Indian equity benchmark -- Nifty – ended with huge losses on Wednesday. Index made a positive start of the day, as Moody's Investors Service changed its outlook on India's sovereign ratings to stable from negative. Besides, it retained the ratings, both on foreign and domestic currencies, at Baa3. Traders took a note of Care Ratings’ report stated that the weighted average cost for borrowing across the states and maturities has risen to a two-month high of 6.91 per cent, up 6 basis points (bps) over the past week. According to the report, the rise in the yields of state bonds follows the uptick in yields of government securities (G-Secs) in recent days.
But soon, market turned volatile and witnessed sharp fall in the second half of the trading session, on the back of negative cues from European markets. Domestic sentiments got hit as the International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast of 6%, citing risks associated with debt, inflation and divergent economic trends in the wake of the COVID-19 pandemic. Traders remained cautious amid reports that as global trade picks up pace after the ravages of the pandemic, an industry lobby's survey has found that an overwhelming number of exporters are worried about competitiveness.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 5.70% and reached 17.33. The 50 share Nifty down by 176.30 points or 0.99% to settle at 17,646.00.
Nifty October 2021 futures closed at 17,611.00 (LTP) on Wednesday, at a discount of 35 points over spot closing of 17,646.00, while Nifty November 2021 futures ended at 17,649.00 (LTP), at a premium of 3 points over spot closing. Nifty October futures saw an addition of 26,880 units, taking the total open interest (Contracts) to 2,68,185 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active future contracts, Reliance Industries October 2021 futures traded at a premium of 7.95 points at 2,561.95 (LTP) compared with spot closing of 2,554.00. The numbers of contracts traded were 35,386 (Provisional).
HDFC Bank October 2021 futures traded at a discount of 3 points at 1,610.00 (LTP) compared with spot closing of 1,613.00. The numbers of contracts traded were 27,553 (Provisional).
IRCTC October 2021 futures traded at a premium of 9.25 points at 4,492.00 (LTP) compared with spot closing of 4,482.75. The numbers of contracts traded were 25,321 (Provisional).
SBIN October 2021 futures traded at a premium of 0.25 points at 457.10 (LTP) compared with spot closing of 456.85. The numbers of contracts traded were 23,668 (Provisional).
Tata Steel October 2021 futures traded at par at 1,274.00 (LTP) compared with spot closing of 1,274.00. The numbers of contracts traded were 18,960 (Provisional).
Among, Nifty calls, 18000 SP from the October month expiry was the most active call with a contraction of 1,378 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with an addition of 3,435 units open interests.
The maximum OI outstanding for Calls was at 18000 SP (43,821 units) and that for Puts was at 17000 SP (68,076 units).
The respective Support and Resistance levels of Nifty are: Resistance 17816.02 -- Pivot Point 17714.58 -- Support -- 17544.57.
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 (1.25), ZEEL (0.86), Havells (0.80), Grasim (0.78) and Tata Power (0.77).
Among most active underlying, IRCTC witnessed an addition of 850 units of Open Interest in the October month futures contract, HDFC Bank witnessed an addition of 2,869 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 4,475 units of Open Interest in the October month futures contract, Tata Steel witnessed an addition of 1,579 units of Open Interest in the October month futures contract and Tata Power witnessed an contraction of 525 units of Open Interest in the October month futures contract (Provisional).
