September series F&O ends on optimistic note; Nifty surpasses 11,550 mark

Last day of trade for September F&O series turned out to be a fabulous session and Nifty virtually ended the Thursday’s trade with gain of over a percentage point as investors cheered US President Donald Trump hinting at a possible China-US trade deal. Market made a positive start and gained traction as traders remained optimistic with report that easing the regulatory framework for foreign portfolio investors, SEBI has simplified KYC requirements for them and permitted them to carry out the off-market transfer of securities. Besides, the regulator has broad-based the classification for foreign portfolio investors (FPIs) and simplified their registration process. Sentiment was also buoyed as the Employees' State Insurance Corporation’s (ESIC) latest payroll data showing that around 14.24 lakh jobs were created in July, higher than 12.49 lakh in the previous month. However, some gains got trimmed as the market came under some selling pressure in afternoon session as traders got discouraged with a report that the United Nations Conference on Trade and Development (UNCTAD) has forecasted India’s growth to moderate to 6% in 2019 from 7.4% in 2018 due to lower-than-targeted tax collections and limited public spending.

However, bulls came back on the street with Union minister Som Parkash’s statement that the Centre is determined to bring economic growth to 7-8% at the earliest, asserting that the government has taken many steps to boost the economy. The markets took support from the a private report stating that the Indian economy is expected to start its recovery from later part of this fiscal thanks to the initiatives taken by the Reserve Bank for policy rate transmission and steps by the government to boost growth.

All the sectoral indices ended in green on the NSE except IT. The top gainers from the F&O segment were Vedanta, Hindustan Zinc and NMDC. On the other hand, the top losers were Dewan Housing Finance Corporation, Reliance Capital and Arvind. In the index option segment, maximum OI continues to be seen in the 11,100-11,400 calls and 10,900 -11,200 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 1.07% and reached 16.34. The 50-share Nifty was up by 131.00 points or 1.15% to settle at 11571.20.

Among, Nifty calls, 12,000 SP from the October month expiry was the most active call with an addition of 0.11 million open interests. Among Nifty puts, 11,500 from the October month expiry was the most active put with an addition of 0.21 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (1.73 mn) and that for Puts was at 11,000 SP (1.72 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,632.58 -- Pivot Point 11,549.47 -- Support -- 11,488.08.

The Nifty Put Call Ratio (PCR) finally stood at 1.01 for October month contract. The top five scrips with highest PCR on Bosch (18.00), Cummins India (3.23), Tata Motors (3.04), MRF (2.00) and Justdial (1.71).

Among most active underlying, State Bank of India witnessed an addition of 27.60 million units of Open Interest in the October month futures contract, followed by Reliance Industries witnessing an addition of 5.75 million units of Open Interest in the October month contract, ICICI Bank witnessed an addition of 18.48 million units of Open Interest in the October month contract, Axis Bank witnessed an addition of 10.44 million units of Open Interest in the October month contract and HDFC Bank witnessed an addition of 5.95 million units of Open Interest in the October month future contract. (Provisional)