Indian equity benchmark -- Nifty -- ended Monday’s session above 18450 mark. Market made optimistic start, as Minister of State for External Affairs V Muraleedharan said the Indian economy is bouncing back strongly, domestic consumption is increasing and industrial production is at pre-COVID level, he also emphasized that the reforms implemented by the government has provided fillip to the business ecosystem in the country. Further, market maintained its gains, as country's foreign exchange reserves rose by USD 2.039 billion to USD 639.516 billion in the week ended October 8, according to RBI data.
Market continued firm trade till the end with Union Finance Minister Nirmala Sitharaman’s statement that the Indian government remains committed to bring the economy on the path of fiscal consolidation in the near-to-medium term, setting the target to reduce fiscal deficit to 4.5 per cent by 2025-26. She also said the government is ready to provide additional capital to Public Sector Banks (PSBs) as and when needed and the trajectory of inflation is also shifting down more favourably than anticipated. Traders ignored reports that Foreign portfolio investors (FPI) have turned net sellers in the capital markets in October so far, reversing the trend of net investments in the previous two months, due to depreciation in the rupee and global factors.
Most of the sectoral indices ended in green except Media, Pharma and Healthcare Index. The top gainers from the F&O segment were Tata power, Vedanta and National Aluminium Company. On the other hand, the top losers were SRF, MCX and Amara Raja Batteries. In the index option segment, maximum OI continues to be seen in the 18900 -19200 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 increased by 8.99% and reached 17.19. The 50 share Nifty up by 138.50 points or 0.76% to settle at 18,477.05.
Nifty October 2021 futures closed at 18487.90 (LTP) on Monday, at a premium of 10.85 points over spot closing of 18477.05 (LTP), while Nifty November 2021 futures ended at 18531.95 , at a premium of 54.90 points over spot closing. Nifty October futures saw an addition of 1,813 units, taking the total open interest (OI) to 2,45,333 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active contracts, HDFC Bank October 2021 futures traded at a discount of 6.00 points at 1668.50 (LTP) compared with spot closing of 1674.50. The numbers of contracts traded were 42,159 (Provisional).
Tata Power October 2021 futures traded at a premium of 1.30 points at 261.30 (LTP) compared with spot closing of 260.00. The numbers of contracts traded were 36,976 (Provisional).
HCL Tech October 2021 futures traded at a discount of 4.85 points at 1220.00 (LTP) compared with spot closing of 1224.85. The numbers of contracts traded were 36,597 (Provisional).
Infosys October 2021 futures traded at a discount of 15.50 points at 1782.50 (LTP) compared with spot closing of 1798.00. The numbers of contracts traded were 33,872 (Provisional).
Reliance Industries October 2021 futures traded at a premium of 9.20 points at 2717.00 (LTP) compared with spot closing of 2707.80. The numbers of contracts traded were 33,706 (Provisional).
Among, Nifty calls, 19000 SP from the October month expiry was the most active call with an addition of 3,299 units open interests. Among Nifty puts, 18500 SP from the October month expiry was the most active put with an addition of 26,173 units open interests. The maximum OI outstanding for Calls was at 19000 SP (35,511 units) and that for Puts was at 17500 SP (60,886 units). The respective Support and Resistance levels of Nifty are: Resistance 18,531.70 -- Pivot Point 18,488.50 -- Support --18,433.85.
The Nifty Put Call Ratio (PCR) finally stood at (1.72) for October month contract. The top five scrips with highest PCR on Tata Motors (0.98), Titan Company (0.97), Tata Power (0.96), IRCTC (0.93) and Bajaj Finserv (0.86).
Among most active underlying, Tata Power witnessed an addition of 61 units of Open Interest in the October month futures contract, Tata Motors witnessed a contraction of 273 units of Open Interest in the October month futures contract, HDFC Bank witnessed an addition of 1,817 units of Open Interest in the October month futures contract, Infosys witnessed a contraction of 2,072 units of Open Interest in the October month futures contract and Vedanta witnessed an addition of 904 units of Open Interest in the October month futures contract (Provisional).
