After trading most of the time below neutral line, domestic benchmark S&P CNX -- Nifty -- managed to end the day’s trade with marginal gains. Market made positive start, but soon dropped down in red zone with a private report that the pandemic-induced growth contraction and additional spending to support the needy amounting to a little over 2 percent of the economy are likely to push the combined fiscal deficit to 13 percent of GDP this fiscal - nearly double of the past year. Further, market continued its weak trade even after, Ministry of Finance has said the Goods and Services Tax (GST) revenue collections for the month of October 2020 were Rs 1,05,155 crore, which is 10 percent higher than October 2019. This made it the first time monthly revenues crossed the Rs 1 lakh crore mark in FY21.
However, in late afternoon trade market wiped out all its early losses and ended with minor gains, as India's manufacturing sector activity improved for the third straight month in October with companies raising output to the greatest extent in 13 years amid robust sales growth. The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 56.8 in September to 58.9 in October, and pointed to the strongest improvement in the health of the sector in over a decade.
Traders were seen piling positions in Bank, FMGC and PSU Bank sector while selling was witnessed in Metal, Auto and IT sector stocks. The top gainers from the F&O segment were Godrej Properties, Shriram Transport Finance Company and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Reliance Industries, Coforge and Tata Chemicals. In the index option segment, maximum OI continues to be seen in the 11,700 - 12,500 calls and 10,900 - 11,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.84% and reached 25.21.The 50 share Nifty up by 26.75 points or 0.23% to settle at 11,669.15.
Nifty November 2020 futures closed at 11673.45 (LTP) on Monday, at a premium of 4.30 points over spot closing of 11669.15, while Nifty December 2020 futures ended at 11693.00 (LTP), at a premium of 23.85 points over spot closing. Nifty November futures saw a contraction of 2,374 units, taking the total open interest (Contracts) to 1,44,001. The near month derivatives contract will expire on November 26, 2020 (Provisional).
From the most active contracts, Reliance Industries November 2020 futures traded at a premium of 5.00 points at 1881.00 (LTP) compared with spot closing of 1876.00. The numbers of contracts traded were 1,20,190 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 1.70 points at 417.95 (LTP) compared with spot closing of 416.25. The numbers of contracts traded were 66,894(Provisional).
Axis Bank November 2020 futures traded at a premium of 0.95 points at 522.85 (LTP) compared with spot closing of 521.90. The numbers of contracts traded were 36,317 (Provisional).
Indusind Bank November 2020 futures traded at a premium of 3.10 points at 626.55 (LTP) compared with spot closing of 623.45. The numbers of contracts traded were 34,395 (Provisional).
SBIN November 2020 futures traded at a premium of 0.70 points at 196.70 (LTP) compared with spot closing of 196.00. The numbers of contracts traded were 28,288 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 459 units open interests. Among Nifty puts, 11000 SP from the November month expiry was the most active put with an addition of 6,793 units open interests. The maximum OI outstanding for Calls was at 12000 SP (21,398 units) and that for Puts was at 11000 SP (35,770 units). The respective Support and Resistance levels of Nifty are: Resistance 11,744.07 -- Pivot Point 11,650.73 -- Support -- 11,575.82.
The Nifty Put Call Ratio (PCR) finally stood at (1.56) for November month contract. The top five scrips with highest PCR on Bosch (1.75), ICICI Lombard General Insurance (1.46), Kotak Mahindra Bank (0.98), Cummins India (0.91) and TVS Motor Company (0.91)
Among most active underlying, Reliance Industries witnessed an addition of 9,687 units of Open Interest in the November month futures contract followed by ICICI Bank witnessed an addition of 7,120 units of Open Interest in the November month futures contract, Axis Bank witnessed an addition of 2,142 units of Open Interest in the November month futures contract, Bajaj Finance witnessed an addition of 679 units of Open Interest in the November month futures contract and Bharti Airtel witnessed an addition of 609 units of Open Interest in the November month futures contract (Provisional).
