The local benchmark Nifty managed to close the session with marginal gains of 0.14% on Wednesday. The index started the trade on a caution note with report that corporate India's merger and acquisition activity in the July-September quarter witnessed a downtrend with total deal value falling by more than half over the last year, largely owing to a slump in economic activity and lack of big ticket deals. Soon, market turned positive to trade in green for the most part of session, as traders got solace with Union Minister Nitin Gadkari’s statement that the government will soon make changes to the definition of a micro, small and medium enterprise and hoped to generate five crore jobs in the MSME sector in five years.
In the last leg of the trade, market wiped out its gains to slip in red, on the back of report stating that India Ratings & Research (Ind-Ra) believes that aggregate states’ fiscal deficit slippage to 2.9% of GDP in FY19 revised estimate (RE), from 2.6% in FY19 budget estimate (BE) (Ind-Ra forecast: 2.8%) is mainly due to an expansionary fiscal policy followed by the state governments. But, index again staged recovery to settle higher, after the International Monetary Fund sees Indian economic growth rebounding to around 7 per cent in the next financial year, supported by measures like monetary policy stimulus & corporate income tax cuts.
Traders were seen piling up positions in PSU Bank, Auto and IT stocks, while selling was witnessed in Media, Realty and Metal stocks. The top gainers from the F&O segment were Jubilant Foodworks, NCC and SRF. On the other hand, the top losers were Dish TV India, RBL Bank 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 1.64% and reached 16.53. The 50 share Nifty was up by 15.75 points or 0.14% to settle at 11,604.10.
Nifty October 2019 futures closed at 11630.20 (LTP) on Wednesday, at a premium of 26.10 points over spot closing of 11604.10, while Nifty November 2019 futures ended at 11673.00 (LTP), at a premium of 68.90 points over spot closing. Nifty October futures saw a contraction of 0.07 million (mn) units, taking the total outstanding open interest (OI) to 14.85 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 51.20 (LTP) compared with spot closing of 51.00. The numbers of contracts traded were 60,599 (Provisional).
RBL Bank October 2019 futures traded at a premium of 0.70 points at 261.00 (LTP) compared with spot closing of 260.30. The numbers of contracts traded were 54,434 (Provisional).
Infosys October 2019 futures traded at a premium of 0.60 points at 650.95 (LTP) compared with spot closing of 650.35. The numbers of contracts traded were 43,683 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a discount of 3.95 points at 202.25 (LTP) compared with spot closing of 206.20. The numbers of contracts traded were 39,982 (Provisional).
Reliance Industries October 2019 futures traded at a premium of 4.00 points at 1398.00 (LTP) compared with spot closing of 1394.00. The numbers of contracts traded were 24,323 (Provisional).
Among, Nifty calls, 11,700 SP from the October month expiry was the most active call with an addition of 0.14 million open interests. Among Nifty puts, 11,600 from the October month expiry was the most active put with an addition of 0.18 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.63 mn) and that for Puts was at 11,000 SP (2.80 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,652.33 -- Pivot Point 11,603.37 -- Support --11,555.13.
The Nifty Put Call Ratio (PCR) finally stood at 1.09 for October month contract. The top five scrips with highest PCR on Bosch (3.79), Hindustan Unilever (1.62), DLF (1.61), Cummins India (1.39) and Mahindra & Mahindra Financial Services (1.35).
Among most active underlying, Infosys witnessed an addition of 1.16 million units of Open Interest in the October month futures contract, followed by Reliance Industries witnessing an addition of 0.37 million units of Open Interest in the October month contract, Bajaj Finance witnessed a contraction of 0.39 million units of Open Interest in the October month contract, Axis Bank witnessed an addition of 2.67 million units of Open Interest in the October month contract and SBIN witnessed an addition of 1.52 million units of Open Interest in the October month future contract (Provisional).
