Continuing its upward journey for the third consecutive session with Nifty finished the day’s trade with gains of above half a percent. Market made a slightly positive start, as terming elevated food prices a temporary phenomenon, Economic Affairs Secretary Tarun Bajaj said it should be back to normal soon on the back of arrival of new crops and government measures for improving supply of essential commodities. Separately, he said Finance Minister Nirmala Sitharaman will soon announce the next set of stimulus package to boost the coronavirus-hit economy. Further, market extended its gains with private report stated that India has a unique opportunity to adopt a more inclusive and proactive role in leveraging its vast pool of skilled resources, competitive costing and developed eco-system for select sectors to get ahead in the global supply chain reconfiguration race.
However, in late afternoon session market entered into negative zone, as the Commerce Ministry in its latest data has showed that India’s merchandise exports fell by 5.4 percent to $24.82 billion in October 2020 as compared to $26.23 billion in the same month a year ago, on account of dip in shipments of petroleum products, gems and jewellery, leather, and engineering goods. But, market again bounced back into positive territory, as India’s service sector signalled solid expansion in the month of October, as the relaxation of COVID-19 restrictions enabled to secure new work and lift business activity. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 54.1 in October from 49.8 in September.
Most of the sectoral indices ended in green except Media, Financial services and Realty. The top gainers from the F&O segment were Indusind Bank, Sun Pharmaceutical and Divi Lab. On the other hand, the top losers were UPL, Vedanta and Godrej Properties. 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 decreased by 4.29% and reached 23.20.The 50 share Nifty up by 95.00 points or 0.80% to settle at 11,908.50.
Nifty November 2020 futures closed at 11907.60 (LTP) on Wednesday, at a discount of 0.90 points over spot closing of 11908.50, while Nifty December 2020 futures ended at 11925.00 (LTP), at a premium of 16.50 points over spot closing. Nifty November futures saw an addtion of 10,733 units, taking the total outstanding open interest (Contracts) to 1,44,368 units. 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 6.20 points at 1916.70 (LTP) compared with spot closing of 1910.50. The numbers of contracts traded were 86,301 (Provisional).
SBIN November 2020 futures traded at a premium of 0.90 points at 206.40 (LTP) compared with spot closing of 205.50. The numbers of contracts traded were 60,077 (Provisional).
Sun Pharmaceutical Industries November 2020 futures traded at a premium of 1.10 points at 504.60 (LTP) compared with spot closing of 503.50. The numbers of contracts traded were 36,941 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 2.00 points at 436.35 (LTP) compared with spot closing of 434.35. The numbers of contracts traded were 36,677 (Provisional).
Indusind Bank November 2020 futures traded at a premium of 1.35 points at 679.55 (LTP) compared with spot closing of 678.20. The numbers of contracts traded were 33,819 (Provisional).
Among, Nifty calls, 12000 SP from the November month expiry was the most active call with an addition of 4,510 units open interests. Among Nifty puts, 11500 SP from the November month expiry was the most active put with an addition of 698 units open interests. The maximum OI outstanding for Calls was at 12000 SP (24,574 units) and that for Puts was at 11000 SP (34,301 units). The respective Support and Resistance levels of Nifty are: Resistance 11,973.30 -- Pivot Point 11,864.85 -- Support -- 11,800.05.
The Nifty Put Call Ratio (PCR) finally stood at (1.51) for November month contract. The top five scrips with highest PCR on Indusind Bank (1.06), Kotak Mahindra Bank (1.02), Havells (1.00), Bosch (1.00) and ICICI Lombard General Insurance (0.96).
Among most active underlying, Reliance Industries witnessed an addition of 257 units of Open Interest in the November month futures contract followed by SBIN witnessed an addition of 2,484 units of Open Interest in the November month futures contract, Sun Pharmaceutical witnessed a contraction of 2,861 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 532 units of Open Interest in the November month futures contract and Infosys witnessed an addition of 1,777 units of Open Interest in the November month futures contract (Provisional).
