Nifty snaps four-day winning streak

The local benchmark Nifty snapped its four-day winning streak to end in red territory on Friday, as profit booking took place in final hour of trade. The index traded cautiously throughout the day, as concerns came with Crisil’s latest report stating that the infrastructure spending in the country is required to be enhanced to Rs 50 lakh crore over the next five years and power, transport and urban sectors are expected to corner over three-fourths of such investments. However, losses remained capped, as traders got some relief with Prime Minister Narendra Modi’s statement that the GST has increased competition among manufacturers which will help to bring down prices and added that in the long term, the consumers will be the biggest beneficiaries of it. PM also noted that GST has also lead to the abolition of dozens of indirect and hidden taxes. Meanwhile, the government extended the deadline by a month till November 30 for businesses to claim credit of transitional stock in the Goods and Services Tax (GST) regime.

Traders were seen piling up positions in Pharma, Media and FMCG stocks, while selling was witnessed in PSU Banking, Realty and IT stocks. The top gainers from the F&O segment were United Spirits, Engineers India and Wockhardt. On the other hand, the top losers were Bharti Infratel, IDBI Bank and Allahabad Bank. In the index option segment, maximum OI continues to be seen in the 10300-10700 calls and 9800-10300 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 1.23% and reached 11.47. The 50-share Nifty was down by 20.75 points or 0.20% to settle at 10,323.05.

Nifty November 2017 futures closed at 10356.85 on Friday at a premium of 33.80 points over spot closing of 10323.05, while Nifty December 2017 futures ended at 10392.25 at a premium of 69.20 points over spot closing. Nifty November futures saw an addition of 0.60 million (mn) units, taking the total outstanding open interest (OI) to 22.95 mn units. The near month derivatives contract will expire on November 30, 2017.

From the most active contracts, Yes Bank November 2017 futures traded at a premium of 1.75 point at 309.45 compared with spot closing of 307.70. The numbers of contracts traded were 52,751.

Maruti Suzuki India November 2017 futures traded at a premium of 45.65 points at 8146.85 compared with spot closing of 8101.20. The numbers of contracts traded were 44,240.

United Spirits November 2017 futures traded at a premium of 12.70 points at 3049.45 compared with spot closing of 3036.75. The numbers of contracts traded were 36,945.

ICICI Bank November 2017 futures traded at a premium of 0.60 points at 302.85 compared with spot closing of 302.25. The numbers of contracts traded were 31,972.

ITC November 2017 futures traded at a premium of 0.90 points at 270.20 compared with spot closing of 269.30. The numbers of contracts traded were 22,974.

Among Nifty calls, 10500 SP from the November month expiry was the most active call with an addition of 0.44 million open interests. Among Nifty puts, 10300 SP from the November month expiry was the most active put with an addition of 0.69 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (3.16 mn) and that for Puts was at 10000 SP (4.64 mn). The respective Support and Resistance levels of Nifty are: Resistance 10355.70--- Pivot Point 10333.50 --- Support --- 10300.85.

The Nifty Put Call Ratio (PCR) finally stood at 1.12 for November month contract. The top five scrips with highest PCR on OI were Repco Home Finance (17.75), Cholamandalam Investment and Finance Company (9.00), Kajaria Ceramics (3.34), Nestle India (3.00) and Balkrishna Industries (1.63).

Among most active underlying, Maruti Suzuki India witnessed an addition of 0.03 million units of Open Interest in the November month futures contract, followed by ICICI Bank witnessing  an addition of 0.97 million units of Open Interest in the November month contract, Yes Bank witnessed an addition of 13.64 million units of Open Interest in the November month contract, State Bank of India witnessed an addition of  0.44 million units of Open Interest in the November month contract and ITC witnessed  an addition of 5.74 million units of Open Interest in the November month future contract.