Nifty end near day’s low; slips below 10,250 mark

The local benchmark Nifty ended the trade near intraday low on Monday, with losses of around a percentage point. The index opened in green terrain but immediately slipped into red on account of weak Index of Industrial production (IIP) data. India’s Industrial production growth slowed down to 3.8% in the month of September 2017, as against 5.7% in September 2016, due to subdued performance of the manufacturing sector, coupled with contraction in output of consumer durables. Markets extended losses to end at day’s lows, as some anxiety came with the reports that investments in the Indian capital market through participatory notes plunged to an over eight-year low of Rs 1.23 lakh crore at September-end in view of stringent norms put in place by the Securities and Exchange Board of India. Traders failed to take any relief with the GST Council's recent move to cut tax rate on 178 items from 28% to 18%. Furthermore, weakness in global markets and release of Consumer Price Index-based inflation data for October which is scheduled to be released today, also kept the sentiments downbeat.

All the sectoral indices ended in red on the NSE except IT. The top gainers from the F&O segment were Jaiprakash Associates, Just Dial and Balkrishna Industries.  On the other hand, the top losers were Reliance Communications, Suzlon Energy and Hindustan Construction Company. In the index option segment, maximum OI continues to be seen in the 10300-10800 calls and 9900-10400 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 4.23% and reached 14.04. The 50-share Nifty was down by 96.80 points or 0.94% to settle at 10,224.95.

Nifty November 2017 futures closed at 10269.40 on Monday, at a premium of 44.45 points over spot closing of 10,224.95, while Nifty December 2017 futures ended at 10310.65, at a premium of 85.70 points over spot closing. Nifty November futures saw an addition of 0.29 million (mn) units, taking the total outstanding open interest (OI) to 26.02 mn units. The near month derivatives contract will expire on November 30, 2017.

From the most active contracts, State Bank of India November 2017 futures traded at a premium of 1.80 point at 332.80 compared with spot closing of 331.00. The numbers of contracts traded were 35,330.

Axis Bank November 2017 futures traded at a premium of 3.55 points at 538.55 compared with spot closing of 535.00. The numbers of contracts traded were 26,146.

DLF November 2017 futures traded at a premium of 1.15 points at 203.50 compared with spot closing of 202.35. The numbers of contracts traded were 17,678 .

Sun Pharmaceutical Industries November 2017 futures traded at a premium of 1.50 points at 535.35 compared with spot closing of 533.85. The numbers of contracts traded were 17,068.

Larsen & Toubro November 2017 futures traded at a discount of 1.90 points at 1238.70 compared with spot closing of 1,240.60. The numbers of contracts traded were 15,621.

Among Nifty calls, 10400 SP from the November month expiry was the most active call with an addition of 1.08 million open interests. Among Nifty puts, 10300 SP from the November month expiry was the most active put with a contraction of 0.35 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.52 mn) and that for Puts was at 10200 SP (4.91 mn). The respective Support and Resistance levels of Nifty are: Resistance 10300.65--- Pivot Point 10258.45--- Support --- 10182.75.

The Nifty Put Call Ratio (PCR) finally stood at 0.90 for November month contract. The top five scrips with highest PCR on OI were Repco Home Finance (4.50), Godrej Consumer Products (3.66), JSW Energy (1.89), Cholamandalam Investment and Finance Company (1.74) and Dewan Housing Finance Corporation (1.35).

Among most active underlying, State Bank of India witnessed a contraction of 0.28 million units of Open Interest in the November month futures contract, followed by DLF witnessing  an addition of 3.61 million units of Open Interest in the November month contract, Axis Bank witnessed a contraction of 3.27 million units of Open Interest in the November month contract, Larsen & Toubro witnessed a contraction of  0.29 million units of Open Interest in the November month contract and Reliance Industries witnessed  an addition of 0.37 million units of Open Interest in the November month future contract.