Nifty ends on positive note as Moody’s upgrades India’s rating

Key Indian benchmark Nifty ended the buoyant session in green on Friday, with the gains of more than half a percent. The index made a positive start with the report that Moody’s Investors Service upgraded India’s sovereign bond rating to Baa2 from Baa3 with a stable outlook. The rating agency also noted that continued progress on economic and institutional reform will enhance India's high growth potential. Some support also came with Former RBI Governor C Rangarajan’s statement that the inflation, which rose to 3.58 per cent in October, may ease by December and end up below 4 per cent by the end of the current fiscal. The market maintained its upward trajectory in second half too, supported by positive Asian markets and healthy uptake in bank, metal and realty stocks. The traders also took some support with Niti Aayog Vice Chairman Rajiv Kumar’s statement that India's credit rating upgrade by Moody's is a reflection of the country's growth story. He also expressed hope that other global agencies such as S&P and Fitch would follow suit. Separately, Finance Minister Arun Jaitley said it is a recognition that India continues to follow the path of fiscal prudence which has brought stability to the economy.

All the sectoral indices ended in green on the NSE except IT. The top gainers from the F&O segment were Adani Enterprises, DLF and Tata Power Company. On the other hand, the top losers were Page Industries, Tech Mahindra and United Breweries. In the index option segment, maximum OI continues to be seen in the 10200-10800 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 1.86% and reached 13.71. The 50-share Nifty was up by 68.85 points or 0.67% to settle at 10,283.60.

Nifty November 2017 futures closed at 10308.85 on Friday, at a premium of 25.25 points over spot closing of 10283.60, while Nifty December 2017 futures ended at 10345.85, at a premium of 62.25 points over spot closing. Nifty November futures saw a contraction of 0.23 million (mn) units, taking the total outstanding open interest (OI) to 23.06 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 1.90 point at 338.60 compared with spot closing of 336.70. The numbers of contracts traded were 27,401.

DLF November 2017 futures traded at a premium of 1.25 points at 224.65 compared with spot closing of 223.40. The numbers of contracts traded were 24,472.

Yes Bank November 2017 futures traded at a premium of 1.30 points at 307.40 compared with spot closing of 306.10. The numbers of contracts traded were 18,905.

ICICI Bank November 2017 futures traded at a premium of 1.80 points at 326.35 compared with spot closing of 324.55. The numbers of contracts traded were 17,331.

Sun Pharmaceutical Industries November 2017 futures traded at a premium of 2.15 points at 519.15 compared with spot closing of 517.00. The numbers of contracts traded were 15,508.
Among Nifty calls, 10400 SP from the November month expiry was the most active call with an addition of 0.42 million open interests. Among Nifty puts, 10300 SP from the November month expiry was the most active put with an addition of 1.64 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.99 mn) and that for Puts was at 10200 SP (4.65 mn). The respective Support and Resistance levels of Nifty are: Resistance 10328.78--- Pivot Point 10298.42--- Support --- 10253.23.

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 Godrej Consumer Products (3.79), JSW Energy (2.18), Dewan Housing Finance Corporation (1.36), DLF (1.25) and Infibeam Incorporation (1.22).

Among most active underlying, State Bank of India witnessed a contraction of 0.95 million units of Open Interest in the November month futures contract, followed by DLF witnessing  an addition of 3.45 million units of Open Interest in the November month contract, Reliance Industries witnessed a contraction of 1.27 million units of Open Interest in the November month contract, ICICI Bank witnessed a contraction of  0.81 million units of Open Interest in the November month contract and Tata Steel  witnessed  a contraction of 0.45 million units of Open Interest in the November month future contract.