After trading in optimistic mood, barometer 50 share index -- CNX Nifty -- closed the trading session 0.49% higher on Wednesday, extending its northward journey for second consecutive day. Market made a positive start, as traders took encouragement with Union minister Piyush Goyal’s statement that the government has strengthened several trade remedial measures, with an aim to provide a level-playing field for the domestic industry and protect it from unfair trade practices in a time-bound manner.
Further, trade brought some more cheer to the market and touched its psychological 12000 mark, as traders remained enthusiastic with the report that the Centre is planning to set up a dedicated cell for agriculture startups and small entrepreneurs. National Rainfed Area Authority (NRRA) CEO Ashok Dalwai said there are numerous areas where startups can help farmers reduce cost and increase income. However, in second half of the session, market came off from intraday highpoint, as some anxiety spread among the investors with ratings agency CARE Ratings’ report that the pace of employment growth in India has slowed down in the past two years, to 3.9 percent in 2017-18 and 2.8 percent in 2018-19 as the core industries have observed virtually, negative growth in hiring.
Most of the NSE sectoral indices ended in green, except PSU Bank, Realty and Financial services. The top gainers from the F&O segment Vodafone Idea, Dish TV India and Zee Entertainment Enterprises. On the other hand, the top losers were Bharti Infratel, Indiabulls Housing Finance and Siemens. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,700 - 12,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 1.64% and reached 15.16.The 50 share Nifty was up by 59.00 points or 0.49% to settle at 11,999.10.
Nifty November 2019 futures closed at 12014.30 (LTP) on Wednesday, at a premium of 15.20 points over spot closing of 11999.10, while Nifty December 2019 futures ended at 12058.00 (LTP), at a premium of 58.90 points over spot closing. Nifty November futures saw an addition of 0.41 million (mn) units, taking the total outstanding open interest (OI) to 16.01 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 0.15 points at 66.05 (LTP) compared with spot closing of 65.90. The numbers of contracts traded were 66,420 (Provisional).
Reliance Industries November 2019 futures traded at a discount of 1.00 points at 1547.50 (LTP) compared with spot closing of 1548.50. The numbers of contracts traded were 53,883 (Provisional).
Vodafone Idea November 2019 futures traded at a discount of 0.10 points at 7.05 (LTP) compared with spot closing of 7.15. The numbers of contracts traded were 40,823 (Provisional).
Zee Entertainment Enterprises November 2019 futures traded at a premium of 1.65 points at 310.70 (LTP) compared with spot closing of 309.05. The numbers of contracts traded were 40,785 (Provisional).
Bharti Airtel November 2019 futures traded at a premium of 1.60 points at 439.00 (LTP) compared with spot closing of 437.40. The numbers of contracts traded were 36,393 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a contraction of 0.28 million open interests. Among Nifty puts, 12000 from the November month expiry was the most active put with an addition of 0.99 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.48 mn) and that for Puts was at 11,900 SP (2.58 mn). The respective Support and Resistance levels of Nifty are: Resistance -- 12,036.45 -- Pivot Point --12,001.25 --Support --11,963.90.
The Nifty Put Call Ratio (PCR) finally stood at 1.35 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.84), Bajaj Finserv (1.31), Indusind Bank (1.26), Bajaj Finance (1.14) and Union Bank of India (1.06).
Among most active underlying, Reliance Industries witnessed an addition of 1.55 million units of Open Interest in the November month futures contract, followed by Bharti Airtel witnessing a contraction of 0.35 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 1.26 million units of Open Interest in the November month contract, Bharat Petroleum Corporation witnessed an addition of 2.05 million units of Open Interest in the November month contract and Sun Pharmaceutical Industries witnessed an addition of 2.76 million units of Open Interest in the November month future contract.
