Snapping its 7-day winning streak, the local benchmark -- Nifty -- ended Tuesday's session slightly in red territory, below its psychological level of 11950 mark. Market made a positive start, but soon lost momentum to trade flat, as traders turned cautious with report that India decided not to join Regional Comprehensive Economic Partnership (RCEP) agreement. India has significant core interests that remain unresolved in the current RCEP agreement. The mood on the street remained cautious with SBI report stating that India's Gross Domestic Product (GDP) growth is likely to slow further in the July-September quarter of this financial year to below 5 per cent amid decline in consumption, weak investments and an under-performing service sector. Further indices extended its losses, as IHS Markit Services Purchasing Managers' Index rose to 49.2 in October from 48.7 in September, it remained below the 50-mark threshold that separates contraction from expansion.
The barometer added some more losses to continue their weak trade, as sentiments got undermined with the report that activity in India's dominant services industry contracted for a second consecutive month in October due to muted demand, according private business survey, driving business optimism to a near-three year low. Adding some concern, private survey showed India’s service sector activity declined for the second straight month in October, the first back-to-back reduction since the second quarter of 2017-18, dragging business confidence to its lowest level in close to three years. But market trimmed some of its losses, as investors took some relief from private report that India is expected to see M&A deals of over $52 billion in 2019 as mergers and acquisitions in the country are expected to remain stable despite global headwinds.
Most of the NSE sectoral indices ended in red, except FMGC. The top gainers from the F&O segment Dabur India, Bajaj Finance and Bharti Infratel. On the other hand, the top losers were Vodafone Idea, Bharat Electronics and Punjab National Bank. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,400 - 11,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.20% and reached 15.89.The 50 share Nifty was down by 24.10 points or 0.20% to settle at 11,917.20.
Nifty November 2019 futures closed at 11958.05 (LTP) on Tuesday, at a premium of 40.85 points over spot closing of 11917.20 (LTP), while Nifty December 2019 futures ended at 12005.60, at a premium of 88.40 points over spot closing. Nifty November futures saw an addition of 0.64 million (mn) units, taking the total outstanding open interest (OI) to 15.31 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 0.15 points at 68.15 (LTP) compared with spot closing of 68.30. The numbers of contracts traded were 78,402 (Provisional).
State Bank of India November 2019 futures traded at a premium of 1.50 points at 320.50 (LTP) compared with spot closing of 319.00. The numbers of contracts traded were 34,799 (Provisional).
Indiabulls Housing Finance November 2019 futures traded at a discount of 4.95 points at 218.95 (LTP) compared with spot closing of 223.90. The numbers of contracts traded were 34,310 (Provisional).
InterGlobe Aviation November 2019 futures traded at a premium of 6.80 points at 1471.80 (LTP) compared with spot closing of 1465.00. The numbers of contracts traded were 29,897 (Provisional).
Bajaj Finance November 2019 futures traded at a premium of 23.80 points at 4274.05 (LTP) compared with spot closing of 4250.25. The numbers of contracts traded were 29,398 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.26 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with a contraction of 5.25 units open interests. The maximum OI outstanding for Calls was at 12000 SP (1.86 mn) and that for Puts was at 11,600 SP (1.92 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,976.80 -- Pivot Point 11,919.35 -- Support -- 11,859.75.
The Nifty Put Call Ratio (PCR) finally stood at 1.27 for November month contract. The top five scrips with highest PCR on Bosch (1.78), PVR (1.45), Bajaj Finance (1.32), Hindustan Unilever (1.32) and Power Finance Corporation (1.31).
Among most active underlying, State Bank of India witnessed an addition of 9.45 million units of Open Interest in the November month futures contract, followed by Bajaj Finance witnessing an addition of 0.96 million units of Open Interest in the November month contract, Reliance Industries witnessed an addition of 0.90 million units of Open Interest in the November month contract, Infosys witnessed an addition of 3.91 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed an addition of 0.05 million units of Open Interest in the November month future contract (Provisional).
