S&P CNX – Nifty continued to end the session at record closing high on Thursday. Market made positive start, taking support with World Bank president David Malpass’ statement that the Indian economy that was hit hard by the COVID-19 pandemic is now in recovery mode. He also said that India, which faces huge challenges of integrating more people into the formal sector economy and raising the earnings of the people, has made some progress but that's not enough. Further, market extended its gains, as Retailers Association of India (RAI) said that retail sales in September this year were at 96 percent of the pre-pandemic levels of the same month in 2019 as the sector shows signs of recovery.
Traders ignored that due to the COVID-19 and policies put in place to respond to it, the global debt has jumped to a new high of USD 226 trillion with India’s dues projected to rise to 90.6 per cent in 2021, the International Monetary Fund said. India's debt increased from 68.9 percent of its GDP in 2016 to 89.6 percent in 2020. It is projected to jump to 90.6 percent in 2021 and then decline to 88.8 percent in 2022, to gradually reach 85.2 percent in 2026. Index continued the gaining rally, as India’s inflation based on wholesale price index (WPI) eased to 10.66% in the month of September as against 11.39% in August. The annual rate of inflation is 10.66% (Provisional) for the month of September 2021 as compared to 1.32% in September 2020. Finally, Nifty ended the session above 18325 mark.
Most of the sectoral indices ended in green except Auto. The top gainers from the F&O segment were IRCTC, India Cements and Mindtree. On the other hand, the top losers were Motherson Sumi Systems, BHEL and Coal India. In the index option segment, maximum OI continues to be seen in the 18450 -18200 calls and 17400 -17700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.06% and reached 15.77. The 50 share Nifty up by 176.80 points or 0.97% to settle at 18,338.55.
Nifty October 2021 futures closed at 18356.75 (LTP) on Thursday, at a premium of 18.20 points over spot closing of 18338.55, while Nifty November 2021 futures ended at 18386.50 (LTP), at a premium of 47.95 points over spot closing. Nifty October futures saw a contraction of 2,798 units, taking the total open interest (OI) to 2,47,088 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active contracts, Infosys October 2021 futures traded at a discount of 14.50 points at 1699.50 (LTP) compared with spot closing of 1714.00. The numbers of contracts traded were 58,085 (Provisional).
ITC October 2021 futures traded at a premium of 0.30 points at 256.60 (LTP) compared with spot closing of 256.30. The numbers of contracts traded were 56,097 (Provisional).
Wipro October 2021 futures traded at a premium of 2.85 points at 711.85 (LTP) compared with spot closing of 709.00. The numbers of contracts traded were 52,701 (Provisional).
HDFC Bank October 2021 futures traded at a premium of 3.25 points at 1690.25 (LTP) compared with spot closing of 1687.00. The numbers of contracts traded were 33,803 (Provisional).
Tata Motors October 2021 futures traded at a premium of 1.35 points at 497.95 (LTP) compared with spot closing of 496.60. The numbers of contracts traded were 30,249 (Provisional).
Among, Nifty calls, 18500 SP from the October month expiry was the most active call with an addition of 3,709 units open interests. Among Nifty puts, 18200 SP from the October month expiry was the most active put with an addition of 9,664 units open interests. The maximum OI outstanding for Calls was at 18500 SP (39,081 units) and that for Puts was at 17500 SP (58,257 units). The respective Support and Resistance levels of Nifty are: Resistance 18,376.63 -- Pivot Point 18,312.67 -- Support -- 18,274.58.
The Nifty Put Call Ratio (PCR) finally stood at (1.63) for October month contract. The top five scrips with highest PCR on Titan Company (1.12), Tata Motors (1.01), Havells (0.98), Tata Power (0.89) and Bajaj Finserv (0.87).
Among most active underlying, Wipro witnessed a contraction of 1,057 units of Open Interest in the October month futures contract, Infosys witnessed an addition of 873 units of Open Interest in the October month futures contract, IRCTC witnessed an addition of 2,386 units of Open Interest in the October month futures contract, ITC witnessed an addition of 2,948 units of Open Interest in the October month futures contract and Tata Motors witnessed a contraction of 1,621 units of Open Interest in the October month futures contract (Provisional).
