The local benchmark Nifty snapped six days winning streak to close in red territory on Tuesday. Market started on a cautious note, as Finance Minister Nirmala Sitharaman cautioned that trade wars and protectionism have generated uncertainties, which will ultimately impact the flow of capital, goods and services. Index altered between red and green but failed to keep its head above neutral line for long time, amid a report showing that as many as 360 infrastructure projects, each worth Rs 150 crore or more, have shown cost overruns to the tune of over Rs 3.88 lakh crore owing to delays and other reasons.
Market extended losses in the last hour of trade to touch its intraday low point, despite positive cues from global markets. Traders overlooked commerce and industry minister Piyush Goyal’s statement that in a clear sign that India and the US are close to finding common ground on their outstanding trade issues that started looking intractable. The street also paid no heed towards the Retirement fund body, Employment Provident Fund Organisation’s (EPFO) latest ‘Provisional Estimate of Net Payroll’ data report showing that India created 10,86,113 new jobs in the month of August 2019.
Most of the NSE sectoral indices ended in green, except Media, Auto and Metal. The top gainers from the F&O segment Century Textiles & Industries, Piramal Enterprises and Mahindra & Mahindra Financial Services. On the other hand, the top losers were Infosys, Dish TV India and Indiabulls Housing Finance. 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 5.54% and reached 16.81.The 50 share Nifty was down by 73.50 points or 0.63% to settle at 11,588.35.
Nifty October 2019 futures closed at 11624.40 on (LTP) Tuesday, at a premium of 36.05 points over spot closing of 11588.35, while Nifty November 2019 futures ended at 11667.65 (LTP) , at a premium of 79.30 points over spot closing. Nifty October futures saw a contraction of 1.68 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 discount of 0.05 points at 51.85 (LTP) compared with spot closing of 51.90. The numbers of contracts traded were 96,142 (Provisional).
Infosys October 2019 futures traded at a discount of 5.20 points at 634.80 (LTP) compared with spot closing of 640.00. The numbers of contracts traded were 84,779 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 17.40 points at 200.60 (LTP) compared with spot closing of 218.00. The numbers of contracts traded were 54,681 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 0.50 points at 452.25 (LTP) compared with spot closing of 451.75. The numbers of contracts traded were 46,358 (Provisional).
Bajaj Finance October 2019 futures traded at a premium of 16.80 points at 4066.80 (LTP) compared with spot closing of 4050.00. The numbers of contracts traded were 40,508 (Provisional).
Among, Nifty calls, 11,700 SP from the October month expiry was the most active call with an addition of 0.49 million open interests. Among Nifty puts, 11,600 from the October month expiry was the most active put with an addition of 0.12 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.44 mn) and that for Puts was at 11,000 SP (2.81 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,677.25 -- Pivot Point 11,625.45 -- Support -- 11,536.55.
The Nifty Put Call Ratio (PCR) finally stood at 1.12 for October month contract. The top five scrips with highest PCR on Bosch (3.77), Mahindra & Mahindra Fin. Services (1.66), DLF (1.64), Hindustan Unilever (1.55) and Cummins India (1.39).
Among most active underlying, Infosys witnessed an addition of 22.73 million units of Open Interest in the October month futures contract, followed by Reliance Industries witnessing an addition of 1.01 million units of Open Interest in the October month contract, Bajaj Finance witnessed an addition of 0.57 million units of Open Interest in the October month contract, ICICI Bank witnessed an addition of 6.79 million units of Open Interest in the October month contract and HDFC Bank witnessed a contraction of 0.00 million units of Open Interest in the October month future contract.
