After witnessing drubbing in the previous sessions, domestic index, Nifty heaved a sigh of relief by settling with gains of over half a percent. Market started the day’s trade on positive note, as traders took encouragement with Union Finance Minister Nirmala Sitharaman’s statement that the government is giving sector-specific solutions to fight the slowdown in economic growth. Hinting at other measures like steps to improve exports, easing credit, making more money available by early repayments to vendors and front-loading of banks recapitalisation, Sitharaman said the government has been working on sector-specific measures. Adding some more support with EEPC India’s analysis report showing that India's engineering exports to China have gone up by an annualised 58 per cent in August, 2019, bucking the trend of drop in overall exports to the world market.
However, in volatile session of the trade market erased some of its gains with the report that India Ratings and Research (Ind-Ra) slashing the country’s gross domestic product (GDP) forecast for current fiscal year (FY20) to 6.1% for the second time in two months. Recently, the rating agency had revised its GDP growth estimate to 6.7% in August from of 7.3% in forecasted earlier. In the last leg of trade, market gained traction as, market participants took a note of reports that India jumped two levels to 7th position in the Brand Finance Nation ranking of 2019 despite the reduction in the overall economic growth due to slowdown in the manufacturing and construction sectors.
Most of the NSE sectoral indices ended in green, except Media and PVT Bank. The top gainers from the F&O segment Cipla, Indiabulls Housing Finance and Infosys. On the other hand, the top losers were RBL Bank, Aurobindo Pharma and Indian Oil Corporation. In the index option segment, maximum OI continues to be seen in the 11200 - 11,700 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 0.51% and reached 17.14.The 50 share Nifty was up by 70.50 points or 0.63% to settle at 11,305.05.
Nifty October 2019 futures closed at 11318.00 (LTP) on Friday, at a premium of 12.95 points over spot closing of 11305.05, while Nifty November 2019 futures ended at 11363.10 (LTP), at a premium of 58.05 points over spot closing (Provisional). Nifty October futures saw an addition of 0.83 million (mn) units, taking the total outstanding open interest (OI) to 15.39 mn units. The near month derivatives contract will expire on October 31, 2019 (Provisional).
From the most active contracts, Indiabulls Housing Finance October 2019 futures traded at a discount of 4.25 points at 199.15 (LTP) compared with spot closing of 203.40. The numbers of contracts traded were 73,519 (Provisional).
Yes Bank October 2019 futures traded at a premium of 0.10 points at 39.85 (LTP) compared with spot closing of 39.75. The numbers of contracts traded were 66,031(Provisional).
Tata Consultancy Services October 2019 futures traded at a discount of 37.00 points at 1952.00 (LTP) compared with spot closing of 1989.00. The numbers of contracts traded were 51,782 (Provisional).
IndusInd Bank October 2019 futures traded at a premium of 3.05 points at 1230.05 (LTP) compared with spot closing of 1227.00. The numbers of contracts traded were 50,967 (Provisional).
RBL Bank October 2019 futures traded at a premium of 0.70 points at 265.50 (LTP) compared with spot closing of 264.80. The numbers of contracts traded were 32,855 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with a contraction of 0.009 million open interests. Among Nifty puts, 11,000 from the October month expiry was the most active put with an addition of 0.13 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.39 mn) and that for Puts was at 11,000 SP (2.71 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,382.17 -- Pivot Point 11,285.78 -- Support -- 11,208.67.
The Nifty Put Call Ratio (PCR) finally stood at 0.96 for October month contract. The top five scrips with highest PCR on Bosch (7.17), Cummins India (1.96), Torrent Pharmaceuticals (1.27), Equitas Holdings (1.24) and DLF (1.10).
Among most active underlying, Tata Consultancy Services witnessed an addition of 1.38 million units of Open Interest in the October month futures contract, followed by Infosys witnessing an addition of 4.81 million units of Open Interest in the October month contract, State Bank of India witnessed an addition of 3.79 million units of Open Interest in the October month contract, IndusInd Bank witnessed an addition of 0.74 million units of Open Interest in the October month contract and Reliance Industries witnessed an addition of 1.04 million units of Open Interest in the October month future contract (Provisional).
