In a volatile trading session S&P CNX -- Nifty -- snapped Wednesday’s trade in positive terrain with a gain of over one third of a percent. Market made optimistic start with Reserve Bank data which showed India’s services exports rose by 10.4% to $18.24 billion in August in the current financial year. The services exports or receipts were $16.53 billion in the same month of 2018. It was at $19.08 billion in July this year. Some support also came with hopes of more interest rate cuts by the Reserve Bank of India (RBI). A private report stated that the RBI will continue to be accommodative and deliver one more rate cut in the December policy review despite the surprising spike in headline inflation for September.
However, in the late afternoon deals market came under selling pressure and turned into red, as some anxiety spread among the investors as tax officers expressed concerns over the faceless income tax assessment system initiated by the Central Board of Direct Taxes (CBDT), saying it will create procedural difficulties and may hit revenue collections. Traders also remained concerned with the International Monetary Fund (IMF) cutting India’s GDP growth projection for the year 2019 to 6.1%, which is 1.2% down from its April projections and noted that the Indian economy is expected to pick up the next year at 7.0 % in 2020. But soon market recovered from losses, as traders were taking support from World Bank’s report that India has halved its poverty rate since the 1990s and achieved a seven plus growth rate over the last 15 years. India is both critical to the success of global development efforts, including eliminating extreme poverty, and as an influential leader for global goods.
Traders were seen piling up positions in Realty, IT and Media, while selling was witnessed in Bank, Auto and FMGC. The top gainers from the F&O segment were Vodafone Idea, Bharat Petroleum Corporation and Ashok Leyland. On the other hand, the top losers were Indiabulls Housing Finance, Mahindra & Mahindra Financial Services and Torrent Pharmaceuticals. 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 2.91% and reached 16.36.The 50 share Nifty was up by 35.70 points or 0.31% to settle at 11,464.00.
Nifty October 2019 futures closed at 11483.60 on (LTP) Wednesday, at a premium of 19.60 points over spot closing of 11464.00 (LTP), while Nifty November 2019 futures ended at 11527.15, at a premium of 63.15 points over spot closing (Provisional).Nifty October futures saw an addition of 0.65 million (mn) units, taking the total outstanding open interest (OI) to 15.36 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 11.40 points at 157.05 (LTP) compared with spot closing of 168.45. The numbers of contracts traded were 49,890 (Provisional).
Yes Bank October 2019 futures traded at a premium of 0.15 points at 41.85 (LTP) compared with spot closing of 41.70. The numbers of contracts traded were 43,528 (Provisional).
Zee Entertainment Enterprises October 2019 futures traded at a premium of 0.80 points at 260.80 (LTP) compared with spot closing of 260.00. The numbers of contracts traded were 24,611 (Provisional).
State Bank of India October 2019 futures traded at a premium of 1.05 points at 257.00 (LTP) compared with spot closing of 255.95. The numbers of contracts traded were 24,557 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 0.20 points at 436.00 (LTP) compared with spot closing of 435.80. The numbers of contracts traded were 23,896 (Provisional).
Among, Nifty calls, 11,500 SP from the October month expiry was the most active call with an addition of 0.002 million open interests. Among Nifty puts, 11,400 from the October month expiry was the most active put with an addition of 0.02 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.39 mn) and that for Puts was at 11,000 SP (2.96 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,493.00 -- Pivot Point 11,452.05 -- Support --11,423.05.
The Nifty Put Call Ratio (PCR) finally stood at 1.07 for October month contract. The top five scrips with highest PCR on Bosch (3.64), Cummins India (1.71), Bajaj Finance (1.45), DLF (1.34) and Hindustan Unilever (1.33).
Among most active underlying, State Bank of India witnessed an addition of 5.69 million units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessing an addition of 0.58 million units of Open Interest in the October month contract, Reliance Industries witnessed an addition of 0.32 million units of Open Interest in the October month contract, Infosys witnessed an addition of 1.28 million units of Open Interest in the October month contract and Bharat Petroleum Corporation witnessed an addition of 0.81 million units of Open Interest in the October month future contract (Provisional).
