Nifty ends higher; surpasses 10,650 level

Surpassing crucial psychological level of 10,650, Key equity benchmark -- Nifty -- ended last day of the trading week in green trajectory. The index made a positive start as traders took encouragement with a report highlighting that India’s exports rose by 17.86% to $26.98 billion in October 2018 as compared to $22.89 Billion in October 2017. Exports bounced back in October to high double-digit figures after the mild contraction in September as engineering goods, pharmaceutical and chemical shipments picked up the pace. Market participants remained enthusiastic with Fitch’s report stating that India’s real GDP growth is expected to be at 7.8% in FY19, up from 6.7% in FY18 even as the government may find it tough to meet its fiscal deficit target of 3.3%.

Market sentiments also got encouraged with a private report stating that with bilateral trade between India and the South American country Peru touching an all-time high of $1.60 billion, the next round of talks for the free trade agreement (FTA) between the two countries is scheduled to take place next month. Investors took note of a Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek’s statement that the government will soon unveil a new industrial policy which may include a dedicated chapter on the importance of design.

All the sectoral indices ended in green on the NSE except metal and PVT Bank. The top gainers from the F&O segment were Vodafone Idea, Bharti Airtel and Jet Airways (India). On the other hand, the top losers were Infibeam Avenues, Dewan Housing Finance Corporation and Reliance Infrastructure. In the index option segment, maximum OI continues to be seen in the 10,700-11,100 calls and 9800 -10,200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.57% and reached 18.35. The 50-share Nifty was up by 65.50 points or 0.62% to settle at 10,682.20.

Nifty November 2018 futures closed at 10687.25 on Friday, at a premium of 5.05 points over spot closing of 10682.20, while Nifty December 2018 futures ended at 10726.15, at a premium of 43.95 points over spot closing. Nifty November futures saw an addition of 0.57 million (mn) units, taking the total outstanding open interest (OI) to 24.24 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 discount of 0.65 points at 191.85 compared with spot closing of 192.50. The numbers of contracts traded were 60,968.

Reliance Industries November 2018 futures traded at a premium of 2.05 points at 1127.05 compared with spot closing of 1125.00. The numbers of contracts traded were 40,079.

Indiabulls Housing Finance November 2018 futures traded at a premium of 2.50 points at 767.50 compared with spot closing of 765.00. The numbers of contracts traded were 26,919.

HDFC Bank November 2018 futures traded at a premium of 1.95 points at 2004.75 compared with spot closing of 2002.80. The numbers of contracts traded were 25,807.

Axis Bank November 2018 futures traded at a premium of 1.35 points at 618.90 compared with spot closing of 617.55. The numbers of contracts traded were 22,769. 

Among Nifty calls, 10700 SP from the November month expiry was the most active call with a contraction of 0.004 million open interests. Among Nifty puts, 10,600 SP from the November month expiry was the most active put with an addition of 0.36 million open interests. The maximum OI outstanding for Calls was at 10,800 SP (3.41mn) and that for Puts was at 10,000 SP (4.72mn). The respective Support and Resistance levels of Nifty are: Resistance 10,707.85 ---- Pivot Point 10,669.50 --- Support --- 10,643.85.

The Nifty Put Call Ratio (PCR) finally stood at 1.56 for November month contract. The top five scrips with highest PCR on OI were Adani Power (2.03), IDBI (1.86), UPL (1.48), Jet Airways (India) (1.30) and Asian Paints (1.27).

Among most active underlying, Reliance Industries witnessed a contraction of 1.17 million units of Open Interest in the November month futures contract, followed by ICICI Bank witnessing a contraction of 4.17 million units of Open Interest in the November month contract, Yes Bank witnessed an addition of 10.29 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 1.88 million units of Open Interest in the November month contract and Axis Bank witnessed a contraction of 0.69 million units of Open Interest in the November month future contract.