Nifty ends in green; reclaims 12k mark

The key equity benchmark -- Nifty -- ended Thursday’s session on a positive note by recapturing its crucial psychological level of 12,000 mark. The barometer made a gap-up start, as traders took encouragement with Cabinet clearing the structure of the proposed exclusive alternate investment fund (AIF) for the real estate sector with an initial corpus of Rs 25,000 crore, more inclusive terms and a commitment to continue to provide more budget funds, in addition to the initial Rs 10,000 crore, as and when demand arises. Market wiped off all its gains and entered into negative territory in noon session, as traders turned careful with the International Monetary Fund’s (IMF) statement that the Indian government needs to become more ‘transparent’ on the fiscal numbers as it is a ‘laggard’ among the G20 peers on this front.

However, in the second session of the trade, market got grip as sentiments got boost with Prime Minister Narendra Modi’s statement that India is taking several steps to create an enabling ecosystem for investors. Some more relief also came, with a report that in order to protect the interests of farmers and boost agriculture exports, Niti Aayog Vice-Chairman Rajiv Kumar has called for a review of regulations under the Essential Commodities Act (ECA).

Most of the NSE sectoral indices ended in green, except PSU Bank and Auto. The top gainers from the F&O segment Jindal Steel & Power, NBCC and Indiabulls Housing Finance. On the other hand, the top losers were UPL, NMDC and Lupin. 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 3.60% and reached 15.20. The 50 share Nifty was up by 46.00 points or 0.38% to settle at 12,012.05.

Nifty November 2019 futures closed at 12055.50 (LTP) on Thursday, at a premium of 43.45 points over spot closing of 12012.05, while Nifty December 2019 futures ended at 12097.40 (LTP), at a premium of 85.35 points over spot closing. Nifty November futures saw an addition of 0.64 million (mn) units, taking the total outstanding open interest (OI) to 16.38 mn units. The near month derivatives contract will expire on November 28, 2019 (Provisional).

From the most active contracts, Indiabulls Housing Finance November 2019 futures traded at a discount of 8.30 points at 230.00 (LTP) compared with spot closing of 238.30. The numbers of contracts traded were 62,237 (Provisional).

Yes Bank November 2019 futures traded at a discount of 0.45 points at 65.80 (LTP) compared with spot closing of 66.25. The numbers of contracts traded were 53,487 (Provisional).

Tata Steel November 2019 futures traded at a premium of 1.80 points at 404.60 (LTP) compared with spot closing of 402.80. The numbers of contracts traded were 53,188 (Provisional).

Sun Pharma November 2019 futures traded at a premium of 2.30 points at 444.80 (LTP) compared with spot closing of 442.50. The numbers of contracts traded were 28,460 (Provisional).

ICICI Bank November 2019 futures traded at a premium of 1.70 points at 481.30 (LTP) compared with spot closing of 479.60. The numbers of contracts traded were 26,174 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a contraction of 0.01 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with an addition of 0.24 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 (1.94 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,040.02 -- Pivot Point 11,993.43 -- Support -- 11,965.47.

The Nifty Put Call Ratio (PCR) finally stood at 1.24 for November month contract. The top five scrips with highest PCR on PVR (1.36), Bajaj Finance (1.23), Cummins India (1.15), Jindal Steel & Power (1.14) and State Bank of India (1.08).

Among most active underlying, Tata Steel witnessed an addition of 0.42 million units of Open Interest in the November month futures contract, followed by State Bank of India witnessing an addition of 0.39 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 0.57 million units of Open Interest in the November month contract, Reliance Industries witnessed a contraction of 0.08 million units of Open Interest in the November month contract and Sun Pharma witnessed an addition of 0.40 million units of Open Interest in the November month future contract.