Nifty ends in red; breaches 10,150 mark

The local equity benchmark Nifty ended Tuesday’s session in red terrain, tracking weakness in global markets. Market was largely pulled down by weakness in IT, Pharma, Media and PSU Banks. The index made a gap-down opening with a report that the crude oil import bill for India is expected to increase by $37 billion to $125 billion during the current financial year (2018-19, or FY19) - a 42% spike over the 2017-18 (FY18) bill of $88 billion. Index extended losses with report that India is the second-most underinsured country in the world with an insurance gap of $27 billion (approximately Rs 1.98 lakh crore).

In second half of the session, the Nifty maintained its downward momentum and closed below its crucial 10,150 level, as traders remained cautious with a report that the government doesn’t have centralised information as yet on prosecutions launched against persons identified for suspicious cash deposits. Responding to an RTI filing by FE, the I-T department, however, said 11.8 lakh of the 23.5 lakh persons identified for suspicious post-demonetisation deposits and sent notices to by it on the e-filing portal replied to the queries raised. The market participants paid no heed towards EEPC India’s statement that the government is responding well to the rising trade tensions between the world’s two largest economies, maintaining a stance that serves the cause of Indian exporters best, realising how critical exports are for the country's big macro picture.

All the sectoral indices ended in red on the NSE except Realty. The top gainers from the F&O segment were Mahindra & Mahindra Financial Services, Dalmia Bharat and TVS Motor Company. On the other hand, the top losers were Biocon, PC Jeweller and Berger Paints. 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 10.86% and reached 19.03. The 50-share Nifty was down by 98.45 points or 0.96% to settle at 10,146.80.

Nifty October 2018 futures closed at 10147.90 on Tuesday, at a premium of 1.10 points over spot closing of 10146.80, while Nifty November 2018 futures ended at 10196.05, at a premium of 49.25 points over spot closing. Nifty October futures saw a contraction of 4.07 million (mn) units, taking the total outstanding open interest (OI) to 13.08 mn units. The near month derivatives contract will expire on October 25, 2018.

From the most active contracts, Bajaj Finance October 2018 futures traded at a discount of 48.40 points at 2086.60 compared with spot closing of 2135.00. The numbers of contracts traded were 58,081.

Indiabulls Housing Finance October 2018 futures traded at a discount of 13.55 points at 725.45 compared with spot closing of 739.00. The numbers of contracts traded were 55,459.

Yes Bank October 2018 futures traded at a discount of 1.45 points at 213.65 compared with spot closing of 215.10. The numbers of contracts traded were 32,562.

Reliance Industries October 2018 futures traded at a discount of 6.00 points at 1055.70 compared with spot closing of 1061.70. The numbers of contracts traded were 31,646.

IndusInd Bank October 2018 futures traded at a discount of 2.00 points at 1474.75 compared with spot closing of 1476.75. The numbers of contracts traded were 30,600. 
 
Among Nifty calls, 10200 SP from the October month expiry was the most active call with an addition of 1.49 million open interests. Among Nifty puts, 10,100 SP from the October month expiry was the most active put with an addition of 0.04 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.95mn) and that for Puts was at 10,000 SP (3.67mn). The respective Support and Resistance levels of Nifty are: Resistance 10,211.82 ---- Pivot Point 10,157.08 --- Support --- 10,092.07.

The Nifty Put Call Ratio (PCR) finally stood at 0.71 for October month contract. The top five scrips with highest PCR on OI were Page Industries (4.00), Bosch (2.00), Berger Paints India (1.51), Equitas Holdings (1.42) and Oil India (1.22).

Among most active underlying, Reliance Industries witnessed a contraction of 9.26 million units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessing a contraction of 0.57 million units of Open Interest in the October month contract, ICICI Bank witnessed a contraction of 17.42 million units of Open Interest in the October month contract, State Bank of India witnessed a contraction of 12.42 million units of Open Interest in the October month contract and Asian Paints witnessed a contraction of 2.03 million units of Open Interest in the October month future contract.