Nifty slides on global sell-off; posts 0.50% loss

Witnessing sell-off in the 2nd straight trading session, NSE barometer Nifty 50 closed Wednesday’s trading day on a lower note, following a continued selling in US equities amid concerns about global slowdown. Nifty posted a cut of around half a percent on heavy selling in frontline blue-chip stocks. Index made a cautious start as traders took note of domestic rating agency ICRA’s report stating that after the strong upswing in April-June quarter of current financial year (FY19), GDP growth for July-September quarter is expected to dip to 7.2 percent on account of sluggishness in agriculture and industry. Investors remained on sidelines with report that India's crude oil imports in October rose to their highest level in at least more than seven years. Crude imports in October climbed 10.5 per cent from a year earlier to 21.02 million tonnes.

Selling further crept in with a report stating that foreign investors continuing their selling spree in the September quarter, pulled out $900 million from the Indian equity market on widening current account deficit due to a surge in oil prices and depreciating rupee. Investors took note of a report that the government intends to impose higher penalties on companies if they fail to report cases of a data breach of Indian users to concerned authorities.

Traders were seen piling up positions in Pharma, Bank and Pvt Bank, while selling was witnessed in IT, Metal and Media. The top gainers from the F&O segment were Jaiprakash Associates, Dr. Reddy's Laboratories and Dalmia Bharat. On the other hand, the top losers were Tata Consultancy Services, Infosys and Power Grid Corporation of India. 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 1.18% and reached 19.55. The 50-share Nifty was down by 56.15 points or 0.53% to settle at 10,600.05.

Nifty November 2018 futures closed at 10621.60 on Wednesday, at a premium of 21.55 points over spot closing of 10600.05, while Nifty December 2018 futures ended at 10660.65, at a premium of 60.60 points over spot closing. Nifty November futures saw a contraction of 0.63 million (mn) units, taking the total outstanding open interest (OI) to 23.41 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 1.45 points at 1114.70 compared with spot closing of 1113.25. The numbers of contracts traded were 30,372.

Yes Bank November 2018 futures traded at a discount of 0.05 points at 198.35 compared with spot closing of 198.40. The numbers of contracts traded were 28,308.

Dr. Reddy's Laboratories November 2018 futures traded at a discount of 0.35 points at 2600.10 compared with spot closing of 2600.45. The numbers of contracts traded were 23,484.

ICICI Bank November 2018 futures traded at a premium of 0.90 points at 357.70 compared with spot closing of 356.80. The numbers of contracts traded were 20,374.

Indiabulls Housing Finance November 2018 futures traded at a premium of 3.10 points at 707.70 compared with spot closing of 704.60. The numbers of contracts traded were 19,182.

Among Nifty calls, 10700 SP from the November month expiry was the most active call with an addition of 0.51 million open interests. Among Nifty puts, 10,600 SP from the November month expiry was the most active put with an addition of 0.16 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.60mn) and that for Puts was at 10,000 SP (3.92mn). The respective Support and Resistance levels of Nifty are: Resistance 10,660.12 ---- Pivot Point 10,611.23 --- Support --- 10,551.17.

The Nifty Put Call Ratio (PCR) finally stood at 1.36 for November month contract. The top five scrips with highest PCR on OI were Adani Power (1.91), IDBI (1.82), Pidilite Industries (1.46), Jet Airways (India) (1.38) and Adani Ports and Special Economic Zone (1.30).

Among most active underlying, Reliance Industries witnessed a contraction of 0.79 million units of Open Interest in the November month futures contract, followed by ICICI Bank witnessing an addition of 0.31 million units of Open Interest in the November month contract, Dr. Reddy's Laboratories witnessed a contraction of 0.20 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 3.38 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed a contraction of 0.03 million units of Open Interest in the November month future contract.