Nifty ends on positive note

Key Indian benchmark Nifty ended on a positive note on Wednesday, aided by firm cues from Asian markets. The index remained in green for the most part of the session with taking support from ICRA's latest report stating that economic expansion in terms of gross value added (GVA) is expected to improve to 6.3% in the three months to September from 5.6% in the previous quarter, on the back of a rise in industrial growth. It also noted that headline GVA growth, however, is likely to trail the 6.8% recorded in the second quarter of FY17. However, Nifty witnessed some hiccups and drifted in red terrain in first half of the session after global rating agency S&P reported that India's activity indicator looks lackluster indicating they might not barge on the BBB- rating on India any time soon. But, recovery in second half of trade helped market to enter into green and settle above its neutral line. Some comfort also came with the report that the government has set up a 14-member panel to identify and suggest ways to address issues faced in implementation of the law. Besides, traders were also positive with the report that as many as 43.67 lakh businesses have filed the initial GSTR-3B returns for the month of October -- the highest monthly return filing within due date. As many as 39.33 lakh returns were filed within due date for September and 28.46 lakh for August and 33.98 lakh for July.

Traders were seen piling up positions in PSU Banking, Media and FMCG stocks, while selling was witnessed in IT, Metal and Pharma stocks.  The top gainers from the F&O segment were the India Cements, Apollo Hospitals Enterprise and United Breweries. On the other hand, the top losers were Indiabulls Real Estate, Idea Cellular and Wockhardt. 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 2.35% and reached 14.03. The 50-share Nifty was up by 15.40 points or 0.15% to settle at 10,342.30.

Nifty November 2017 futures closed at 10357.95 on Wednesday, at a premium of 15.65 points over spot closing of 10342.30, while Nifty December 2017 futures ended at 10393.90, at a premium of 51.60 points over spot closing. Nifty November futures saw a contraction of 0.43 million (mn) units, taking the total outstanding open interest (OI) to 21.73 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 0.45 point at 335.95 compared with spot closing of 335.50. The numbers of contracts traded were 24,957.

Tata Motors November 2017 futures traded at a premium of 1.70 points at 429.70 compared with spot closing of 428.00. The numbers of contracts traded were 17,481.

Sun Pharmaceutical Industries November 2017 futures traded at a premium of 0.15 points at 537.15 compared with spot closing of 537.00. The numbers of contracts traded were 14,895.

Punjab National Bank November 2017 futures traded at a premium of 0.90 points at 189.70 compared with spot closing of 188.80. The numbers of contracts traded were 13,551.

Bank of Baroda November 2017 futures traded at a premium of 0.60 points at 181.20 compared with spot closing of 180.60. The numbers of contracts traded were 10,499.

Among Nifty calls, 10400 SP from the November month expiry was the most active call with an addition of 0.23 million open interests. Among Nifty puts, 10300 SP from the November month expiry was the most active put with an addition of 0.04 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (6.13 mn) and that for Puts was at 10300 SP (5.43 mn). The respective Support and Resistance levels of Nifty are: Resistance 10370.82--- Pivot Point 10340.18--- Support --- 10311.67.

The Nifty Put Call Ratio (PCR) finally stood at 0.97 for November month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (3.76), JSW Energy (2.23), DLF (1.37), Maruti Suzuki India (1.37) and Dewan Housing Finance Corporation (1.37).

Among most active underlying, State Bank of India witnessed a contraction of 3.25 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing  a contraction of 1.08 million units of Open Interest in the November month contract, Tata Motors witnessed a contraction of 0.21 million units of Open Interest in the November month contract, Maruti Suzuki India witnessed an addition of  0.009 million units of Open Interest in the November month contract and Punjab National Bank witnessed  an addition of 1.07 million units of Open Interest in the November month future contract.