Nifty ends near intraday low point

After trading in high spirit most part of the day, key equity benchmark -- Nifty -- pared most of its gain to close Friday’s trading session marginally in green. The index made a positive start, as traders took encouragement with report that even after the flurry of sops given to various industries after the budget, Union MSME Minister Nitin Gadkari has said the government will create a special financial scheme for 10 industry segments which are import-driven. He said the government has created a scheme to support industries where imports are high by providing special financial assistance. Traders also took note that in a relief to taxpayers, the government extended the due dates for filing GST annual returns for 2017-18 to December 31 and for the financial year 2018-19, to March 31 next year. The dates for filing the reconciliation statement has also been extended accordingly. In another relief, it has also decided to simplify the two GST forms by making various fields of these forms as optional. Further market added some more gains to touch intraday high point, as up-move got support with Union Minister Pratap Chandra Sarangi’s statement that the MSME sector plays a crucial role in achieving the Centre's target of making the country $5 trillion economy. He said the MSME sector is the largest employment generator after agriculture in the country.

However, in the last leg of trade market trim most of its gain to touch intraday low point, as investors got wary after Moody’s Investors Services has cut its forecast for India’s 2019 (calendar) GDP growth by 60 bps to 5.6%, in what reflected a continuing trend of such downward revisions by prominent domestic and foreign agencies. Adding some anxiety among the investors with SBI research’s report which showed that surplus rainfall in August and September is likely to keep food and vegetable prices elevated going forward, and retail inflation may average at around 4% in FY20. Sentiments were weighed down with the report that headline inflation is bound to rise further to 5% for November, but despite the pinch in price rise, the Reserve Bank will go for two consecutive rate cuts on growth concerns.

Traders were seen piling up positions in Bank, Media and Financial services, while selling was witnessed in Auto, FMGC and Metal. 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 3.96% and reached 15.03.The 50 share Nifty was up by 23.35 points or 0.20% to settle at 11,895.45.

Nifty November 2019 futures closed at 11940.00 (LTP) on Friday, at a premium of 44.55 points over spot closing of 11895.45, while Nifty December 2019 futures ended at 11985.65 (LTP), at a premium of 90.20 points over spot closing. Nifty November futures saw an addition of 0.82 million (mn) units, taking the total outstanding open interest (OI) to 16.14 mn units. The near month derivatives contract will expire on November 28, 2019 (Provisional).

From the most active contracts, State Bank of India November 2019 futures traded at a premium of 1.25 points at 324.20 (LTP) compared with spot closing of 322.95. The numbers of contracts traded were 65,716 (Provisional).

Bharti Airtel November 2019 futures traded at a discount of 1.20 points at 394.80 (LTP) compared with spot closing of 396.00. The numbers of contracts traded were 46,452 (Provisional).

ICICI Bank November 2019 futures traded at a premium of 0.60 points at 499.45 (LTP) compared with spot closing of 498.85. The numbers of contracts traded were 41,347 (Provisional).

Yes Bank November 2019 futures traded at a discount of 0.15 points at 68.80 (LTP) compared with spot closing of 68.95. The numbers of contracts traded were 34,990 (Provisional).

Indiabulls Housing Finance November 2019 futures traded at a discount of 8.45 points at 202.10 compared with spot closing of 210.55. The numbers of contracts traded were 26,674 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.006 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with a contraction of 0.38 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.22 mn) and that for Puts was at 11,600 SP (2.19 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,952.98 -- Pivot Point 11,916.12 -- Support -- 11,858.58.

The Nifty Put Call Ratio (PCR) finally stood at 1.23 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.57), Bajaj Finserv (1.22), Bajaj Finance (1.17), Oil India (1.06) and Adani Enterprises (1.04).

Among most active underlying, State Bank of India witnessed an addition of 18.67 million units of Open Interest in the November month futures contract, followed by Bharti Airtel witnessing an addition of 8.08 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 5.11 million units of Open Interest in the November month contract, Reliance Industries witnessed an addition of 0.67 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed an addition of 0.15 million units of Open Interest in the November month future contract (Provisional).