Snapping four straight sessions of gains, Nifty ended the day’s trade with cut of over a percent. Market made negative start with private report that India is among the few major nations among emerging and developing economies with higher inflation in October 2020 compared to December 2019 (pre-Covid levels). Also, among these nations, the rise in core inflation is the highest in India. But, soon market gave up major losses to trade near neutral line in positive bias, as traders found support with Former chief economic adviser Arvind Virmani’s statement that India’s Gross domestic product (GDP) is likely to contract 7.5 percent in the current fiscal (FY21) but will see a double-digit growth in 2021-22. He noted that the central government has come up with some noteworthy reforms, including Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and setting up of the Monetary Policy Committee (MPC).
However, in late afternoon session, market entered into negative zone to trade deep in red, as WTO's latest Trade Monitoring Report on G20 stating that there is a slowdown in the number of trade restrictive as well as facilitative measures on goods implemented by G-20 member countries between mid-May and mid-October, due to the sharp decline in overall global trade since the COVID-19 outbreak.
Most of the sectoral indices ended in red except FMGC and Media. The top gainers from the F&O segment were Bharat Electronics, Tata Chemicals and Bata India. On the other hand, the top losers were Federal Bank, SBIN and Coal India. 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 increased by 2.35% and reached 19.57.The 50 share Nifty down by 166.55 points or 1.29% to settle at 12,771.70.
Nifty November 2020 futures closed at 12777.40 (LTP) on Thursday, at a premium of 5.70 points over spot closing of 12771.70, while Nifty December 2020 futures ended at 12795.45 (LTP), at a premium of 23.75 points over spot closing. Nifty November futures saw an addition of 2,950 units, taking the total open interest (Contracts) to 1,57,017. The near month derivatives contract will expire on November 26, 2020 (Provisional).
From the most active contracts, Bajaj Finance November 2020 futures traded at a premium of 5.80 points at 4534.00 (LTP) compared with spot closing of 4528.20. The numbers of contracts traded were 40,793(Provisional).
SBIN November 2020 futures traded at a premium of 0.80 points at 240.30 (LTP) compared with spot closing of 239.50. The numbers of contracts traded were 34,903 (Provisional).
Reliance Industries November 2020 futures traded at a premium of 3.60 points at 1975.60 (LTP) compared with spot closing of 1972.00. The numbers of contracts traded were 33,325 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 1.60 points at 478.40 (LTP) compared with spot closing of 476.80. The numbers of contracts traded were 31,791 (Provisional).
Indusind Bank November 2020 futures traded at a discount of 2.10 points at 810.25 (LTP) compared with spot closing of 812.35. The numbers of contracts traded were 27,139 (Provisional).
Among, Nifty calls, 13000 SP from the November month expiry was the most active call with an addition of 20,115 units open interests. Among Nifty puts, 12700 SP from the November month expiry was the most active put with an addition of 10,393 units open interests. The maximum OI outstanding for Calls was at 13000 SP (45,764 units) and that for Puts was at 12000 SP (49,896 units). The respective Support and Resistance levels of Nifty are: Resistance 12,907.88 -- Pivot Point 12,826.82 -- Support --12,690.63.
The Nifty Put Call Ratio (PCR) finally stood at (1.18) for November month contract. The top five scrips with highest PCR on Kotak Mahindra Bank (1.37), Eicher Motors (1.22), Bajaj Finance (1.22), Apollo Tyre (1.21) and MRF (1.17).
Among most active underlying, Bajaj Finance witnessed an addition of 292 units of Open Interest in the November month futures contract followed by Reliance Industries witnessed an addition of 651 units of Open Interest in the November month futures contract, SBIN witnessed a contraction of 351 units of Open Interest in the November month futures contract, Bajaj Finserv witnessed an addition of 1,191 units of Open Interest in the November month futures contract and ICICI Bank witnessed an addition of 4,893 units of Open Interest in the November month futures contract (Provisional).
