Nifty continues dull trade for second consecutive session

Indian indices NSE gauge -- Nifty50 continued to trade in the red terrain for second consecutive session. After getting a weak start, index start drifting lower, as mood on the street was cautious with a report that centre delaying transfer of states’ share of GST collection that has been consistently falling this fiscal and poor non-tax mop-up, a majority of the states are going slow on their budgeted spending, which in the first half rose only 8.7%. Market continued its dull trade, as traders remained anxious with rating agency ICRA’s report that it expects further deterioration in the growth of India's GDP to 4.7% in Q2 of FY20, due to weakening momentum in industry. ICRA also forecast the country's gross value added (GVA) at basic prices in year-on-year (YoY) basis to 4.5% in the quarter ending September of FY20.

Market traded in the tight band till end of the session as traders remained concerned with Merger and Acquisition (M&A) deals in the month of October dropped by 45 percent in value terms and 40 percent in volume terms compared to the corresponding period last year. Finally, Nifty ended the sluggish day of trade with a cut of around half a percentage point, as some weakness came with the report that claiming that India will need another 22 years of sustained growth to become a developed country, former Reserve Bank of India (RBI) governor C Rangarajan said that at the current growth rate, India becoming a $5 trillion economy by 2025 is simply out of question.

Most of the NSE sectoral indices ended in red, except Auto, Media and Metal. The top gainers from the F&O segment Steel Authority of India, RBL Bank and Jindal Steel & Power. On the other hand, the top losers were Bharti Infratel, Castrol India and Indraprastha Gas. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,200 - 11,700 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.68% and reached 14.87.The 50 share Nifty was down by 54.00 points or 0.45% to settle at 11,914.40.

Nifty November 2019 futures closed at 11913.00 (LTP) on Friday, at a discount of 1.40 points over spot closing of 11914.40, while Nifty December 2019 futures ended at 11958.15 (LTP), at a premium of 43.75 points over spot closing. Nifty November futures saw an addition of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 14.51 mn units. The near month derivatives contract will expire on November 28, 2019 (Provisional).

From the most active contracts, Indiabulls Housing Finance November 2019 futures traded at a discount of 1.25 points at 233.30 (LTP) compared with spot closing of 234.55. The numbers of contracts traded were 48,873 (Provisional).

Zee Entertainment Enterprises November 2019 futures traded at a discount of 4.05 points at 351.90 (LTP) compared with spot closing of 355.95. The numbers of contracts traded were 45,581 (Provisional).

Yes Bank November 2019 futures traded at a discount of 0.05 points at 64.90 (LTP) compared with spot closing of 64.95. The numbers of contracts traded were 43,397 (Provisional).

Reliance Industries November 2019 futures traded at a discount of 0.30 points at 1547.75 (LTP) compared with spot closing of 1548.05. The numbers of contracts traded were 34,582 (Provisional).

Infosys November 2019 futures traded at a discount of 0.95 points at 692.00 (LTP) compared with spot closing of 692.95. The numbers of contracts traded were 25,640 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 11.76 million open interests. Among Nifty puts, 11900 from the November month expiry was the most active put with an addition of 0.003 units open interests. The maximum OI outstanding for Calls was at 12000 SP (4.97 mn) and that for Puts was at 11,500 SP (2.97 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,960.50 -- Pivot Point 11,922.00 -- Support -- 11,875.90.

The Nifty Put Call Ratio (PCR) finally stood at 0.97 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.61), Bajaj Finserv (1.36), Zee Entertainment Enterprises (1.31), SRF (1.23) and  Bajaj Finance (1.13).

Among most active underlying, Reliance Industries witnessed an addition of 2.17 million units of Open Interest in the November month futures contract, followed by Infosys witnessing an addition of 4.87 million units of Open Interest in the November month contract, State Bank of India witnessed a contraction of 1.50 million units of Open Interest in the November month contract, Zee Entertainment Enterprises witnessed an addition of 3.55 million units of Open Interest in the November month contract and ICICI Bank witnessed a contraction of 3.11 million units of Open Interest in the November month future contract (Provisional).