Domestic index S&P CNX Nifty gave powerful performance by surging around one and half percent on Tuesday, surpassing its psychological 11,750 level, buoyed by hopes of a US-China trade deal. The day began on a positive note for the market, as traders took encouragement from Reserve Bank’s statement that continuing its northward movement, India’s forex kitty has swelled by $1.039 billion to a new life-time high of $440.751 billion for the week ended October 18. Sentiment further got boost after World Bank group President David Malpass’ statement that India must undertake financial reforms in three key areas like sound regulations for non-banking financial companies (NBFCs), allow private sector banks in a big way in the banking sector and deepen capital market to aide growth. Besides, Union Steel Minister Dharmendra Pradhan said that India will spend about $1.4 trillion on its infrastructure development in the next five years.
Market extended its upside in the afternoon deals and touched intraday high point, as sentiments were buoyed with report that Prime Minister Narendra Modi embarked on a two-day visit to Saudi Arabia to help draw investments and bolster bilateral ties, with a dozen agreements expected to be signed in sectors, including energy, Defence procurement and civil aviation. Traders took note of report that the commerce ministry is working on a proposal to allow domestic companies to make payments in the rupee currency for services obtained from special economic zone units. The proposal is aimed at promoting the growth of IT units in special economic zones (SEZs). However, traders shrugged off a private report that declining for the fourth consecutive month, consumer confidence in the month of October nosedived by 3.5% tracking pessimism around jobs, economy, finances, and investment.
Most of the NSE sectoral indices ended in green, except Media. The top gainers from the F&O segment Tata Motors - DVR, Tata Motors and Indiabulls Housing Finance. On the other hand, the top losers were Bharti Infratel, Vodafone Idea and Marico. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,300 - 11,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 5.36% and reached 16.42. The 50 share Nifty was up by 159.70 points or 1.37% to settle at 11,786.85.
Nifty October 2019 futures closed at 11797.10 (LTP) on Tuesday, at a premium of 10.25 points over spot closing of 11786.85, while Nifty November 2019 futures ended at 11848.60 (LTP), at a premium of 61.75 points over spot closing. Nifty October futures saw an addition of 0.79 million (mn) units, taking the total outstanding open interest (OI) to 14.71 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 0.05 points at 58.25 (LTP) compared with spot closing of 58.20. The numbers of contracts traded were 112,015 (Provisional).
Tata Motors October 2019 futures traded at a discount of 0.45 points at 171.70 (LTP) compared with spot closing of 172.15. The numbers of contracts traded were 64,754 (Provisional).
Reliance Industries October 2019 futures traded at a discount of 0.60 points at 1469.50 (LTP) compared with spot closing of 1470.10. The numbers of contracts traded were 62,144 (Provisional).
Indiabulls Housing Finance October 2019 futures traded at a premium of 0.40 points at 215.70 (LTP) compared with spot closing of 215.30. The numbers of contracts traded were 56,430 (Provisional).
ICICI Bank October 2019 futures traded at a premium of 0.40 points at 476.40 (LTP) compared with spot closing of 476.00. The numbers of contracts traded were 47,912 (Provisional).
Among, Nifty calls, 11,800 SP from the October month expiry was the most active call with an addition of 0.28 million open interests. Among Nifty puts, 11,700 from the October month expiry was the most active put with an addition of 2.59 million open interests. The maximum OI outstanding for Calls was at 12000 SP (3.02 mn) and that for Puts was at 11,600 SP (3.08 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,855.05 ---- Pivot Point 11,741.20 --- Support --- 11,673.00.
The Nifty Put Call Ratio (PCR) finally stood at 1.37 for October month contract. The top five scrips with highest PCR on Bosch (6.71), Eicher Motors (1.71), Berger Paints India (1.64), ICICI Bank (1.59) and Hindustan Unilever (1.56).
Among most active underlying, Reliance Industries witnessed an addition of 11.45 million units of Open Interest in the October month futures contract, followed by Tata Motors witnessing a contraction of 3,000 units of Open Interest in the October month contract, State Bank of India witnessed an addition of 10.72 million units of Open Interest in the October month contract, ICICI Bank witnessed an addition of 6.19 million units of Open Interest in the October month contract and Axis Bank witnessed an addition of 6.91 million units of Open Interest in the October month future contract (Provisional).
