Nifty ends at intraday high level; reclaims 10,250 mark

Bulls made strong comeback on D-Street with Nifty ending its Monday’s trading session on a optimistic note. The 50-scrip NSE benchmark index, Nifty, climbed over 10,250 level, led by intense buying among Pharma, PSU banks and IT stocks. The barometer made a positive start, as market participates took encouragement with RBI’s statement that it will inject Rs 400 billion into the system in November through a purchase of government securities as it looks to meet festive season demand for funds. Traders remained optimistic with Union Minister of Commerce and Industry and Civil Aviation Suresh Prabhu’s statement that country’s exports rose by 9.8% in the financial year 2017-18, which is the highest rate of growth in last six years. He added that this positive growth in exports has taken place at a time when there is a lot of negative headwinds globally.

Market continued their rally to reach at fresh intraday high points in last trading hours, as the domestic sentiments remained upbeat with a private report that the global economy is expected to achieve an annual GDP growth rate, as measured in constant dollars, of 3.7% between 2018-2020 before dipping to 3.6% between 2021-2023 and, in turn, pass the $100 trillion mark around 2022. Investor took note of the Prime Minister's Economic Advisory Council (PMEAC) Chairman Bibek Debroy’s statement that the four-rate slab structure of the Goods and Services Tax (GST) regime is likely to be reduced to three as the process of rationalising India's new indirect tax regime proceeds further.

All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment were Adani Power, Divi's Laboratories and Tata Power Company. On the other hand, the top losers were Infibeam Avenues, Equitas Holdings and Dalmia Bharat. 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 3.08% and reached 19.82. The 50-share Nifty was up by 220.85 points or 2.20% to settle at 10,250.85.

Nifty November 2018 futures closed at 10283.95 on Monday, at a premium of 33.10 points over spot closing of 10250.85, while Nifty December 2018 futures ended at 10329.90, at a premium of 79.05 points over spot closing. Nifty November futures saw a contraction of 0.06 million (mn) units, taking the total outstanding open interest (OI) to 22.08 mn units. The near month derivatives contract will expire on November 29, 2018.

From the most active contracts, ICICI Bank November 2018 futures traded at a discount of 0.90 points at 350.55 compared with spot closing of 351.45. The numbers of contracts traded were 56,778.

Reliance Industries November 2018 futures traded at a premium of 2.80 points at 1091.80 compared with spot closing of 1089.00. The numbers of contracts traded were 40,012.

HDFC Bank November 2018 futures traded at a premium of 2.40 points at 1932.30 compared with spot closing of 1929.90. The numbers of contracts traded were 38,328.

Yes Bank November 2018 futures traded at a premium of 1.45 points at 182.25 compared with spot closing of 180.80. The numbers of contracts traded were 29,420.

State Bank of India November 2018 futures traded at a premium of 1.45 points at 268.95 compared with spot closing of 267.50. The numbers of contracts traded were 28,883.

The maximum OI outstanding for Calls was at 11,000 SP (2.17mn) and that for Puts was at 10,000 SP (3.88mn). The respective Support and Resistance levels of Nifty are: Resistance 10,343.98 ---- Pivot Point 10,182.17 --- Support --- 10,089.03.

The Nifty Put Call Ratio (PCR) finally stood at 1.43 for November month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.60), Godrej Industries (2.06), SREI Infrastructure Finance (1.82), Ajanta Pharma (1.71) and SRF (1.62).

Among most active underlying, ICICI Bank witnessed an addition of 7.54 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing a contraction of 0.96 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 1.13 million units of Open Interest in the November month contract, CESC witnessed a contraction of 1.14 million units of Open Interest in the November month contract and HDFC Bank witnessed a contraction of 1.01 million units of Open Interest in the November month future contract.