Indian equity benchmark Nifty ended higher on Monday, holding its crucial 11,300 level. Market made a positive start as sentiments got support with report that the country's foreign exchange reserves surged by $4.24 billion to touch a record high of $437.83 billion in the week to October 4. Besides, Indian rupee strengthened against the US dollar due to progress in the Sino-US trade talks, adding some optimism among the investors. Traders’ mood remained up-beat as India and China decided to set up a ministerial-level mechanism to resolve issues relating to trade, investment and services. Some comfort also came in with a report that a high-level panel constituted by the government to suggest measures to augment GST revenue collection will hold its first meeting on October 15.
Second half of trade continued in green zone and touched the intraday high point as local investors cheered with a monthly survey report which showed that Wholesale prices based inflation eased to 0.33 per cent in September, as against 1.08 per cent in August due to fall in prices of non-food articles. The annual rate of inflation, based on monthly WPI, was at 5.22 per cent in September 2018. However, market trimmed their most of the gains in the last leg of trade but managed to keep its head above neutral line as, some mild weakness came with World Bank’s report that after a broad-based deceleration in the initial quarters of this fiscal, India’s growth rate is projected to fall to 6% in 2019-20, in what was the sharpest downward revisions of its growth projections for South Asian countries.
Most of the NSE sectoral indices ended in green, except IT and PSU Bank. The top gainers from the F&O segment Adani Enterprises, DLF and Vodafone Idea. On the other hand, the top losers were Indiabulls Housing Finance, RBL Bank and Infosys. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 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 1.69% and reached 17.43.The 50 share Nifty was up by 36.10 points or 0.32% to settle at 11,341.15.
Nifty October 2019 futures closed at 11328.50 on (LTP) Monday, at a discount of 12.65 points over spot closing of 11341.15, while Nifty November 2019 futures ended at 11375.00 (LTP), at a premium of 33.85 points over spot closing (Provisional). Nifty October futures saw an addition of 0.50 million (mn) units, taking the total outstanding open interest (OI) to 15.25 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 flat 40.45 with spot closing of 40.45. The numbers of contracts traded were 47,765 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 6.60 points at 189.00 (LTP) compared with spot closing of 195.60. The numbers of contracts traded were 38,065 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 0.35 points at 427.95 (LTP) compared with spot closing of 427.60. The numbers of contracts traded were 23,488 (Provisional).
RBL Bank October 2019 futures traded at a premium of 1.85 points at 258.00 (LTP) compared with spot closing of 256.15. The numbers of contracts traded were 22,782 (Provisional).
Tata Motors October 2019 futures traded at a premium of 0.60 points at 128.00 (LTP) compared with spot closing of 127.40. The numbers of contracts traded were 22,682 (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, 11,300 from the October month expiry was the most active put with an addition of 0.22 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.49 mn) and that for Puts was at 11,000 SP (3.06 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,411.05 -- Pivot Point 11,350.55 -- Support -- 11,280.65.
The Nifty Put Call Ratio (PCR) finally stood at 0.97 for October month contract. The top five scrips with highest PCR on Bosch (4.30), Cummins India (1.85), DLF (1.23), Equitas Holdings (1.18) and Torrent Pharmaceuticals (1.15).
Among most active underlying, Infosys witnessed an addition of 2.57 million units of Open Interest in the October month futures contract, followed by State Bank of India witnessing an addition of 1.54 million units of Open Interest in the October month contract, Tata Consultancy Services witnessed an addition of 0.04 million units of Open Interest in the October month contract, Reliance Industries witnessed an addition of 1.03 million units of Open Interest in the October month contract and Axis Bank witnessed an addition of 0.16 million units of Open Interest in the October month future contract (Provisional).
