Barometer 50 share index - CNX Nifty extended its bull run for the third straight session on Tuesday by ending the day’s trade above its crucial 11400 mark. Market made a positive start and continued its north-ward journey as, sentiment got a boost with Minister of State for Finance Anurag Thakur’s statement that Indian economy is structurally and fundamentally very strong and the current slowdown, which is cyclical in nature, would not affect it much. He also exuded confidence that India would achieve the target of becoming $5 trillion economy by 2024-25. Some strength also came with Commerce and Industry Minister Piyush Goyal’s statement that the recent economic slowdown is a cyclic structural adjustment and it is the right time to invest in India before growth bounces back.
Market extended their gains in the second half of the trade as, traders took encouragement with Finance Ministry’s statement that loans worth Rs 81,781 crore were disbursed during the nine-day outreach programme or loan mela organized by banks that began on October 1. Some more comfort added to the market with Commerce Minister Piyush Goyal’s statement that India does not have any trade disputes with the US, and there is huge bilateral trade potential. He also said that a little uncertainty in any relation is also good for having healthy bilateral relations. Traders shrugged off data released by the Central Statistics Office (CSO) showing that India's retail inflation rate grew 3.99% in September which is very close to the Reserve Bank of India's (RBI) target level of 4%. The retail inflation for August was 3.21%.
Most of the NSE sectoral indices ended in green, except IT. The top gainers from the F&O segment Adani Enterprises, Strides Pharma Science and Eicher Motors. On the other hand, the top losers were Indiabulls Housing Finance, Just Dial and Vodafone Idea. 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 decreased by 3.33% and reached 16.85.The 50 share Nifty was up by 87.15 points or 0.77% to settle at 11,428.30.
Nifty October 2019 futures closed at 11440.90 on (LTP) Tuesday, at a premium of 12.60 points over spot closing of 11428.30 (LTP), while Nifty November 2019 futures ended at 11482.00, at a premium of 53.70 points over spot closing (Provisional).Nifty October futures saw an addition of 0.96 million (mn) units, taking the total outstanding open interest (OI) to 15.34 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 0.15 points at 40.95 compared with spot closing of 40.80. The numbers of contracts traded were 43,052 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 7.95 points at 179.55 (LTP) compared with spot closing of 187.50. The numbers of contracts traded were 39,482 (Provisional).
RBL Bank October 2019 futures traded at a premium of 0.90 points at 265.90 (LTP) compared with spot closing of 265.00. The numbers of contracts traded were 35,814 (Provisional).
Tata Steel October 2019 futures traded at a premium of 0.85 points at 350.05 (LTP) compared with spot closing of 349.20. The numbers of contracts traded were 26,879 (Provisional).
Hindustan Unilever October 2019 futures traded at a discount of 5.90 points at 2054.15 (LTP) compared with spot closing of 2060.05. The numbers of contracts traded were 24,057 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with a contraction of 0.17 million open interests. Among Nifty puts, 11,300 from the October month expiry was the most active put with an addition of 0.31 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.41 mn) and that for Puts was at 11,000 SP (3.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,479.73 -- Pivot Point 11,410.92 -- Support -- 11,359.48.
The Nifty Put Call Ratio (PCR) finally stood at 1.03 for October month contract. The top five scrips with highest PCR on Bosch (4.50), Cummins India (1.91), Torrent Pharmaceuticals (1.28), Bajaj Finance (1.27) and DLF (1.25).
Among most active underlying, Infosys witnessed an addition of 6.26 million units of Open Interest in the October month futures contract, followed by Hindustan Unilever witnessing an addition of 0.44 million units of Open Interest in the October month contract, State Bank of India witnessed an addition of 1.29 million units of Open Interest in the October month contract, Maruti Suzuki India witnessed an addition of 0.24 million units of Open Interest in the October month contract and Reliance Industries witnessed an addition of 0.67 million units of Open Interest in the October month future contract (Provisional).
