Key equity benchmark -- Nifty -- ended the last day of trading week in negative trajectory, on the back of intense selling in Pharma and PSU Bank stocks. The index made a negative start, as Moody's Investors Service cut India's credit rating outlook to negative from stable, citing a growing debt burden and the government's struggle to narrow the budget deficit. It said the country’s economic growth will remain ‘materially lower than in the past’. Market turned positive for little time in noon deals as Reserve Bank of India (RBI) data showing that the non-food credit growth in the banking system stood at 8.79% year-on-year (y-o-y) for the fortnight ended November 7, the highest in the last three fortnights, following the lending outreach programmes by public-sector banks (PSBs).
However, last hour sell-off pushed the index to end the trading session near intraday low point, as anxiety remained among traders with a private report stating that corporate India is forecasting deteriorating growth for the October-December period this year as optimism for new orders and sales prices have hit the lowest level in nearly 18 years. The Dun & Bradstreet Composite Business Optimism Index stood at 56.4 for December quarter this year, registering a decline of 19.5 percent as compared to the year-ago period.
Most of the NSE sectoral indices ended in red, except Realty, Pvt Bank and Bank. The top gainers from the F&O segment Indraprastha Gas, DLF and NCC. On the other hand, the top losers were Bharat Forge, HPCL and Bharti Infratel. 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 increased by 4.26% and reached 15.85. The 50 share Nifty was down by 103.90 points or 0.86% to settle at 11,908.15.
Nifty November 2019 futures closed at 11940.00 (LTP) on Friday, at a premium of 31.85 points over spot closing of 11908.15, while Nifty December 2019 futures ended at 11980.15 (LTP), at a premium of 72.00 points over spot closing. Nifty November futures saw an addition of 0.50 million (mn) units, taking the total outstanding open interest (OI) to 16.68 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 0.25 points at 69.90 (LTP) compared with spot closing of 69.65. The numbers of contracts traded were 1,15,451 (Provisional).
Indiabulls Housing Finance November 2019 futures traded at a discount of 6.90 points at 235.20 (LTP) compared with spot closing of 242.10. The numbers of contracts traded were 62,506 (Provisional).
ICICI Bank November 2019 futures traded at a discount of 0.75 points at 489.25 (LTP) compared with spot closing of 490.00. The numbers of contracts traded were 54,549 (Provisional).
IndusInd Bank November 2019 futures traded at a premium of 5.00 points at 1427.00 (LTP) compared with spot closing of 1422.00. The numbers of contracts traded were 30,237 (Provisional).
RBL Bank November 2019 futures traded at a premium of 0.70 points at 323.80 (LTP) compared with spot closing of 323.10. The numbers of contracts traded were 25,358 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a addition of 0.12 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with an addition of 0.16 units open interests. The maximum OI outstanding for Calls was at 12000 SP (1.91 mn) and that for Puts was at 11,600 SP (2.04 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,998.62 -- Pivot Point 11,943.68 -- Support -- 11,853.22.
The Nifty Put Call Ratio (PCR) finally stood at 1.21 for November month contract. The top five scrips with highest PCR on PVR (1.23), Bajaj Finance (1.19), Adani Enterprises (1.10), Bajaj Auto (1.04) and Power Finance Corporation (1.03).
Among most active underlying, ICICI Bank witnessed an addition of 0.11 million units of Open Interest in the November month futures contract, followed by State Bank of India witnessing an addition of 0.50 million units of Open Interest in the November month contract, Reliance Industries witnessed an addition of 0.16 million units of Open Interest in the November month contract, DLF witnessed an addition of 1.85 million units of Open Interest in the November month contract and Yes Bank witnessed an addition of 1.08 million units of Open Interest in the November month future contract (Provisional).
