Indian equity benchmark NSE gauge -- Nifty50 recovered from losses to end higher on Wednesday, gaining around 0.40%. Key index started the day on cautious note and traded lower, as traders were cautious with a private report that the government may discontinue spending on 200-odd schemes in order to stick to its fiscal deficit target of 3.3 percent. Sentiments got undermined, as Indian rupee opened on a cautious note and fell 15 paise to 70.84 against the US dollar in early trade.
However, market wiped out all the early losses to turn positive in early afternoon deals, as investors took some relief with Commerce and Industry Minister Piyush Goyal’s statement that India’s services sector has huge potential to generate job opportunities and push country’s Gross Domestic Product (GDP) growth. He suggested that the ministry, state and industry body Confederation of Indian Industry (CII) can work on some kind of policies and enablers to push the growth of 12 champion sectors being identified by the government. Further indices added some more gain on the street with IT industry body Nasscom’s statement that with the addition of more than 1,300 startups this year so far, India continues to reinforce its position as the third-largest startup ecosystem in the world. Adding some support, Finance Minister Nirmala Sitharaman’s statement that the government is eager to modify rules and boost investment in the infrastructure space. She also said the government is focusing on real estate as part of a broader plan to kick-start economic growth.
Most of the NSE sectoral indices ended in green, except Auto, Media and PSU Bank. The top gainers from the F&O segment GMR Infrastructure, Torrent Power and SRF. On the other hand, the top losers were Titan Company, Vodafone Idea and Apollo Tyres. 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 0.90% and reached 15.77.The 50 share Nifty was up by 48.85 points or 0.41% to settle at 11,966.05.
Nifty November 2019 futures closed at 12004.10 (LTP) on Wednesday, at a premium of 38.05 points over spot closing of 11966.05, while Nifty December 2019 futures ended at 12045.00 (LTP), at a premium of 78.95 points over spot closing. Nifty November futures saw an addition of 1.09 million (mn) units, taking the total outstanding open interest (OI) to 16.18 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 premium of 0.20 points at 68.75 (LTP) compared with spot closing of 68.55. The numbers of contracts traded were 61,780 (Provisional).
ICICI Bank November 2019 futures traded at a premium of 0.95 points at 480.95 (LTP) compared with spot closing of 480.00. The numbers of contracts traded were 36,352 (Provisional).
Indiabulls Housing Finance November 2019 futures traded at a discount of 5.95 points at 211.00 (LTP) compared with spot closing of 216.95. The numbers of contracts traded were 36,118 (Provisional).
Titan Company November 2019 futures traded at a premium of 4.70 points at 1159.00 (LTP) compared with spot closing of 1154.30. The numbers of contracts traded were 35,711 (Provisional).
Cipla November 2019 futures traded 482.00 (LTP) with spot closing of 482.00. The numbers of contracts traded were 30,817 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a contraction of 0.002 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with an addition of 0.12 units open interests. The maximum OI outstanding for Calls was at 12000 SP (1.81 mn) and that for Puts was at 11,600 SP (1.90 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,029.22 -- Pivot Point 11,939.73 -- Support -- 11,876.57.
The Nifty Put Call Ratio (PCR) finally stood at 1.22 for November month contract. The top five scrips with highest PCR on Bosch (1.60), Hindustan Unilever (1.24), PVR (1.23), Power Finance Corporation (1.22) and Bajaj Finance (1.18).
Among most active underlying, Titan Company witnessed an addition of 3.97 million units of Open Interest in the November month futures contract, followed by Infosys witnessing an addition of 3.87 million units of Open Interest in the November month contract, State Bank of India witnessed an addition of 3.59 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 6.54 million units of Open Interest in the November month contract and Bajaj Finance witnessed an addition of 0.15 million units of Open Interest in the November month future contract (Provisional).
