The index of National Stock Exchange (NSE) -Nifty- ended last trading day of the week, above its crucial 11650 level by gaining over half a percent to clock sixth straight session of gains. Market started the session slightly negative but soon entered into green terrain, as traders reacted positively to Union Finance Minister Nirmala Sitharaman’s statement that investors can find no better place in the world than India that has a democracy loving and capitalist respecting environment. The mood of the street remained positive, amid a report stating that India has emerged as third largest ecosystems for more successful start-ups right behind China and US but ahead of Britain and Israel.
Further in the afternoon deals, market maintained its positive momentum to touch intraday high point, aided with a private report that corporate tax rate cut is clearly a positive for India which would move the country up the ladder in terms of attractiveness for foreign direct investment. Traders paid no heed towards International Monetary Fund’s (IMF) statement that though India has worked on the fundamentals of its economy, there are problems, including the long-term drivers of growth that need to be addressed.
Most of the NSE sectoral indices ended in green, except Media. The top gainers from the F&O segment Bharat Heavy Electricals, Indiabulls Housing Finance and GMR Infrastructure. On the other hand, the top losers were Zee Entertainment Enterprises, Dish TV India and Tata Motors. 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 0.31% and reached 15.92.The 50 share Nifty was up by 75.50 points or 0.65% to settle at 11,661.85.
Nifty October 2019 futures closed at 11672.00 on (LTP) Friday, at a premium of 10.15 points over spot closing of 11661.85, while Nifty November 2019 futures ended at 11713.50 (LTP), at a premium of 51.65 points over spot closing. Nifty October futures saw a contraction of 0.02 million (mn) units, taking the total outstanding open interest (OI) to 14.04 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 0.10 points at 51.40 (LTP) compared with spot closing of 51.30. The numbers of contracts traded were 88,446 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 20.25 points at 214.95 (LTP) compared with spot closing of 235.20. The numbers of contracts traded were 58,151 (Provisional).
Zee Entertainment Enterprises October 2019 futures traded at a premium of 0.85 points at 250.55 (LTP) compared with spot closing of 249.70. The numbers of contracts traded were 48,273 (Provisional).
Reliance Industries October 2019 futures traded at a premium of 2.00 points at 1418.00 (LTP) compared with spot closing of 1416.00. The numbers of contracts traded were 34,236 (Provisional).
HDFC Bank October 2019 futures traded at a discount of 0.85 points at 1228.15(LTP) compared with spot closing of 1229.00. The numbers of contracts traded were 25,448 (Provisional).
Among, Nifty calls, 11,700 SP from the October month expiry was the most active call with an addition of 0.18 million open interests. Among Nifty puts, 11,500 from the October month expiry was the most active put with an addition of 0.54 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.06 mn) and that for Puts was at 11,000 SP (3.07 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,713.32 -- Pivot Point 11,633.23 -- Support -- 11,581.77.
The Nifty Put Call Ratio (PCR) finally stood at 1.28 for October month contract. The top five scrips with highest PCR on Bosch (3.50), DLF (1.52), Hindustan Unilever (1.46), Cummins India (1.44) and Berger Paints India (1.38).
Among most active underlying, Reliance Industries witnessed an addition of 0.82 million units of Open Interest in the October month futures contract, followed by State Bank of India witnessing an addition of 1.24 million units of Open Interest in the October month contract, Infosys witnessed an addition of 3.51 million units of Open Interest in the October month contract, HDFC Bank witnessed a contraction of 0.52 million units of Open Interest in the October month contract and Zee Entertainment Enterprises witnessed an addition of 0.31 million units of Open Interest in the October month future contract (Provisional).
