Nifty ends volatile trade marginal in green

In a volatile trading session NSE gauge -- Nifty50 snapped Thursday’s trade on positive note with the gain of quarter percent. After making slight positive start, index soon turned volatile in early deals as, traders cautious with CPI inflation numbers as it hit a 16-month peak of 4.62% in October, as food inflation jumped to 7.89% - the highest since July 2016. This could limit the quantum of the repo rate cut in December, even as a slowdown in economic growth deepens. However, market turned positive for little time, as investors got some relief with SBI report showing that credit growth picked up rapid pace beginning September - jumping by Rs 1.08 lakh crore - mainly helped by housing, NBFC and lately MSME. The report further said the week up to Diwali has shown an increase in currency in circulation of Rs 30,871 crore from the previous week, thereby showing that people have been demanding cash in the festive season.

Further, market once again came under pressure, with a private report which highlighted that even as the retail inflation crossed the RBI’s comfort level for the first time in over a year, it may continue to remain higher in the remaining fiscal year. This may further complicate the policy decisions in the wake of the ongoing slowdown. However, nifty pared all of its losses to end the day’s trade in green territory, as traders took some solace with India’s Wholesale price index (WPI) inflation again fell to 0.16% in the month of October 2019 as against 0.33% for the previous month and 5.54% during the corresponding month of the previous year.

Traders were seen piling up positions in Bank, Auto and Financial services, while selling was witnessed in Metal, FMGC and Realty. The top gainers from the F&O segment were Muthoot Finance, Sun TV Network and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Vodafone Idea, Aurobindo Pharma and NBCC (India). In the index option segment, maximum OI continues to be seen in the 11800 12,300 calls and 11,500 12,000 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.94% and reached 15.65.The 50 share Nifty was up by 31.65 points or 0.27% to settle at 11,872.10.

Nifty November 2019 futures closed at 11897.50 (LTP) on Thursday, at a premium of 25.40 points over spot closing of 11872.10, while Nifty December 2019 futures ended at 11944.30 (LTP), at a premium of 72.20 points over spot closing. Nifty November futures saw an addition of 0.46 million (mn) units, taking the total outstanding open interest (OI) to 16.04 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 0.20 points at 68.55 (LTP) compared with spot closing of 68.75. The numbers of contracts traded were 43,992 (Provisional).

Indiabulls Housing Finance November 2019 futures traded at a discount of 9.25 points at 201.20 (LTP) compared with spot closing of 210.45. The numbers of contracts traded were 34,294 (Provisional).

State Bank of India November 2019 futures traded at a premium of 1.15 points at 307.40 (LTP) compared with spot closing of 306.25. The numbers of contracts traded were 28,476 (Provisional).

ICICI Bank November 2019 futures traded at a discount of 0.25 points at 497.80 (LTP) compared with spot closing of 498.05. The numbers of contracts traded were 27,259 (Provisional).

Aurobindo Pharma November 2019 futures traded at a discount of 1.50 points at 395.50 (LTP) compared with spot closing of 397.00. The numbers of contracts traded were 18,498 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.004 million open interests. Among Nifty puts, 11,800 from the November month expiry was the most active put with a contraction of 0.20 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.18 mn) and that for Puts was at 11,600 SP (2.18 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,910.95 -- Pivot Point 11,856.80 -- Support -- 11,817.95.

The Nifty Put Call Ratio (PCR) finally stood at 1.20 for November month contract. The top five scrips with highest PCR on Page Industries (3.00), Bajaj Finance (1.24), Bajaj Finserv (1.15), Bharti Airtel (1.04) and Bajaj Auto  (1.03).

Among most active underlying, State Bank of India witnessed an addition of 5.46 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing an addition of 0.22 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 4.16 million units of Open Interest in the November month contract, Bajaj Finance witnessed an addition of 0.34 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed an addition of 0.08 million units of Open Interest in the November month future contract (Provisional).