Bullish sentiments help Nifty to reclaim crucial 12,100 mark

Indian benchmark -- Nifty -- witnessed recovery on Wednesday, ending the session with gain of over half a percent, on the back of strong global cues along with buying among PSU Banks and auto shares. Market started the trade on a positive note and continued its momentum throughout the day, as sentiment got boost with the report that net investment of equity and debt reported by foreign portfolio investors (FPIs) stayed bullish with net buying logged at Rs 4,677.75 crore from Indian equities. The index remained in optimistic mood, as market participants took support with Union minister Piyush Goyal’s statement that India's service sector can help achieve the Central government's target of $5 trillion GDP. He said the service sector has the potential to be the largest job creators in the country and over the next five years it has the potential to contribute $3 trillion out of the $5 trillion GDP target set by the government.

However, market trimmed some of its initial gains in noon trade, as some mild weakness came with Fitch group firm India Ratings and Research stating that Indian economy may have slowed for the sixth consecutive quarter in July-September to 4.7 per cent and it lowered GDP growth forecast for current fiscal for the fourth time. But in last hour of trade, market picked up the speed once again and managed to close near its intraday high, as some strength came with private report indicated that the Reserve Bank of India is expected to cut interest rates in its December bi-monthly monetary policy and again before July.

Most of the NSE sectoral indices ended in green, except Media and Realty. The top gainers from the F&O segment Yes Bank, RBL Bank and TVS Motor Company. On the other hand, the top losers were Dish TV India, NCC and Bharti Infratel. 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 1.48% and reached 14.61.The 50 share Nifty was up by 63.00 points or 0.52% to settle at 12,100.70.

Nifty November 2019 futures closed at 12123.80 (LTP) on Wednesday, at a premium of 23.10 points over spot closing of 12100.70, while Nifty December 2019 futures ended at 12166.00 (LTP), at a premium of 65.30 points over spot closing. Nifty November futures saw an addition of 0.98 million (mn) units, taking the total outstanding open interest (OI) to 11.39 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 0.05 points at 68.35 (LTP) compared with spot closing of 68.40. The numbers of contracts traded were 61,034 (Provisional).

Housing Development Finance Corporation November 2019 futures traded at a discount of 0.70 points at 2335.30 (LTP) compared with spot closing of 2336.00. The numbers of contracts traded were 52,046 (Provisional).

Reliance Industries November 2019 futures traded at a premium of 1.70 points at 1576.80 (LTP) compared with spot closing of 1575.10. The numbers of contracts traded were 38,561 (Provisional).

ICICI Bank November 2019 futures traded flat at 506.75 (LTP) with spot closing of 506.75. The numbers of contracts traded were 36,865 (Provisional).

Indiabulls Housing Finance November 2019 futures traded at a premium of 0.65 points at 268.85 (LTP) compared with spot closing of 268.20. The numbers of contracts traded were 33,641 (Provisional).

Among, Nifty calls, 12100 SP from the November month expiry was the most active call with an addition of 1.19 million open interests. Among Nifty puts, 12100 from the November month expiry was the most active put with an addition of 13.22 units open interests. The maximum OI outstanding for Calls was at 12100 SP (29.90 mn) and that for Puts was at 12000 SP (45.48 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,125.35 --Pivot Point 12,090.25 --Support --12,065.60.

The Nifty Put Call Ratio (PCR) finally stood at 1.46 for November month contract. The top five scrips with highest PCR on SRF (1.80), Bharti Airtel (1.61), Indusind Bank (1.43), HDFC (1.36) and Oil India (1.33).

Among most active underlying, State Bank of India witnessed an addition of 2.16 million units of Open Interest in the November month futures contract, followed by Reliance Industries witnessing an addition of 7.71 million units of Open Interest in the November month contract, ICICI Bank witnessed a contraction of 0.87 million units of Open Interest in the November month contract, Housing Development Finance Corporation witnessed an addition of 4.00 million units of Open Interest in the November month contract and Maruti Suzuki India witnessed an addition of 0.42 million units of Open Interest in the November month future contract (Provisional).