In a choppy trading session S&P CNX--Nifty-- snapped Friday’s trade in slightly positive terrain by holding its gains near neutral line. Market made positive start, as traders took support with report that notwithstanding global and domestic economic uncertainties, private equity funds recorded an all-time-high investment of $9.4 billion in the third quarter this year, driven by big-ticket transactions. The market also drew some comfort with Finance Minister Nirmala Sitharaman’s statement that efforts will be made to further simplify Goods and Services Tax, and expressed hope that it will help in further improving India’s ranking in the World Bank’s ease of doing business index.
But market failed to hold its gains and started trading in red zone, as traders soon turned cautious with report that the government might be impelled to steeply cut its direct tax collection target, with growth in this regard slumping to 3.5 per cent up to mid-October from the same period in the earlier financial year, as against the Budget target of 17.3 per cent. However, in the last leg of the trade, market gained some momentum, as investors took some relief with NITI Aayog CEO Amitabh Kant’s statement that India's improved ease of doing biz ranking is a huge achievement but there is a scope of improvement on some parameters.
Most of the NSE sectoral indices ended in green, except Auto, FMGC and Metal. The top gainers from the F&O segment Yes Bank, Strides Pharma Science and State Bank of India. On the other hand, the top losers were InterGlobe Aviation, Bharti Infratel and Piramal Enterprises. 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 5.70% and reached 15.31.The 50 share Nifty was up by 1.30 points or 0.01% to settle at 11,583.90.
Nifty October 2019 futures closed at 11604.50 (LTP) on Friday, at a premium of 20.60 points over spot closing of 11583.90, while Nifty November 2019 futures ended at 11649.10 (LTP), at a premium of 65.20 points over spot closing. Nifty October futures saw an addition of 0.30 million (mn) units, taking the total outstanding open interest (OI) to 14.69 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 0.25 points at 53.95 (LTP) compared with spot closing of 53.70. The numbers of contracts traded were 1, 02,213 (Provisional).
State Bank of India October 2019 futures traded at a premium of 0.45 points at 282.80 (LTP) compared with spot closing of 282.35. The numbers of contracts traded were 83,986 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 1.05 points at 470.25 (LTP) compared with spot closing of 469.20. The numbers of contracts traded were 48,351 (Provisional).
InterGlobe Aviation October 2019 futures traded at a premium of 5.20 points at 1474.70 (LTP) compared with spot closing of 1469.50. The numbers of contracts traded were 40,218 (Provisional).
Piramal Enterprises October 2019 futures traded at a discount of 1.50 points at 1578.00 (LTP) compared with spot closing of 1579.50. The numbers of contracts traded were 37,946 (Provisional).
Among, Nifty calls, 11,600 SP from the October month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 11,500 from the October month expiry was the most active put with an addition of 0.49 million open interests. The maximum OI outstanding for Calls was at 12000 SP (3.49 mn) and that for Puts was at 11,000 SP (2.90 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,656.95 -- Pivot Point 11,573.85 -- Support -- 11,500.80.
The Nifty Put Call Ratio (PCR) finally stood at 1.01 for October month contract. The top five scrips with highest PCR on Bosch (3.17), Hindustan Unilever (1.52), DLF (1.51), Berger Paints India (1.47) and Cummins India (1.42).
Among most active underlying, State Bank of India witnessed an addition of 5.07 million units of Open Interest in the October month futures contract, followed by InterGlobe Aviation witnessing a contraction of 0.35 million units of Open Interest in the October month contract, ICICI Bank witnessed an addition of 8.47 million units of Open Interest in the October month contract, Reliance Industries witnessed an addition of 0.59 million units of Open Interest in the October month contract and Maruti Suzuki India witnessed an addition of 0.17 million units of Open Interest in the October month future contract (Provisional).
