Nifty snaps 8-Day winning streak

Snapping eight day winning streak, Key Indian benchmark Nifty ended on a negative note on Tuesday, amid weak Asian cues. The index started the day in red on report that the government’s revenue collection under the Goods and Services Tax (GST) slipped to Rs 83,346 crore in the month of October, from more than Rs 92,000 crore in the previous month, primarily because taxes on most commodities have come down. Some concerns also came with rating agency CRISIL's report that India's competitiveness in the labour intensive export sectors has been on a declining path in the last decade and needs significant structural reforms that need to be addressed. However, in second half of the session, the market entered into green terrain but failed to hold gains and ended near intraday low. Investors failed to get any sense of relief with FICCI’s latest Survey that India's GDP growth rate is expected to rise to 6.2 percent in the second quarter of the current fiscal as the adverse impact of demonetisation and GST appears to be bottoming out. Traders also paid no heed towards India Ratings and Research’s latest report that the reform initiatives like disinvestment drive and implementation of Goods and Services Tax (GST) will reduce pressure on the fiscal math of the country.

Traders were seen piling up positions in Auto, Media and FMCG stocks, while selling was witnessed in Realty, Pharma and Metal stocks. The top gainers from the F&O segment were NCC, Hindustan Construction Company and Indraprastha Gas. On the other hand, the top losers were Reliance Naval and Engineering, GMR Infrastructure and Reliance Communications. 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 0.90% and reached 13.14. The 50-share Nifty was down by 29.30 points or 0.28% to settle at 10,370.25.

Nifty November 2017 futures closed at 10377.55 on Tuesday, at a premium of 7.30 points over spot closing of 10370.25, while Nifty December 2017 futures ended at 10418.75, at a premium of 48.50 points over spot closing. Nifty November futures saw a contraction of 1.59 million (mn) units, taking the total outstanding open interest (OI) to 16.04 mn units. The near month derivatives contract will expire on November 30, 2017.

From the most active contracts, Infosys November 2017 futures traded at a premium of 0.70 point at 982.85 compared with spot closing of 982.15. The numbers of contracts traded were 20,929.

HDFC Bank November 2017 futures traded at a discount of 3.20 points at 1863.95 compared with spot closing of 1867.15. The numbers of contracts traded were 20,724.

Indiabulls Housing Finance November 2017 futures traded at a premium of 1.20 points at 1201.20 compared with spot closing of 1200.00. The numbers of contracts traded were 20,669.

Axis Bank November 2017 futures traded at a premium of 1.25 points at 563.50 compared with spot closing of 562.25. The numbers of contracts traded were 17,057.

Tata Steel November 2017 futures traded at a premium of 1.15 points at 704.15 compared with spot closing of 703.00. The numbers of contracts traded were 16,308.
Among Nifty calls, 10400 SP from the November month expiry was the most active call with an addition of 0.98 million open interests. Among Nifty puts, 10300 SP from the November month expiry was the most active put with a contraction of 0.87 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (6.78 mn) and that for Puts was at 10000 SP (5.68 mn). The respective Support and Resistance levels of Nifty are: Resistance 10401.47--- Pivot Point 10378.33--- Support --- 10347.12.

The Nifty Put Call Ratio (PCR) finally stood at 1.05for November month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (4.48), JSW Energy (2.54), Maruti Suzuki India (1.59), Dewan Housing Finance Corporation (1.38) and Repco Home Finance (1.25).

Among most active underlying, Reliance Industries witnessed a contraction of 7.33 million units of Open Interest in the November month futures contract, followed by HDFC Bank witnessing  a contraction of 7.40 million units of Open Interest in the November month contract, Tata Global Beverages witnessed a contraction of 3.18 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of  5.39 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed  a contraction of 0.26 million units of Open Interest in the November month future contract.