Nifty ends lower; settles below 12,050 mark

After trading jubilantly in previous session, NSE gauge -- Nifty50 changed its gear on Tuesday, snapping the session with cut of one third percent. Market made a positive start as traders took encouragement with Union Minister Nitin Gadkari’s statement that the government is in the process of launching Digital data-based credit ratings of Micro, Small and Medium Enterprises (MSME), to help entrepreneurs to get bank loans on the basis of these credit ratings. Meanwhile, Finance minister Nirmala Sitharaman in Lok Sabha introduced the Taxation Laws (Amendment) Bill, 2019 that seeks to replace the ordinance, issued on September 20, to slash corporate tax rate to 22% without incentives and 15% for new manufacturing entities.

Key indices remained above its neutral line for the most part of the session, as the mood of the street remained optimistic, amid reports that Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labour laws to attract investment and make it easier to do business in a country where changing archaic rules is a challenge for any government. However, in last hour of trade, market lost its track totally and touched its intraday low, as sentiments turned negative as rating agency India Ratings and Research (Ind-Ra) revised its GDP growth forecast for the current financial year (FY20) to 5.6 per cent. This is the fourth revision and has come in after the agency had revised its FY20 GDP growth forecast only a month ago to 6.1 per cent.

Most of the NSE sectoral indices ended in red, except Bank, Financial services and PVT Bank. The top gainers from the F&O segment Amara Raja Batteries, Motherson Sumi Systems and ICICI Bank. On the other hand, the top losers were Vodafone Idea, Dish TV India and Zee Entertainment Enterprises. 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 1.10% and reached 14.83.The 50 share Nifty was down by 36.05 points or 0.30% to settle at 12,037.70.

Nifty November 2019 futures closed at 12,098.60 (LTP) on Tuesday, at a premium of 60.90 points over spot closing of 12,037.70, while Nifty December 2019 futures ended at 12,144.40 (LTP), at a premium of 106.70 points over spot closing. Nifty November futures saw an addition of 1.02 million (mn) units, taking the total outstanding open interest (OI) to 12.90 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 0.20 points at 64.40 (LTP) compared with spot closing of 64.20. The numbers of contracts traded were 1,24,726 (Provisional).

ICICI Bank November 2019 futures traded at a discount of 6.45 points at 506.55 (LTP) compared with spot closing of 513.00. The numbers of contracts traded were 1,05,781 (Provisional).

Indiabulls Housing Finance November 2019 futures traded flat 261.00 (LTP) with spot closing of 261.00. The numbers of contracts traded were 71,412 (Provisional).

Zee Entertainment Enterprises November 2019 futures traded at a premium of 0.65 points at 319.20 (LTP) compared with spot closing of 318.55. The numbers of contracts traded were 46,690 (Provisional).

Housing Development Finance Corporation November 2019 futures traded at a premium of 5.20 points at 2304.00 (LTP) compared with spot closing of 2298.80. The numbers of contracts traded were 45,909 (Provisional).

Among, Nifty calls, 12100 SP from the November month expiry was the most active call with an addition of 0.51 million open interests. Among Nifty puts, 12000 from the November month expiry was the most active put with a contraction of 0.11 units open interests. The maximum OI outstanding for Calls was at 12100 SP (2.96 mn) and that for Puts was at 12000 SP (4.76 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,111.32 -- Pivot Point 12,058.83 --Support --11,985.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.31 for November month contract. The top five scrips with highest PCR on Bharti Airtel (1.57), SRF (1.55), Indusind Bank (1.41), Bajaj Finserv (1.31) and Oil India (1.16).

Among most active underlying, ICICI Bank witnessed an addition of 33.43 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing an addition of 5.33 million units of Open Interest in the November month contract, State Bank of India witnessed an addition of 6.28 million units of Open Interest in the November month contract, Axis Bank witnessed an addition of 6.68 million units of Open Interest in the November month contract and Housing Development Finance Corporation witnessed an addition of 4.35 million units of Open Interest in the November month future contract (Provisional).