After spending most of the day in green zone, key equity benchmark --Nifty--closed the trading session in negative zone, extending its fall for sixth session. After making a cautious start, index gained momentum and traded in fine fettle, as traders took encouragement with NITI Aayog vice chairman Rajiv Kumar’s statement that the government expects economy to grow by 6.5% in the current fiscal and that all efforts were focused on bringing India to a higher growth trajectory. Investors also took some comfort from Finance Ministry’s statement that the Reserve Bank's decision to lower benchmark lending rate will complement recent measures taken by the government to accelerate growth.
However, the barometer erased all of its gain to turn negative in the last leg of the session, as market-men got anxious with the RBI’s survey showing that the consumer sentiment declined further, and people are less optimistic about their income to rise over the year ahead. The consumer confidence in September registered a steep fall to 89.4 from 95.7 in July this year. The consumer confidence has touched the lowest level in at least the last six years. Traders paid no heed towards India Inc’s statement that the reduction in key policy rate by the RBI is expected to revive investment and encourage consumption, thereby kick-starting the sluggish economy.
Most of the NSE sectoral indices ended in red, except Bank, Media and PVT Bank. The top gainers from the F&O segment Yes Bank, Zee Entertainment Enterprises and Shriram Transport Finance. On the other hand, the top losers were Aurobindo Pharma, Glenmark Pharmaceuticals and NCC. In the index option segment, maximum OI continues to be seen in the 11800 - 12,200 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 1.57% and reached 17.85.The 50 share Nifty was down by 48.35 points or 0.43% to settle at 11,126.40.
Nifty October 2019 futures closed at 11,151.00 (LTP) on Monday, at a premium of 24.60 points over spot closing of 11,126.40, while Nifty November 2019 futures ended at 11,200.00 (LTP), at a premium of 73.60 points over spot closing (Provisional).Nifty October futures saw an addition of 0.37 million (mn) units, taking the total outstanding open interest (OI) to 15.85 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 0.10 points at 45.45 (LTP) compared with spot closing of 45.35. The numbers of contracts traded were 70,663 (Provisional).
Aurobindo Pharma October 2019 futures traded at a premium of 1.95 points at 453.65 (LTP) compared with spot closing of 451.70. The numbers of contracts traded were 42,148 (Provisional).
Zee Entertainment Enterprises October 2019 futures traded at a premium of 0.50 points at 250.65 (LTP) compared with spot closing of 250.15. The numbers of contracts traded were 39,517 (Provisional).
HDFC Bank October 2019 futures traded at a premium of 6.45 points at 1191.00 (LTP) compared with spot closing of 1184.55. The numbers of contracts traded were 32,246 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 10.75 points at 225.25 (LTP) compared with spot closing of 236.00. The numbers of contracts traded were 28,558 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with an addition of 0.007 million open interests. Among Nifty puts, 11,000 from the October month expiry was the most active put with an addition of 0.30 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.56 mn) and that for Puts was at 11,000 SP (2.74 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,202.62 -- Pivot Point 11,157.63 -- Support -- 11,081.42.
The Nifty Put Call Ratio (PCR) finally stood at 0.86 for October month contract. The top five scrips with highest PCR on Bosch (14.67), Torrent Pharmaceuticals (2.25), Cummins India (2.04), MRF (2.00) and Zee Entertainment Enterprises (1.11).
Among most active underlying, State Bank of India witnessed an addition of 1.71 million units of Open Interest in the October month futures contract, followed by Aurobindo Pharma witnessing an addition of 4.65 million units of Open Interest in the October month contract, HDFC Bank witnessed an addition of 0.94 million units of Open Interest in the October month contract, Axis Bank witnessed an addition of 2.58 million units of Open Interest in the October month contract and Bharat Petroleum Corporation witnessed an addition of 1.02 million units of Open Interest in the October month future contract (Provisional).
