Nifty ends in green terrain; surpasses 10,550 mark

Key equity benchmark -- Nifty -- ended in green terrain on last day of the trading week, with it moving past the 10,550 level amid cooling global crude prices, rising rupee and fresh flow of foreign funds. The index made an optimistic start as traders took some encouragement with finance minister Arun Jaitely’s statement that India’s target of being among the top 50 countries in World Bank’s Ease of Doing Business Rankings looks plausible. Traders remained energized with a report stating that monthly goods and services tax (GST) collections breached the Rs 1-lakh-crore mark for the second time since its launch in July last year for September, giving the Centre some hope that the wide revenue gap against its budget target could be narrowed in the second half of the fiscal.

However, market gave up some gains in last hour of trade, as market-men got anxious with report that leading stock exchange BSE will delist as many as nine companies from Monday as trading in their shares remained suspended for over 6 months. But Nifty ended on a positive note as traders remained optimistic with Labour Minister Santosh Kumar Gangwar’s statement said that as many as 10 million employees were added afresh to avail the benefits of Employees' State Insurance Corporation (ESIC) schemes and more than 10 million people came under the fold of the EPFO.

Traders were seen piling up positions in Auto, Metal and FMCG stocks, while selling was witnessed in IT, Media and Pharma. The top gainers from the F&O segment were PC Jeweller, Infibeam Avenues and BEML. On the other hand, the top losers were Punjab National Bank, Arvind and Torrent Pharmaceuticals. In the index option segment, maximum OI continues to be seen in the 10,500-10,800 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 5.01% and reached 18.23. The 50-share Nifty was up by 172.55 points or 1.66% to settle at 10,553.00.

Nifty November 2018 futures closed at 10577.05 on Friday, at a premium of 24.05 points over spot closing of 10553.00, while Nifty December 2018 futures ended at 10623.40, at a premium of 70.40 points over spot closing. Nifty November futures saw an addition of 0.59 million (mn) units, taking the total outstanding open interest (OI) to 23.60 mn units. The near month derivatives contract will expire on November 29, 2018.

From the most active contracts, Reliance Industries November 2018 futures traded at a premium of 5.70 points at 1079.70 compared with spot closing of 1074.00. The numbers of contracts traded were 51,259.

HDFC Bank November 2018 futures traded at a premium of 4.60 points at 1954.60 compared with spot closing of 1950.00. The numbers of contracts traded were 46,710.

Maruti Suzuki India November 2018 futures traded at a premium of 4.65 points at 7140.15 compared with spot closing of 7135.50. The numbers of contracts traded were 36,610.

Yes Bank November 2018 futures traded at a premium of 0.85 points at 209.85 compared with spot closing of 209.00. The numbers of contracts traded were 34,393.

Punjab National Bank November 2018 futures traded at a premium of 0.10 points at 69.05 compared with spot closing of 68.95. The numbers of contracts traded were 34,334.

Among Nifty calls, 10400 SP from the November month expiry was the most active call with a contraction of 0.29 million open interests. The maximum OI outstanding for Calls was at 10,700 SP (2.18mn) and that for Puts was at 10,000 SP (5.10mn). The respective Support and Resistance levels of Nifty are: Resistance 10,620.73 ---- Pivot Point 10,539.22 --- Support --- 10,471.48.

The Nifty Put Call Ratio (PCR) finally stood at 1.61 for November month contract. The top five scrips with highest PCR on OI were Adani Power (2.89), PC Jeweller (1.78), Godrej Industries (1.57), ACC (1.52) and Consumer Products (1.34).

Among most active underlying, Reliance Industries witnessed a contraction of 0.44 million units of Open Interest in the November month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.30 million units of Open Interest in the November month contract, HDFC Bank witnessed an addition of 1.23 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 2.85 million units of Open Interest in the November month contract and ICICI Bank witnessed a contraction of 4.84 million units of Open Interest in the November month future contract.