NSE gauge -- Nifty50 finished the volatile day of trade in negative terrain with marginal losses. Market made positive start as, traders took encouragement with the India jumped 14 places to the 63rd position on the World Bank’s ease of doing business ranking, riding high on the government’s flagship Make in India scheme and other reforms attracting foreign investment. The country also figured among the top 10 performers on the list for the third time in a row. The sentiments continued to remain firm, as the Chairman of the Economic Advisory Council to the Prime Minister Bibek Debroy said that India’s Gross Domestic Product (GDP) which is hovering around 5 percent is expected to inch up to 7 percent in the next financial year.
But market failed to hold its gain and entered into negative terrain as, anxiety spread among the investor with Fitch Ratings slashed India's GDP growth forecast in the current fiscal to 5.5 per cent saying a large credit squeeze emanating from shadow banks has pushed economic growth to a six year low. Market continued its trade in red zone, as traders were concerned with the Economist Intelligence Unit’s (EIU) statement that India is not likely to benefit from the US-China trade tensions largely owing to existing policy barriers to large-scale production, strict labour laws and difficult land-acquisition process. Traders failed to get relief with the commerce and industry ministry said that India has recorded continuous improvement in its ease of doing business ranking issued by the World Bank on account of steps taken by the government in this regard.
Most of the NSE sectoral indices ended in red, except Realty. The top gainers from the F&O segment Castrol India, Manappuram Finance and Tata Elxsi. On the other hand, the top losers were Vodafone Idea, Dish TV India and Bharti Infratel. 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 1.78% and reached 16.24.The 50 share Nifty was down by 21.50 points or 0.19% to settle at 11,582.60.
Nifty October 2019 futures closed at 11614.05 (LTP) on Thursday, at a premium of 31.45 points over spot closing of 11582.60, while Nifty November 2019 futures ended at 11658.40 (LTP), at a premium of 75.80 points over spot closing. Nifty October futures saw a contraction of 0.17 million (mn) units, taking the total outstanding open interest (OI) to 14.75 mn units. The near month derivatives contract will expire on October 31, 2019 (Provisional).
From the most active contracts, Bharti Airtel October 2019 futures traded at a premium of 0.95 points at 372.95 (LTP) compared with spot closing of 372.00. The numbers of contracts traded were 66,258 (Provisional).
State Bank of India October 2019 futures traded at a premium of 0.55 points at 263.70 (LTP) compared with spot closing of 263.15. The numbers of contracts traded were 57,146 (Provisional).
Yes Bank October 2019 futures traded at a premium of 0.10 points at 48.55 (LTP) compared with spot closing of 48.45. The numbers of contracts traded were 56,100 (Provisional).
Reliance Industries October 2019 futures traded at a premium of 1.40 points at 1436.00 (LTP) compared with spot closing of 1434.60. The numbers of contracts traded were 38,505 (Provisional).
Maruti Suzuki India October 2019 futures traded at a discount of 9.40 points at 7390.00 (LTP) compared with spot closing of 7399.40. The numbers of contracts traded were 31,667 (Provisional).
Among, Nifty calls, 11,700 SP from the October month expiry was the most active call with an addition of 0.52 million open interests. Among Nifty puts, 11,600 from the October month expiry was the most active put with an addition of 0.40 million open interests. The maximum OI outstanding for Calls was at 12000 SP (3.11 mn) and that for Puts was at 11,000 SP (2.89 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,663.25 -- Pivot Point 11,598.95 -- Support -- 11,518.30.
The Nifty Put Call Ratio (PCR) finally stood at 1.04 for October month contract. The top five scrips with highest PCR on Bosch (3.50), Hindustan Unilever (1.56), DLF (1.52), Berger Paints India (1.37) and Maruti Suzuki India (1.30).
Among most active underlying, Reliance Industries witnessed an addition of 0.86 million units of Open Interest in the October month futures contract, followed by State Bank of India witnessing an addition of 23.21 million units of Open Interest in the October month contract, Bharti Airtel witnessed an addition of 7.79 million units of Open Interest in the October month contract, Maruti Suzuki India witnessed an addition of 0.05 million units of Open Interest in the October month contract and Infosys witnessed an addition of 1.54 million units of Open Interest in the October month future contract.
