Nifty ends in green zone; climbs over 10,750 level

Nifty barometer Nifty 50 rallied on first day of the trading week, amid foreign fund inflows. The barometer climbed over 10,750 level as investors widened their portfolios ahead of the RBI's board meet outcome. Market made an optimistic start as investors took some support with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that the government has made a huge progress in implementing reforms including some difficult structural ones such as the Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC) that previous governments had difficulty in introducing. Investors took note of report stating that the government may push the Reserve Bank of India (RBI) to allow more active participation by government nominees to the central board in the decision-making process and keep them informed about key regulatory issues.

Buying remained a persistent activity across all sectors as investors took some encouragement with a report stating that foreign investors have pumped in nearly Rs 8,285 crore into the Indian capital markets so far this month, after pulling out hefty funds in October, due to fall in crude oil prices, recovery in rupee and improvement in the liquidity situation. The recent infusion comes following a net outflow of more than Rs 38,900 crore in October, which was the steepest withdrawal in nearly two years. Market participants remained enthusiastic with Commerce and Industry Minister Suresh Prabhu’s statement that the development of industrial park rating system would help increase competitiveness of industries and promotion of the manufacturing sector.

All the sectoral indices ended in green on the NSE except PSU Bank and Fin Service. The top gainers from the F&O segment were Yes Bank, Reliance Infrastructure and CG Power and Industrial Solutions. On the other hand, the top losers were Jet Airways (India), Siemens and Indiabulls Housing Finance. 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 increased by 4.93% and reached 19.25. The 50-share Nifty was up by 81.20 points or 0.76% to settle at 10,763.40.

Nifty November 2018 futures closed at 10768.15 on Monday, at a premium of 4.75 points over spot closing of 10763.40, while Nifty December 2018 futures ended at 10802.55, at a premium of 39.15 points over spot closing. Nifty November futures saw an addition of 0.53 million (mn) units, taking the total outstanding open interest (OI) to 24.77 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 205.30 compared with spot closing of 205.95. The numbers of contracts traded were 43,079.

Reliance Industries November 2018 futures traded flat at 1149.65 compared with spot closing of 1149.65. The numbers of contracts traded were 27,840.

Jet Airways (India) November 2018 futures traded at a discount of 4.55 points at 317.95 compared with spot closing of 322.50. The numbers of contracts traded were 19,880.

HDFC Bank November 2018 futures traded at a discount of 1.70 points at 2014.40 compared with spot closing of 2016.10. The numbers of contracts traded were 17,862.

Indiabulls Housing Finance November 2018 futures traded at a discount of 3.35 points at 736.65 compared with spot closing of 740.00. The numbers of contracts traded were 16,047.

Among Nifty calls, 10800 SP from the November month expiry was the most active call with a contraction of 0.002 million open interests. Among Nifty puts, 10,700 SP from the November month expiry was the most active put with an addition of 1.10 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.42mn) and that for Puts was at 10,000 SP (4.69mn). The respective Support and Resistance levels of Nifty are: Resistance 10,795.80 ---- Pivot Point 10,742.30 --- Support --- 10,709.90.

The Nifty Put Call Ratio (PCR) finally stood at 1.67 for November month contract. The top five scrips with highest PCR on OI were Adani Power (1.94), IDBI (1.82), Jet Airways (India) (1.53), UPL (1.53) and Pidilite Industries (1.30).

Among most active underlying, Reliance Industries witnessed a contraction of 0.62 million units of Open Interest in the November month futures contract, followed by Yes Bank witnessing a contraction of 4.09 million units of Open Interest in the November month contract, ICICI Bank witnessed a contraction of 1.80 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 2.39 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed a contraction of 0.002  million units of Open Interest in the November month future contract.