Indian equity benchmark Nifty extended losses for the fourth straight session on Thursday and ended the day trade below its crucial 11,350 mark as domestic sentiments remained cautious ahead of the RBI policy decision due tomorrow. Market made a gap-down opening and continued its down move, as investors sentiment dented with the finance ministry’s data showing that Goods and services tax (GST) collection fell to a 19-month low of Rs 91,916 crore in September, pointing to a deepening economic slowdown. It is the second straight month when the collection has fallen below the Rs 1-trillion mark. Traders were concerned with report that S&P Global Ratings in its quarterly report on the Asia-Pacific region has slashed India’s Gross Domestic Product (GDP) growth projection to 6.3% for the current financial year (FY20) from 7.1% forecasted earlier, amid decline in private consumption.
However, market trimmed its losses in the afternoon session as traders took some support with DPIIT Secretary Guruprasad Mohapatra’s statement that with a strong policy driven government at the Centre, favourable conditions exist in India to achieve the target of $5 trillion economy by 2024. Anxiety remained among investors with report that the Finance Ministry made it clear that companies opting for a lower tax of 22% will not be eligible for accumulated additional depreciation and Minimum Alternative Tax (MAT) credit. Traders paid no heed towards Finance Minister Nirmala Sitharaman’s statement that the Insolvency and Bankruptcy Code has improved business climate in the country by making it easier for enterprises to exit in case of difficulties.
Most of the NSE sectoral indices ended in red, except Auto, Media and PSU Bank. The top gainers from the F&O segment Yes Bank, Dish TV India and Bharat Petroleum Corporation. On the other hand, the top losers were Piramal Enterprises, Motherson Sumi Systems and Vedanta. In the index option segment, maximum OI continues to be seen in the 11400 - 11,800 calls and 10,700 - 11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 5.64% and reached 17.70.The 50 share Nifty was down by 45.90 points or 0.40% to settle at 11,314.00.
Nifty October 2019 futures closed at 11361.90 last trading price (LTP) on Thursday, at a premium of 47.90 points over spot closing of 11314.00, while Nifty November 2019 futures ended at 11405.50 (LTP), at a premium of 91.50 points over spot closing (Provisional). Nifty October futures saw an addition of 0.81 million (mn) units, taking the total outstanding open interest (OI) to 16.29 mn units. The near month derivatives contract will expire on October 31, 2019 (Provisional).
From the most active contracts, Yes Bank October 2019 futures traded at a premium of 0.25 points at 43.00 (LTP) compared with spot closing of 42.75. The numbers of contracts traded were 1,32,283 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 9.05 points at 251.50 (LTP) compared with spot closing of 260.55. The numbers of contracts traded were 43,163 (Provisional).
IndusInd Bank October 2019 futures traded at a premium of 9.10 points at 1267.10 (LTP) compared with spot closing of 1258.00. The numbers of contracts traded were 41,487 (Provisional).
State Bank of India October 2019 futures traded at a premium of 1.65 points at 257.00 (LTP) compared with spot closing of 255.35. The numbers of contracts traded were 31,355 (Provisional).
RBL Bank October 2019 futures traded at a discount of 0.40 points at 311.10 (LTP) compared with spot closing of 311.50. The numbers of contracts traded were 27,226 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with an addition of 0.26 million open interests. Among Nifty puts, 11,000 from the October month expiry was the most active put with a contraction of 0.26 million open interests. The maximum OI outstanding for Calls was at 11,500 SP (2.32 mn) and that for Puts was at 11,000 SP (2.28 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,370.48 -- Pivot Point 11,313.92 -- Support -- 11,257.43.
The Nifty Put Call Ratio (PCR) finally stood at 0.93 for October month contract. The top five scrips with highest PCR on Bosch (13.67), MRF (3.00), Torrent Pharmaceuticals (1.71), Cummins India (1.47) and Just Dial (1.25).
Among most active underlying, State Bank of India witnessed an addition of 7.66 million units of Open Interest in the October month futures contract, followed by Bharat Petroleum Corporation witnessing an addition of 2.25 million units of Open Interest in the October month contract, IndusInd Bank witnessed an addition of 1.62 million units of Open Interest in the October month contract, Axis Bank witnessed an addition of 4.37 million units of Open Interest in the October month contract and HDFC Bank witnessed an addition of 2.22 million units of Open Interest in the October month future contract. (Provisional)
