Key equity benchmark --Nifty--closed the trading session higher by 1.07% on Thursday, extending its bull run for fifth straight session. Market made a cautious start and traded near its neutral line in first half of the session, amid a report that the Securities and Exchange Board of India (SEBI) is planning to further tighten rules for participatory notes (P-notes), offshore derivative instruments issued by brokers to foreign investors not registered in the country. Sentiments also got undermined, after latest data of Reserve Bank of India showed that credit growth at Indian banks has dropped to its lowest level in nearly two years, as slowing domestic consumption weighs on demand.
But, in late afternoon deals, market added gains to trade with traction, as street got relief with Union Finance Minister Nirmala Sitharaman’s statement that Prime Minister Narendra Modi’s vision of making India a $5-trillion economy and a global economic powerhouse by 2024-25 is ‘challenging’ but ‘realisable’ and underlined that more reforms are on the anvil before the end of the fiscal year. Key index held its strong gains to end the day near intraday high point, as investors got cheer with a report that the digital payment system that has been developed in India not only allows big tech companies to participate in it but also has convenience, ease of use, low cost and financial inclusion.
Most of the NSE sectoral indices ended in green, except IT. The top gainers from the F&O segment Yes Bank, Indiabulls Housing Finance and Tata Motors. On the other hand, the top losers were Vodafone Idea, National Aluminium Company and Exide Industries. 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 2.95% and reached 15.87.The 50 share Nifty was up by 122.35 points or 1.07% to settle at 11,586.35.
Nifty October 2019 futures closed at 11598.30 on (LTP) Thursday, at a premium of 11.95 points over spot closing of 11586.35, while Nifty November 2019 futures ended at 11642.60 (LTP), at a premium of 56.25 points over spot closing (Provisional). Nifty October futures saw an addition of 0.76 million (mn) units, taking the total outstanding open interest (OI) to 15.01 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 0.20 points at 47.60 (LTP) compared with spot closing of 47.40. The numbers of contracts traded were 1, 07,324 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 5.90 points at 191.50 (LTP) compared with spot closing of 197.40. The numbers of contracts traded were 62,762 (Provisional).
Zee Entertainment Enterprises October 2019 futures traded at a discount of 3.60 points at 259.10 (LTP) compared with spot closing of 262.70. The numbers of contracts traded were 39,675 (Provisional).
Tata Motors October 2019 futures traded at a discount of 0.20 points at 142.35 (LTP) compared with spot closing of 142.55. The numbers of contracts traded were 31,115 (Provisional).
RBL Bank October 2019 futures traded at a premium of 0.25 points at 288.75 (LTP) compared with spot closing of 288.50. The numbers of contracts traded were 26,499 (Provisional).
Among, Nifty calls, 11,600 SP from the October month expiry was the most active call with an addition of 0.26 million open interests. Among Nifty puts, 11,400 from the October month expiry was the most active put with an addition of 0.50 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.26 mn) and that for Puts was at 11,000 SP (3.07 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,643.75 -- Pivot Point 11,541.70 -- Support --11,484.30.
The Nifty Put Call Ratio (PCR) finally stood at 1.18 for October month contract. The top five scrips with highest PCR on Bosch (4.17), Cummins India (1.67), Bajaj Finance (1.47), Hindustan Unilever (1.46) and DLF (1.35).
Among most active underlying, Reliance Industries witnessed an addition of 1.02 million units of Open Interest in the October month futures contract, followed by State Bank of India witnessing a contraction of 3.27 million units of Open Interest in the October month contract, Bajaj Finance witnessed an addition of 0.16 million units of Open Interest in the October month contract, Housing Development Finance Corporation witnessed a contraction of 0.19 million units of Open Interest in the October month contract and Tata Motors witnessed an addition of 3.83 million units of Open Interest in the October month future contract.
