Snapping 6-day losing streak, CNX Nifty staged a blockbuster performance on Wednesday with gaining more than one and half percent. Market made cautious start and traded near its neutral line as investors took some support with report that the Indian economy needs a boost and a slip in the fiscal deficit by 40 to 50 basis points will be a good trade-off if it propels demand. Traders took encouragement with World Bank’s report that in an era of slowing trade and growth, developing countries can achieve better outcomes for its people through reforms to boost their participation in global value chains.
Market continued bullish run to touch its intraday high point in the last leg of session as traders took note of a report that the Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi saw keen interest from foreign investors in emerging areas such as REITs and InvITs, which have a total asset size of more than $10 billion. Market participants overlooked new IMF chief Kristalina Georgieva’s statement that the global economy is witnessing “synchronized slowdown”, which will result in slower growth for 90 per cent of the world this year, and the effect is even “more pronounced” in some of the largest emerging market economies like India.
Most of the NSE sectoral indices ended in green, except IT. The top gainers from the F&O segment Vodafone Idea, NCC and Dish TV India. On the other hand, the top losers were Piramal Enterprises, Tata Elxsi and Yes Bank. In the index option segment, maximum OI continues to be seen in the 11000 - 11,500 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 decreased by 3.79% and reached 17.15.The 50 share Nifty was up by 186.90 points or 1.68% to settle at 11,313.30.
Nifty October 2019 futures closed at 11362.30 (LTP) on Wednesday, at a premium of 49.00 points over spot closing of 11313.30, while Nifty November 2019 futures ended at 11410.00 (LTP), at a premium of 96.70 points over spot closing (Provisional). Nifty October futures saw an addition of 0.60 million (mn) units, taking the total outstanding open interest (OI) to 16.13 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 43.55 (LTP) compared with spot closing of 43.30. The numbers of contracts traded were 77,941 (Provisional).
State Bank of India October 2019 futures traded at a premium of 0.65 points at 262.45 (LTP) compared with spot closing of 261.80. The numbers of contracts traded were 39,372 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 0.65 points at 437.15 (LTP) compared with spot closing of 436.50. The numbers of contracts traded were 38,534 (Provisional).
HDFC Bank October 2019 futures traded at a premium of 4.80 points at 1233.00 (LTP) compared with spot closing of 1228.20. The numbers of contracts traded were 29,376 (Provisional).
IndusInd Bank October 2019 futures traded at a premium of 6.90 points at 1316.40 (LTP) compared with spot closing of 1309.50. The numbers of contracts traded were 27,326 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with a contraction of 0.005 million open interests. Among Nifty puts, 11,000 from the October month expiry was the most active put with an addition of 0.009 million open interests. The maximum OI outstanding for Calls was at 11200 SP (2.74 mn) and that for Puts was at 11,000 SP (2.84 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,393.22 -- Pivot Point 11,241.68 -- Support -- 11,161.77.
The Nifty Put Call Ratio (PCR) finally stood at 0.97 for October month contract. The top five scrips with highest PCR on Bosch (14.33), Cummins India (2.00), Torrent Pharmaceuticals (1.59), Equitas Holdings (1.10) and DLF (1.10).
Among most active underlying, State Bank of India witnessed an addition of 0.58 million units of Open Interest in the October month futures contract, followed by Titan Company witnessing an addition of 0.70 million units of Open Interest in the October month contract, Reliance Industries witnessed an addition of 1.37 million units of Open Interest in the October month contract, ICICI Bank witnessed an addition of 1.08 million units of Open Interest in the October month contract and HDFC Bank witnessed a contraction of 0.03 million units of Open Interest in the October month future contract. (Provisional)
