Nifty ends in green on Friday

After spending most of time below neutral line, CNX S&P -- Nifty -- ended the session marginally higher. Market made negative start, as retail inflation soared to a 77-month high in October led by a surge in food prices. The inflation based on the Consumer Price Index (CPI) was 4.62 percent for the same period a year ago. Market traded cautiously, altering between positive and negative terrain even after Finance Minister Nirmala Sitharaman said the Indian economy is witnessing a strong recovery after a long and strict lockdown. She said macro-economic indicators are pointing towards recovery. However, in the last leg of trade market recovered from losses to trade above 12700 marks, as industrial production, measured on the basis of Index of Industrial Production (IIP), grew slightly by 0.2 per cent in September 2020 with higher output of mining and power generation sectors. The IIP had contracted by 4.6 per cent in September 2019, while 7.36 per cent contraction posted in August 2020. Meanwhile, Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on November 19. RBI said that the decision was taken after a review of the current liquidity and financial conditions.

Most of the sectoral indices ended in green except FMGC and Media. The top gainers from the F&O segment were Apollo Hospitals, Eicher Motors and Jubilant FoodWorks. On the other hand, the top losers were Sun TV Network, Tata Motors and ZEEL. In the index option segment, maximum OI continues to be seen in the 12500 - 13,700 calls and 11,900 - 12,800 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.44% and reached 19.70.The 50 share Nifty up by 29.15 points or 0.23% to settle at 12,719.95.

Nifty November 2020 futures closed at 12753.40 (LTP) on Friday, at a premium of 33.45 points over spot closing of 12719.95, while Nifty December 2020 futures ended at 12770.95(LTP), at a premium of 51.00 points over spot closing.  Nifty November futures saw an addition of 5,632 units, taking the total open interest (Contracts) to 1,61,641. 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 7.50 points at 2007.20 (LTP) compared with spot closing of 1999.70. The numbers of contracts traded were 47,695 (Provisional).

ICICI Bank November 2020 futures traded at a premium of 0.35 points at 485.80 (LTP) compared with spot closing of 485.45. The numbers of contracts traded were 32,003 (Provisional).

SBIN November 2020 futures traded at a premium of 0.40 points at 230.75 (LTP) compared with spot closing of 230.35. The numbers of contracts traded were 29,427 (Provisional).

Bajaj Finance November 2020 futures traded at a discount of 17.70 points at 4360.30 (LTP) compared with spot closing of 4378.00. The numbers of contracts traded were 28,376 (Provisional).

Axis Bank November 2020 futures traded flat with spot closing of 611.00. The numbers of contracts traded were 25,959 (Provisional).

Among, Nifty calls, 13000 SP from the November month expiry was the most active call with an addition of 158 units open interests. Among Nifty puts, 12500 SP from the November month expiry was the most active put with an addition of 3,906 units open interests. The maximum OI outstanding for Calls was at 13000 SP (26,478 units) and that for Puts was at 12000 SP (44,393 units). The respective Support and Resistance levels of Nifty are: Resistance 12,768.03 -- Pivot Point 12,687.87 -- Support -- 12,639.78.

The Nifty Put Call Ratio (PCR) finally stood at (1.58) for November month contract. The top five scrips with highest PCR on Bajaj Finance (1.42), Kotak Mahindra Bank (1.30), Axis Bank (1.17), Cholamandalam Investment (1.17) and Eicher Motors (1.13).

Among most active underlying, Reliance Industries witnessed an addition of 3,518 units of Open Interest in the November month futures contract followed by Bajaj Finance witnessed an addition of 1,537 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 3,204 units of Open Interest in the November month futures contract, SBIN witnessed an addition of 1,423 units of Open Interest in the November month futures contract and Eicher Motors witnessed a contraction of 1,887 units of Open Interest in the November month futures contract (Provisional).