Nifty closes 1% lower at 10,350 mark

Indian local benchmark Nifty closed the lackluster day in red territory on Tuesday, with a loss of around 1 percentage point. The index made a positive start but failed to hold its momentum and kept losing ground to end near intraday lows, as traders remained cautious with the private report stating that that a year after the Indian government scrapped high denomination currency notes, a wide range of indicators suggest the economy is still coming to terms with the move. It also noted that cash-dependent service sectors, like transportation, logistics, real estate and retail took a greater hit than the larger/listed entities. Some concerns also spread among the investors due to surge in oil prices which likely to prevent the Reserve Bank of India from cutting interest rates anytime soon. The market participants failed to get any sense of relief with BMI Research’s latest report that the ongoing economic reforms and improvements to the business environment will continue to support India's economic growth over the coming years, and they expect the country to be one of the best performing emerging market economies, with real GDP growth set to average 6.5 percent over the next five fiscal years.

All the indices ended in red on the NSE expect IT. The top gainers from the F&O segment were NBCC (India), Hexaware Technologies and HCL Technologies. On the other hand, the top losers were Lupin, Just Dial and Cipla. 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 increased by 1.65% and reached 13.23. The 50-share Nifty was down by 101.65 points or 0.97% to settle at 10,350.15.

Nifty November 2017 futures closed at 10409.90 on Tuesday at a premium of 59.75 points over spot closing of 10350.15, while Nifty December 2017 futures ended at 10453.15 at a premium of 103 points over spot closing. Nifty November futures saw a contraction of 1.40 million (mn) units, taking the total outstanding open interest (OI) to 24.72 mn units. The near month derivatives contract will expire on November 30, 2017.

From the most active contracts, Lupin November 2017 futures traded at a premium of 5.35 point at 865.45 compared with spot closing of 860.10. The numbers of contracts traded were 70,287.

Tata Motors November 2017 futures traded at a premium of 2.95 points at 454.65 compared with spot closing of 451.70. The numbers of contracts traded were 27,985.

Yes Bank November 2017 futures traded at a premium of 3.15 points at 313.55 compared with spot closing of 310.40. The numbers of contracts traded were 25,973.

Sun Pharmaceutical Industries November 2017 futures traded at a premium of 1.95 points at 530.95 compared with spot closing of 529.00. The numbers of contracts traded were 22,606.

Infosys November 2017 futures traded at a premium of 6.60 points at 961.95 compared with spot closing of 955.35. The numbers of contracts traded were 21,213.

Among Nifty calls, 10500 SP from the November month expiry was the most active call with an addition of 0.91 million open interests. Among Nifty puts, 10400 SP from the November month expiry was the most active put with a contraction of 0.46 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (4.19 mn) and that for Puts was at 10000 SP (5.67 mn). The respective Support and Resistance levels of Nifty are: Resistance 10443.67--- Pivot Point 10392.23--- Support --- 10298.72.

The Nifty Put Call Ratio (PCR) finally stood at 1.19 for November month contract. The top five scrips with highest PCR on OI were Repco Home Finance (6.45), Godrej Consumer Products (4.62), JSW Energy (1.79), Cholamandalam Investment and Finance Company (1.67) and Dalmia Bharat (1.51).

Among most active underlying, Lupin witnessed an addition of 2.68 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing  an addition of 1.92 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 5.47 million units of Open Interest in the November month contract, Tata Motors witnessed an addition of  2.53 million units of Open Interest in the November month contract and Yes Bank witnessed  an addition of 0.33 million units of Open Interest in the November month future contract.