Nifty ends near intraday high; reclaims 10,200 mark

The local benchmark Nifty ended near intraday high level on Thursday, reclaiming its crucial psychological level of 10,200 mark amid firm European markets. The index remained buoyant throughout the session, as support came from CEA Arvind Subramanian's statement that the rate cuts by the Council will not have any major impact on government's revenue and no major effect on India's fiscal deficit. Besides, traders took some encouragement with Finance Minister Arun Jaitley's statement that India's economic slowdown has bottomed out and now it should start moving upwards after recovering from the 'temporary blip' seen during the recent structural changes. Adding to the optimism, a private report stated that the demand for quality goods and services is increasing in rural India reflecting improvement in living standards. Meanwhile, merchant exporters can start claiming tax refunds using the new utility that will be activated on the GST Network portal tonight.

All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment were Reliance Communications, Manappuram Finance and Muthoot Finance. On the other hand, the top losers were Fortis Healthcare, Balkrishna Industries and Reliance Naval and Engineering.  In the index option segment, maximum OI continues to be seen in the 10200-10800 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 decreased by 5.63% and reached 13.46. The 50-share Nifty was up by 96.70 points or 0.96% to settle at 10,214.75.

Nifty November 2017 futures closed at 10250.90 on Thursday, at a premium of 36.15 points over spot closing of 10214.75, while Nifty December 2017 futures ended at 10286.50, at a premium of 71.75 points over spot closing. Nifty November futures saw a contraction of 0.92 million (mn) units, taking the total outstanding open interest (OI) to 23.29 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 1.10 point at 335.05 compared with spot closing of 333.95. The numbers of contracts traded were 20,907.

Infosys November 2017 futures traded at a premium of 0.70 points at 990.65 compared with spot closing of 989.95. The numbers of contracts traded were 19,160.

Reliance Infrastructure November 2017 futures traded at a premium of 0.15 points at 446.15 compared with spot closing of 446.00. The numbers of contracts traded were 17,758.

Reliance Industries November 2017 futures traded at a premium of 0.90 points at 906.15 compared with spot closing of 905.25. The numbers of contracts traded were 15,025.

Reliance Capital November 2017 futures traded at a premium of 1.75 points at 430.30 compared with spot closing of 428.55. The numbers of contracts traded were 14,218.

Among Nifty calls, 10300 SP from the November month expiry was the most active call with a contraction of 0.68 million open interests. Among Nifty puts, 10200 SP from the November month expiry was the most active put with an addition of 0.64 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.44 mn) and that for Puts was at 10200 SP (5.18 mn). The respective Support and Resistance levels of Nifty are: Resistance 10251.60--- Pivot Point 10195.40--- Support --- 10158.55.

The Nifty Put Call Ratio (PCR) finally stood at 0.88 for November month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (3.74), JSW Energy (2.26), Dewan Housing Finance Corporation (1.35), Dalmia Bharat (1.30) and Infibeam Incorporation (1.27).

Among most active underlying, State Bank of India witnessed an addition of 2.01 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing  a contraction of 0.67 million units of Open Interest in the November month contract, Infosys witnessed an addition of 0.11 million units of Open Interest in the November month contract, Punjab National Bank witnessed an addition of  1.86 million units of Open Interest in the November month contract and DLF witnessed  an addition of 3.66 million units of Open Interest in the November month future contract.