Indian equity benchmark -- Nifty -- ended on a strong note on Monday. After a positive start, market remained higher during the trading session, as traders were optimistic with the finance ministry stating that India's GST collection remained above Rs 1 lakh crore for the third month in a row at over Rs 1.17 lakh crore in September, raising expectations that the second half of the year will post higher revenues. Some support also came after rating agency ICRA in its latest report said that the higher-than-budgeted revenue collections, mostly higher tax devolution from the Centre, will help states reduce their market borrowing to Rs 7.6 lakh crore in FY22, which is 4.7 per cent lower than the year-ago level.
Domestic sentiments remained up-beat with report that corporate credit profiles showed strong improvement, with more rating upgrades than downgrades witnessed in the first half of the current fiscal, despite the severe second COVID wave. Adding some optimism, the Ministry of Commerce and Industry in its preliminary data showed that India’s merchandise exports jumped 21.35% to $33.44 billion in September 2021 as compared to $27.56 billion in September 2020, mainly due to better performance by key sectors like engineering goods and petroleum products.
All the sectoral indices ended in green. The top gainers from the F&O segment were Deepak Nitrite, National Aluminium Company and Aarti Industries. On the other hand, the top losers were Cummins India, Cipla and Indus Tower. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 16900 -17200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.76% and reached 16.74. The 50 share Nifty up by 159.20 points or 0.91% to settle at 17,691.25.
Nifty October 2021 futures closed at 17715.00 (LTP) on Monday, at a premium of 23.75 points over spot closing of 17691.25, while Nifty November 2021 futures ended at 17743.55 (LTP), at a premium of 52.30 points over spot closing. Nifty October futures saw an addition of 9,890 units, taking the total open interest (Contracts) to 2,50,253 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active contracts, Reliance Industries October 2021 futures traded at a premium of 3.00 points at 2561.00 compared with spot closing of 2558.00. The numbers of contracts traded were 29,397 (Provisional).
Tata Steel October 2021 futures traded at a premium of 7.50 points at 1329.50 compared with spot closing of 1322.00. The numbers of contracts traded were 21,271 (Provisional).
Divi's Laboratories October 2021 futures traded at a premium of 16.60 points at 5227.70 compared with spot closing of 5211.10. The numbers of contracts traded were 16,133 (Provisional).
SBIN October 2021 futures traded at a premium of 2.00 points at 464.50 compared with spot closing of 462.50. The numbers of contracts traded were 15,516 (Provisional).
Tata Power October 2021 futures traded at a premium of 0.80 points at 169.30 compared with spot closing of 168.50. The numbers of contracts traded were 14,888 (Provisional).
Among, Nifty calls, 18000 SP from the October month expiry was the most active call with an addition of 4,620 units open interests. Among Nifty puts, 17600 SP from the October month expiry was the most active put with an addition of 6,065 units open interests. The maximum OI outstanding for Calls was at 18000 SP (43,769 units) and that for Puts was at 17000 SP (66,191 units). The respective Support and Resistance levels of Nifty are: Resistance 17,767.65 -- Pivot Point -- 17,674.50 -- Support --17,598.10.
The Nifty Put Call Ratio (PCR) finally stood at (1.40) for October month contract. The top five scrips with highest PCR on Balkrishna Industries (1.46), Havells (0.92), Grasim (0.86), ZEEL (0.84) and Tata Power (0.80).
Among most active underlying, Tata Steel witnessed an addition of 1,352 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 4,260 units of Open Interest in the October month futures contract, IRCTC witnessed an addition of 2,592 units of Open Interest in the October month futures contract, Tata Power witnessed an addition of 438 units of Open Interest in the October month futures contract and Divi's Laboratories witnessed an addition of 308 units of Open Interest in the October month futures contract (Provisional).
