Nifty bounced back; surpasses 10,450 mark

Nifty barometer Nifty50 bounced back from yesterday’s fall and ended last trading day of the week in green with significant gains driven by fall in crude prices and the recovery in rupee. Barring IT stocks, there was buying across all other sectoral indices. Market traded with full traction throughout the session, as traders took note of FICCI’s latest quarterly survey showing that India’s manufacturing sector output is expected to register robust growth in the July-September quarter on account of higher production even as the hiring outlook for the sector remains subdued. The survey also revealed that exports to rise in the second quarter. The domestic sentiments also remained upbeat with the Revenue Department of the Finance Ministry’s statement that the government yet again increased import duty on several electronic items and telecom equipment to rein in current account deficit (CAD) and stabilise the rupee.

Barometer maintained a healthy momentum in the afternoon deals, taking support from Commerce Minister Suresh Prabhu’s statement that the New Industrial Policy is in sync with the challenges and opportunities for India with the fourth industrial revolution technologies and will place the country firmly in the global supply and value chains. Adding to the optimism, finance ministry is confident that crude oil prices will move only down south hereon and the government is expecting the rupee to gain against the dollar in coming weeks.

All the sectoral indices ended in green on the NSE except IT. The top gainers from the F&O segment were Tata Power, Reliance Infrastructure and Adani Power. On the other hand, the top losers were Tata Consultancy Services, Aurobindo Pharma and HCL Technologies. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 9,900 -10,200 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 9.34% and reached 18.62. The 50-share Nifty was up by 237.85 points or 2.32% to settle at 10,472.50.

Nifty October 2018 futures closed at 10486.55 on Friday, at a premium of 14.05 points over spot closing of 10472.50, while Nifty November 2018 futures ended at 10534.40, at a premium of 61.90 points over spot closing. Nifty October futures saw a contraction of 0.45 million (mn) units, taking the total outstanding open interest (OI) to 19.25 mn units. The near month derivatives contract will expire on October 25, 2018.

From the most active contracts, Tata Consultancy Services October 2018 futures traded at a premium of 2.35 points at 1922.35 compared with spot closing of 1920.00. The numbers of contracts traded were 33,092.

Yes Bank October 2018 futures traded at a premium of 1.90 points at 247.55 compared with spot closing of 245.65. The numbers of contracts traded were 28,731.

Reliance Industries October 2018 futures traded at a premium of 3.00 points at 1128.50 compared with spot closing of 1125.50. The numbers of contracts traded were 24,038.

State Bank of India October 2018 futures traded at a premium of 0.60 points at 264.30 compared with spot closing of 263.70. The numbers of contracts traded were 21,698.

Bajaj Finance October 2018 futures traded at a premium of 6.15 points at 2292.15 compared with spot closing of 2286.00. The numbers of contracts traded were 21,507.

Among Nifty calls, 10500 SP from the October month expiry was the most active call with a contraction of 0.95 million open interests. Among Nifty puts, 10,300 SP from the October month expiry was the most active put with an addition of 0.58 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (4.78mn) and that for Puts was at 10,000 SP (4.20mn). The respective Support and Resistance levels of Nifty are: Resistance 10,535.92 ---- Pivot Point 10,429.03 --- Support --- 10,365.62.

The Nifty Put Call Ratio (PCR) finally stood at 0.99 for October month contract. The top five scrips with highest PCR on OI were Page Industries (5.00), Bosch (2.00), Berger Paints India (1.39), Ajanta Pharma (1.27) and Cholamandalam Investment and Finance (1.23).

Among most active underlying, Tata Consultancy Services witnessed an addition of 0.74 million units of Open Interest in the October month futures contract, followed by Reliance Industries witnessing a contraction of 0.03 million units of Open Interest in the October month contract, Bajaj Finance witnessed a contraction of 0.15 million units of Open Interest in the October month contract, Maruti Suzuki India witnessed a contraction of 0.15 million units of Open Interest in the October month contract and ICICI Bank witnessed an addition of 1.42 million units of Open Interest in the October month future contract.