Nifty ends near 12000 mark

Extending its gaining streak, NSE gauge -- Nifty50 ended volatile day in positive terrain with a gain of around half a percent. Market made a gap-up start, as traders took encouragement with the Reserve Bank of India’s (RBI) data showing that India's forex reserves increased by $1.832 billion to a new lifetime high of $442.583 billion in the week ended October 25, helped by a jump in core currency assets and value of gold. The market mood remained up with Prime Minister Narendra Modi’s statement that the country is among the top 10 destinations for foreign direct investment (FDI) in the world and had received $286 billion of FDI in the last five years. Some support also came with report that highlighting India's economic growth, Prime Minister Narendra Modi said the country is among the top 10 destinations for foreign direct investment (FDI) in the world and had received $286 billion of FDI in the last five years.

However, market trimmed most of its initial gains, as street got worried with the Confederation of Indian Industry (CII) stating that not being part of the proposed mega trade deal Regional Comprehensive Economic Partnership (RCEP) will harm India's exports and investment flow in the future by cutting off the country from the trading bloc comprising 15 other nations in terms of preferential access. Anxiety remained among the investors with Centre for Monitoring Indian Economy’s report which highlighted that India’s unemployment rate rose to 8.5% in October 2019, the highest level since August 2016.But in the last leg of trade the index regained the traction, as traders took solace with reports that India is likely to make a strong pitch for exports of its Pharma, IT and agricultural products among others at China's second International Import Expo (CIIE) to be opened at Shanghai on November 5.

Traders were seen piling up positions in Bank, Financial services and IT, while selling was witnessed in Auto, FMGC and Media. The top gainers from the F&O segment were Jindal Steel & Power, Max Financial Services and Biocon. On the other hand, the top losers were Dish TV India, Cadila Healthcare and Zee Entertainment Enterprises. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,500 - 12,000 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.22% and reached 15.92.The 50 share Nifty was up by 50.70 points or 0.43% to settle at 11,941.30.

Nifty November 2019 futures closed at 11988.85 (LTP) on  Monday, at a premium of 47.55 points over spot closing of 11941.30, while Nifty December 2019 futures ended at 12034.95 (LTP), at a premium of 93.65 points over spot closing. Nifty November futures saw an addition of 0.42 million (mn) units, taking the total outstanding open interest (OI) to 14.97 mn units. The near month derivatives contract will expire on November 28, 2019 (Provisional).

From the most active contracts, Yes Bank November 2019 futures traded at a discount of 0.30 points at 65.50 (LTP)  compared with spot closing of 65.80. The numbers of contracts traded were 1,12,004 (Provisional).

HDFC November 2019 futures traded at a premium of 10.00 points at 2189.80 (LTP) compared with spot closing of 2179.80. The numbers of contracts traded were 53,088 (Provisional).

Infosys November 2019 futures traded at a premium of 1.90 points at 712.00 (LTP) compared with spot closing of 710.10. The numbers of contracts traded were 41,343 (Provisional).

Jindal Steel & Power November 2019 futures traded at a premium of 0.35 points at 133.80 (LTP) compared with spot closing of 133.45. The numbers of contracts traded were 33,611 (Provisional).

Tata Steel November 2019 futures traded at a premium of 1.15 points at 408.40 (LTP) compared with spot closing of 407.25. The numbers of contracts traded were 33,475 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with an addition of 0.30 million open interests. The maximum OI outstanding for Calls was at 12000 SP (1.89 mn) and that for Puts was at 11,600 SP (1.92 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,985.18 -- Pivot Point 11,945.27 -- Support -- 11,901.38.

The Nifty Put Call Ratio (PCR) finally stood at 1.24 for November month contract. The top five scrips with highest PCR on Bosch (1.56), Power Finance Corporation (1.35), Bajaj Finance (1.26), PVR (1.24) and Hindustan Unilever (1.18).

Among most active underlying, Infosys witnessed an addition of 5.50 million units of Open Interest in the November month futures contract, followed by Housing Development Finance Corporation witnessing an addition of 0.73 million units of Open Interest in the November month contract, State Bank of India witnessed an addition of 3.38 million units of Open Interest in the November month contract, Bajaj Finance witnessed an addition of 0.54 million units of Open Interest in the November month contract and Yes Bank witnessed an addition of 20.50 million units of Open Interest in the November month future contract (Provisional).