NSE benchmark index -- Nifty -- closed its Wednesday’s session near low point. Market made positive start after Union Commerce and Industry Minister Piyush Goyal has said that the results of the second quarter of major companies show that profitability of most of them has gone up, indicating that the Indian industry has utilized the Covid period to do the belt-tightening, improve the product-mix, and focus on quality and productivity. However, index failed to protect gains and entered into red zone with S&P Global Ratings’ statement that non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months. Selling got intensified during the late afternoon session after a senior finance ministry official said that India's score on protection of minority investors compiled by the World Bank as part of the Ease of Doing Business rankings has slipped recently and there is a need for stakeholders to improve on this aspect.
Most the sectoral indices ended in red except PSU Bank. The top gainers from the F&O segment were ONGC, Bank of Boroda and Shriram Transport Finance Company. On the other hand, the top losers were Vodafone Idea, Jubilant Foodworks and SPF. In the index option segment, maximum OI continues to be seen in the 12500 - 13,700 calls and 11,900 – 13,000 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 9.94% and reached 23.15.The 50 share Nifty down by 196.75 points or 1.51% to settle at 12,858.40.
Nifty November 2020 futures closed at 12856.70 (LTP) on Wednesday, at a discount of 1.70 points over spot closing of 12858.40, while Nifty December 2020 futures ended at 12890.00 (LTP) , at a premium of 31.60 points over spot closing. Nifty November futures saw an addition of 6,748 units, taking the total open interest (Contracts) to 1,22,844 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 1.90 points at 1949.40 (LTP) compared with spot closing of 1947.50. The numbers of contracts traded were 43,185 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 0.10 points at 472.30 (LTP) compared with spot closing of 472.20. The numbers of contracts traded were 34,819 (Provisional).
HDFC Bank November 2020 futures traded at a premium of 4.90 points at 1411.40 (LTP) compared with spot closing of 1406.50. The numbers of contracts traded were 33,694 (Provisional).
HDFC November 2020 futures traded at a discount of 0.30 points at 2186.50 (LTP) compared with spot closing of 2186.80. The numbers of contracts traded were 32,520 (Provisional).
SBIN November 2020 futures traded at a discount of 0.35 points at 242.65 (LTP) compared with spot closing of 243.00. The numbers of contracts traded were 29,751 (Provisional).
Among, Nifty calls, 13100 SP from the November month expiry was the most active call with an addition of 25,050 units open interests. Among Nifty puts, 12800 SP from the November month expiry was the most active put with a contraction of 3,573 units open interests. The maximum OI outstanding for Calls was at 13500 SP (67,401 units) and that for Puts was at 12800 SP (55,342 units). The respective Support and Resistance levels of Nifty are: Resistance 13,058.28 -- Pivot Point 12,945.97 -- Support -- 12,746.08.
The Nifty Put Call Ratio (PCR) finally stood at (1.02) for November month contract. The top five scrips with highest PCR on Kotak Mahindra Bank (1.40), Shriram Transport Finance Company (1.38),Tata Steel (1.37), Bajaj Finance (1.36) and Cholamandalam Investment and Fin Co (1.31).
Among most active underlying, Reliance Industries witnessed an addition of 1,194 units of Open Interest in the November month futures contract followed by HDFC Bank witnessed an addition of 530 units of Open Interest in the November month futures contract, Bajaj Finance witnessed a contraction of 1,648 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 9,165 units of Open Interest in the November month futures contract and SBIN witnessed an addition of 1,696 units of Open Interest in the November month futures contract (Provisional).
