After trading near neutral line for most part of the day, the fifty stock index -- Nifty closed the trading session marginally lower by 10.95 points on Monday. Earlier, the index opened in green terrain, as traders took encouragement with report that FPIs pumped in a net sum of Rs 19,203 crore into the domestic capital markets in the first half of November amid encouraging domestic and global factors. However, market turned choppy, after economic think-tank National Council of Applied Economic Research (NCAER) said that India’s economic growth is likely to decline to 4.9% in the second quarter of this fiscal. Besides, the think-tank pegged Gross Domestic Product growth at 4.9% as for the full fiscal 2019-20 against 6.8% in 2018-19.
Market continued its lackluster trade for remaining part of the trading session, as investors got wary as India’s merchandise exports contracted by 1.11% in October 2019 as compared to same period of last year, mainly on account of a significant dip in shipments of petroleum, carpet, leather products, rice and tea. Trade deficit, gap between imports and exports, narrowed to $11.01 billion in October from $18.0 billion a year ago.
Traders were seen piling up positions in Media, Metal and Pharma, while selling was witnessed in Auto, FMGC and IT. The top gainers from the F&O segment were Vodafone Idea, Glenmark Pharmaceuticals and Century Textiles & Industries. On the other hand, the top losers were Yes Bank, Jubilant Foodworks and United Spirits. 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 4.82% and reached 15.75.The 50 share Nifty was down by 10.95 points or 0.09% to settle at 11,884.50.
Nifty November 2019 futures closed at 11925.00 (LTP) on Monday, at a premium of 40.50 points over spot closing of 11884.50, while Nifty December 2019 futures ended at 11967.25(LTP), at a premium of 82.75 points over spot closing. Nifty November futures saw an addition of 0.13 million (mn) units, taking the total outstanding open interest (OI) to 15.67 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 0.25 points at 65.50 (LTP) compared with spot closing of 65.75. The numbers of contracts traded were 48,064 (Provisional).
Bharti Airtel November 2019 futures traded at a premium of 1.45 points at 412.65(LTP) compared with spot closing of 411.20. The numbers of contracts traded were 35,026 (Provisional).
Glenmark Pharmaceuticals November 2019 futures traded at a premium of 0.50 points at 366.50 (LTP) compared with spot closing of 366.00. The numbers of contracts traded were 33,601 (Provisional).
Indiabulls Housing Finance November 2019 futures traded at a discount of 1.60 points at 205.85 (LTP) compared with spot closing of 207.45. The numbers of contracts traded were 29,089 (Provisional).
State Bank of India November 2019 futures traded at a premium of 0.85 points at 325.80 (LTP) compared with spot closing of 324.95. The numbers of contracts traded were 27,626 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 0.19 million open interests. Among Nifty puts, 11,900 from the November month expiry was the most active put with an addition of 0.14 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.40 mn) and that for Puts was at 11,600 SP (2.28 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,931.27 -- Pivot Point 11,899.43 -- Support -- 11,852.67.
The Nifty Put Call Ratio (PCR) finally stood at 1.20 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.60), Oil India (1.37), Bajaj Finserv (1.27), Bajaj Finance (1.14), and Adani Enterprises (1.08).
Among most active underlying, State Bank of India witnessed an addition of 0.50 million units of Open Interest in the November month futures contract, followed by Bharti Airtel witnessing an addition of 3.05 million units of Open Interest in the November month contract, Reliance Industries witnessed an addition of 0.20 million units of Open Interest in the November month contract, ICICI Bank witnessed an addition of 2.14 million units of Open Interest in the November month contract and Bharat Petroleum Corporation witnessed an addition of 0.84 million units of Open Interest in the November month future contract. (Provisional).
