Nifty tumbles almost 1%; ends below 10,050 mark

Local equity benchmark -- Nifty --  tumbled almost 1 per cent to end last trading session of the week on a subdued note amid depreciating rupee, a tick-up in oil prices, and weak cues from global markets. Nifty ended below psychological mark of 10,050. Selling was visible across all sectors, largely in Nifty PVT Bank, Nifty IT and Nifty Bank. The index made a negative start, as traders remain concerned with the Controller General of Accounts’ (CGA) data showing that the fiscal deficit of the Central government has widened in the first half of 2018-19 to 95.3% of the Budget Estimate (BE), mainly on account of slow growth in revenue collections. Market participants took note of India ratings’ report that the rupee may average at 69.79 to the dollar in the second half, down 8.3% from the first half if the monetary authority props it up by mobilising at least $30 billion from NRIs as it has done in 2013.

However, in the afternoon session market pared most of its losses, as investors took a note of the NASSCOM’s report that Indian startups has registered a 108 percent growth in total funding to $4.2 billion in 2018 as compared to $2 billion in previous year. But, Nifty failed to trim all its losses and remained in the red zone, as investors were cautious with a private report stating that India’s tight money conditions and fears of a contagion following a debt crisis at a local lender dented demand and put a muzzle on animal spirits in the world’s fastest-growing major economy.

All the sectoral indices ended in red on the NSE. The top gainers from the F&O segment were InterGlobe Raymond, Dish TV India and CEAT. On the other hand, the top losers were Equitas Holdings, Ujjivan Financial Services and Yes Bank. 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 increased by 1.42% and reached 19.23. The 50-share Nifty was down by 94.90 points or 0.94% to settle at 10,030.00.

Nifty November 2018 futures closed at 10054.10 on Friday, at a premium of 24.10 points over spot closing of 10030.00, while Nifty December 2018 futures ended at 10097.60, at a premium of 67.60 points over spot closing. Nifty November futures saw an addition of 0.76 million (mn) units, taking the total outstanding open interest (OI) to 22.14 mn units. The near month derivatives contract will expire on November 29, 2018.

From the most active contracts, Yes Bank November 2018 futures traded at a premium of 0.40 points at 181.60 compared with spot closing of 181.20. The numbers of contracts traded were 51,891.

Reliance Industries November 2018 futures traded at a premium of 5.40 points at 1047.85 compared with spot closing of 1042.45. The numbers of contracts traded were 44,396.

Bajaj Finance November 2018 futures traded at a premium of 13.45 points at 2336.45 compared with spot closing of 2323.00. The numbers of contracts traded were 35,921.

Indiabulls Housing Finance November 2018 futures traded at a premium of 0.45 points at 687.45 compared with spot closing of 687.00. The numbers of contracts traded were 30,307.

Tata Motors November 2018 futures traded at a premium of 1.60 points at 169.40 compared with spot closing of 167.80. The numbers of contracts traded were 22,488. 

Among Nifty calls, 10500 SP from the November month expiry was the most active call with an addition of 0.31 million open interests. Among Nifty puts, 10,000 SP from the November month expiry was the most active put with an addition of 0.33 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (2.39mn) and that for Puts was at 10,000 SP (3.40mn). The respective Support and Resistance levels of Nifty are: Resistance 10,104.38 ---- Pivot Point 10,054.47 --- Support --- 9,980.08.

The Nifty Put Call Ratio (PCR) finally stood at 1.30 for November month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.98), SREI Infrastructure Finance (2.52), Godrej Industries (2.30), Cholamandalam Investment and Fin (2.14) and Ajanta Pharma (2.13).

Among most active underlying, Reliance Industries witnessed an addition of 0.55 million units of Open Interest in the November month futures contract, followed by ICICI Bank witnessing an addition of 3.20 million units of Open Interest in the November month contract, Yes Bank witnessed an addition of 6.27 million units of Open Interest in the November month contract, ITC witnessed an addition of 0.88 million units of Open Interest in the November month contract and Bajaj Finance witnessed a contraction of 0.12 million units of Open Interest in the November month future contract.