Nifty ends at fresh record high

The benchmark index Nifty ended last trading day of the week at fresh record high amid firm global cues. The index traded in positive territory for most part of the session with taking support from the report that Finance Ministry gave green signal to foreign direct investment (FDI) proposals worth Rs 24.56 crore. Adding some optimism, India's headline services index expanded further in the month of October on the back of rise in output activity. The seasonally adjusted Nikkei Services Business Activity Index surged to 51.7 in October from 50.7 in September, while the Nikkei India Composite PMI Output Index which measures both manufacturing and services too rose to 51.3 in October from 51.1 in September. Some support also came after Prime Minister Narendra Modi asserted that starting business in India is easier than ever before as procedures have been simplified, archaic laws repealed and compliance requirements reduced. Meanwhile, responsible or sustainable investment in India is at a niche stage as assets deployed under this strategy amount to nearly $31 billion, while globally it stood at a whopping $22.89 trillion.

Traders were seen piling up positions in Realty, PSU Banking and Financial Services stocks, while selling was witnessed in FMCG, Metal and Pharma stocks.  The top gainers from the F&O segment were Steel Authority of India, Ujjivan Financial Services and Arvind.  On the other hand, the top losers were Andhra Bank, Glenmark Pharmaceuticals and Hindustan Construction Company.  In the index option segment, maximum OI continues to be seen in the 10300-10800 calls and 9800-10400 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 0.79% and reached 11.91. The 50-share Nifty was up by 28.70 points or 0.28% to settle at 10,452.50.

Nifty November 2017 futures closed at 10486.80 on Friday at a premium of 34.30 points over spot closing of 10452.50, while Nifty December 2017 futures ended at 10521.70 at a premium of 69.20 points over spot closing. Nifty November futures saw an addition of 0.56 million (mn) units, taking the total outstanding open interest (OI) to 25.96 mn units. The near month derivatives contract will expire on November 30, 2017.

From the most active contracts, Punjab National Bank November 2017 futures traded at a premium of 1.70 point at 209.00 compared with spot closing of 207.30. The numbers of contracts traded were 52,257.

State Bank of India November 2017 futures traded at a discount of 1.20 points at 324.80 compared with spot closing of 326.00. The numbers of contracts traded were 21,159.

Bharti Airtel November 2017 futures traded at a premium of 4.15 points at 543.95 compared with spot closing of 539.80. The numbers of contracts traded were 20,649.

Tata Motors November 2017 futures traded at a premium of 0.50 points at 449.00 compared with spot closing of 448.50. The numbers of contracts traded were 20,052.

Arvind November 2017 futures traded at a premium of 2.60 points at 443.60 compared with spot closing of 441.00. The numbers of contracts traded were 17,727.

Among Nifty calls, 10500 SP from the November month expiry was the most active call with a contraction of 0.18 million open interests. Among Nifty puts, 10400 SP from the November month expiry was the most active put with an addition of 0.54 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (3.05 mn) and that for Puts was at 10000 SP (6.22 mn). The respective Support and Resistance levels of Nifty are: Resistance 10474.93--- Pivot Point 10439.27--- Support --- 10416.83.

The Nifty Put Call Ratio (PCR) finally stood at 1.42 for November month contract. The top five scrips with highest PCR on OI were Repco Home Finance (6.45), Godrej Consumer Products (3.98), JSW Energy (1.71), Cholamandalam Investment and Finance Company (1.56) and Indo Count Industries (1.44).

Among most active underlying, Punjab National Bank witnessed an addition of 1.73 million units of Open Interest in the November month futures contract, followed by State Bank of India witnessing  an addition of 1.91 million units of Open Interest in the November month contract, Bharti Airtel witnessed a contraction of 0.38 million units of Open Interest in the November month contract, Hindalco Industries witnessed a contraction of  1.54 million units of Open Interest in the November month contract and Reliance Industries witnessed  an addition of 0.39 million units of Open Interest in the November month future contract.