Nifty closes above 12,050 level

The local benchmark, Nifty performed in jubilant mood throughout the day and snapped the day’s trade on an impressive note by crossing its crucial 12,050 level. Earlier, the index made a soft opening with positive bias and started adding its gains, as traders took encouragement with data showing that after declining for four consecutive months, investments through participatory notes (P-notes) in the Indian capital market marginally rose to Rs 76,773 crore at the end of October. Market continued to trade bullish, as sentiment got a boost with the report with Commerce and industry minister Piyush Goyal’s statement that reform momentum towards self-certification, labour laws and environment clearance will boost investment and production.

Local market carried on its strong run till the end of the day, as traders remained in optimistic mood with survey by the National Statistical Office (NSO) showing that urban unemployment rate dropped to the lowest level in four quarters at 9.3 per cent during January-March 2019. Finally, Nifty ended the splendid day of the trade with a gain over a percent, as market mood remained up with the Reserve Bank of India (RBI) data showed that India's forex reserves rose by $441 million to a fresh lifetime high of $448.249 billion in the week to November 15 on an increase in core currency assets.

Most of the NSE sectoral indices ended in green, except Media. The top gainers from the F&O segment Indiabulls Housing Finance, Bharti Airtel and L&T Finance Holdings. On the other hand, the top losers were Zee Entertainment Enterprises, Bharat Electronics and Oil & Natural Gas Corporation. 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 increased by 0.87% and reached 15.00.The 50 share Nifty was up by 159.35 points or 1.34% to settle at 12,073.75.

Nifty November 2019 futures closed at 12102.75 (LTP) on Monday, at a premium of 29.00 points over spot closing of 12073.75, while Nifty December 2019 futures ended at 12148.00 (LTP), at a premium of 74.25 points over spot closing. Nifty November futures saw an addition of 0.84 million (mn) units, taking the total outstanding open interest (OI) to 14.07 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 64.05 (LTP) compared with spot closing of 63.90. The numbers of contracts traded were 82,480 (Provisional).

Indiabulls Housing Finance November 2019 futures traded at a premium of 0.50 points at 266.00 (LTP) compared with spot closing of 265.50. The numbers of contracts traded were 60,151 (Provisional).

Housing Development Finance Corporation November 2019 futures traded at a premium of 3.55 points at 2297.55 (LTP) compared with spot closing of 2294.00. The numbers of contracts traded were 45,636 (Provisional).

Reliance Industries November 2019 futures traded at a premium of 0.90 points at 1562.90 (LTP) compared with spot closing of 1562.00. The numbers of contracts traded were 30,984 (Provisional).

ICICI Bank November 2019 futures traded at a premium of 0.60 points at 499.05 (LTP) compared with spot closing of 498.45. The numbers of contracts traded were 30,506 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a contraction of 18.94 million open interests. Among Nifty puts, 12000 from the November month expiry was the most active put with an addition of 30.47 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.98 mn) and that for Puts was at 12000 SP (5.05 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,132.25 -- Pivot Point 12,026.00 -- Support -- 11,967.50.

The Nifty Put Call Ratio (PCR) finally stood at 1.50 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.82), SRF (1.36), Bajaj Finserv (1.35), Indusind Bank (1.26) and Bajaj Finance (1.25).

Among most active underlying, Reliance Industries witnessed an addition of 5.40 million units of Open Interest in the November month futures contract, followed by State Bank of India witnessing an addition of 1.38 million units of Open Interest in the November month contract, Housing Development Finance Corporation witnessed an addition of 6.41 million units of Open Interest in the November month contract, Bharti Airtel witnessed an addition of 1.20 million units of Open Interest in the November month contract and ICICI Bank witnessed an addition of 4.55 million units of Open Interest in the November month future contract (Provisional).