Nifty ends with losses, stumbles below 11,850 mark

NSE gauge -- Nifty50 -- ended the day’s trade near the intraday low point with cut of over half a percent. After making a cautious start, nifty showed some strength in morning deals, as traders took some solace with Defence Minister Rajnath Singh exuded confidence that India will become a $10 trillion economy in the next 10 to 15 years. But, soon market wiped off all its gain, as sentiments turned pessimistic with SBI research report sharply cut the country's GDP growth forecast to 5% for FY 2019-20 from the earlier projection of 6%. It said the second-quarter GDP growth rate is likely to slip to 4.2% on account of low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure.

Further, index start drifting lower, as sentiments remained down-beat with report stating that venture investment activity in India slowed down both by value and deal volumes in October to $3.312 billion in 91 transactions on account of poor show by the realty sector. Besides, late hour selling dragged the market to its intraday low point as investors remained worried about the showing signs of sluggishness in the economy, industrial production shrunk by 4.3% in September, registering the weakest performance in seven years due to output decline in manufacturing, mining and electricity sectors.

All the NSE sectoral indices ended in red .The top gainers from the F&O segment Britannia Industries, Mahanagar Gas and Tata Consultancy Services. On the other hand, the top losers were Sun TV Network, Dish TV India and Indiabulls Housing Finance. 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 0.61% and reached 16.35.The 50 share Nifty was down by 73.00 points or 0.61% to settle at 11,840.45.

Nifty November 2019 futures closed at 11862.00 (LTP) on Wednesday, at a premium of 21.55 points over spot closing of 11840.45, while Nifty December 2019 futures ended at 11904.00 (LTP), at a premium of 63.55 points over spot closing. Nifty November futures saw an addition of 0.91 million (mn) units, taking the total outstanding open interest (OI) to 16.23 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 0.10 points at 68.75 (LTP) compared with spot closing of 68.85. The numbers of contracts traded were 80,130 (Provisional).

Indiabulls Housing Finance November 2019 futures traded at a discount of 8.80 points at 209.30 (LTP) compared with spot closing of 218.10. The numbers of contracts traded were 35,434 (Provisional).

Reliance Industries November 2019 futures traded at a premium of 0.40 points at 1469.50 (LTP) compared with spot closing of 1469.10. The numbers of contracts traded were 33,613 (Provisional).

State Bank of India November 2019 futures traded at a premium of 0.95 points at 307.80 (LTP) compared with spot closing of 306.85. The numbers of contracts traded were 24,687 (Provisional).

RBL Bank November 2019 futures traded at a premium of 0.25 points at 333.90 (LTP) compared with spot closing of 333.65. The numbers of contracts traded were 24,493 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.22 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with a contraction of 0.002 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.21 mn) and that for Puts was at 11,600 SP (2.05 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,917.10 -- Pivot Point 11,870.15 -- Support -- 11,793.50.

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for November month contract. The top five scrips with highest PCR on Page Industries (8.00), Bajaj Finance (1.12), Bajaj Finserv (1.08), PVR (0.98) and Indusind Bank (0.96).

Among most active underlying, Reliance Industries witnessed an addition of 1.00 million units of Open Interest in the November month futures contract, followed by State Bank of India witnessing an addition of 1.60 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 1.25 million units of Open Interest in the November month contract, Tata Consultancy Services witnessed an addition of 0.17 million units of Open Interest in the November month contract and Yes Bank witnessed an addition of 5.87 million units of Open Interest in the November month future contract (Provisional).