood at 1.60 for October month contract. The top five scrips with highest PCR on OI were Oracle Financial Services Software (1.87), Ramco Cements (1.81), Bharti Airtel (1.77), Kajaria Ceramics (1.60) and Hindalco (1.57).

Among most active underlying, Reliance Industries witnessed a contraction of 0.67 million units of Open Interest in the October month futures contract, followed by Axis Bank witnessing an addition of 0.51 million units of Open Interest in the October month contract, Maruti Suzuki India witnessed an addition of 0.05 million units of Open Interest in the October month contract, State Bank of India witnessed an addition of  0.68 million units of Open Interest in the October month contract and Tata Steel witnessed a contraction of 0.67 million units of Open Interest in the October month future contract.