The local benchmark -- Nifty -- extended its gaining spree for second day and ended above 12900 mark on Monday. Market made positive start, as traders took support with report that Foreign Portfolio Investors (FPI) have continued to buy domestic equities and debt instruments. So far in November FPIs have bought Rs 44,378 crore worth of stocks and Rs 5,175 crore worth of debt. Though, market witnessed some volatility during the day as traders remained cautious with report that as many as 437 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of over Rs 4.37 lakh crore.
In the second half of the trade, market gained traction and added more points after Reserve Bank of India (RBI) in its latest data has showed that bank credit grew by 5.67 per cent to Rs 104.04 lakh crore, while deposits increased by 10.63 per cent to Rs 143.80 lakh crore in the fortnight ended November 6. In the fortnight ended November 8, 2019, bank credit stood at Rs 98.46 lakh crore and deposits at Rs 129.98 lakh crore. Finally, Nifty finished the first day of trading week with the gains of above half a percent.
Most of the sectoral indices ended in green except Bank, PSU Bank and Private Bank. The top gainers from the F&O segment were IDFC First Bank, BHEL and ONGC. On the other hand, the top losers were HDFC, ICICI Bank and Petronet LNG. 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 6.09% and reached 20.81.The 50 share Nifty up by 67.40 points or 0.52% to settle at 12,926.45.
Nifty November 2020 futures closed at 12941.00 (LTP) on Monday, at a premium of 14.55 points over spot closing of 12926.45, while Nifty December 2020 futures ended at 12960.00 (LTP), at a premium of 33.55 points over spot closing. Nifty November futures saw an addition of 2,850 units, taking the total outstanding open interest (Contracts) to 1,50,754 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 5.80 points at 1961.00 (LTP) compared with spot closing of 1955.20. The numbers of contracts traded were 59,601 (Provisional).
Indusind Bank November 2020 futures traded at a discount of 0.70 points at 841.00 (LTP) compared with spot closing of 841.70. The numbers of contracts traded were 45,902 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 1.50 points at 469.80 (LTP) compared with spot closing of 468.30. The numbers of contracts traded were 44,799 (Provisional).
Bajaj Finance November 2020 futures traded at a discount of 34.50 points at 4755.50 (LTP) compared with spot closing of 4790.00. The numbers of contracts traded were 38,935 (Provisional).
HDFC November 2020 futures traded at a premium of 5.35 points at 2258.40 (LTP) compared with spot closing of 2253.05. The numbers of contracts traded were 37,166 (Provisional).
Among, Nifty calls, 13000 SP from the November month expiry was the most active call with an addition of 3,033 units open interests. Among Nifty puts, 12800 SP from the November month expiry was the most active put with an addition of 5,178 units open interests. The maximum OI outstanding for Calls was at 13500 SP (54,911 units) and that for Puts was at 12000 SP (54,839 units). The respective Support and Resistance levels of Nifty are: Resistance 12,988.30 -- Pivot Point 12,907.00 -- Support --12,845.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for November month contract. The top five scrips with highest PCR on Eicher Motors (1.37), Kotak Mahindra Bank (1.35), Bajaj Finance (1.29), Cholamandalam Investment and Fin Co (1.23) and Tata Steel (1.15).
Among most active underlying, Reliance Industries witnessed an addition of 2,696 units of Open Interest in the November month futures contract followed by Bajaj Finance witnessed an addition of 2,500 units of Open Interest in the November month futures contract, Indusind Bank witnessed an addition of 3,899 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 17,082 units of Open Interest in the November month futures contract and Bajaj Finserv witnessed an addition of 518 units of Open Interest in the November month futures contract (Provisional).
