S&P CNX Nifty – continued its southward journey for second day in row. Market made a cautious start and turned volatile, as rating agency Crisil in its latest report has said that gross non-performing assets (NPAs) of Indian banks may rise to 8-9 percent in the current financial year (FY22) but this will be much below the FY18 levels when NPAs reached a peak of 11.2 percent. Furthermore, market extended downside amid a private report that current account leading to higher imports and a rise in current account deficit, which is likely to print at 1.3 per cent of the GDP or $40 billion, up from 0.9 per cent surplus last fiscal. Traders overlooked reports that citing moderate deterioration of asset quality since the onset of the pandemic and likely pick-up in credit growth with economic recovery, credit rating agency Moody’s Investors Service in its latest report has raised the outlook for the Indian banking system to ‘stable’ from ‘negative’. Selling got intensified in last leg of trade to touch intraday low point. Finally, Nifty ended the session with the cut of over half a percent.
Most of the sectoral indices ended in red except Media and PSU Bank. The top gainers from the F&O segment were Metropolis Lab, Vodafone Idea and BHEL. On the other hand, the top losers were DIXON, Deepak Nitrite and IRCTC. In the index option segment, maximum OI continues to be seen in the 18450 -18700 calls and 17300 -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 5.35% and reached 18.31. The 50 share Nifty up by 152.15 points or 0.83% to settle at 18,266.60.
Nifty October 2021 futures closed at 18320.00 (LTP) on Wednesday, at a premium of 53.40 points over spot closing of 18266.60, while Nifty November 2021 futures ended at 18371.40 (LTP), at a premium of 104.80 points over spot closing. Nifty October futures saw a contraction of 17,168 units, taking the total outstanding open interest (OI) to 2,22,876 units. The near month derivatives contract will expire on October 28, 2021 (Provisional).
From the most active contracts, SBIN October 2021 futures traded at a premium of 1.70 points at 502.90 (LTP) compared with spot closing of 501.20. The numbers of contracts traded were 37,888 (Provisional).
Reliance Industries October 2021 futures traded at a premium of 11.45 points at 2714.95 (LTP) compared with spot closing of 2703.50. The numbers of contracts traded were 32,179 (Provisional).
IEX October 2021 futures traded at a premium of 1.80 points at 794.60 (LTP) compared with spot closing of 792.80. The numbers of contracts traded were 29,341(Provisional).
Tata power October 2021 futures traded at a premium of 0.45 points at 231.50 (LTP) compared with spot closing of 231.05. The numbers of contracts traded were 26,292 (Provisional).
ITC October 2021 futures traded at a premium of 1.25 points at 247.75 (LTP) compared with spot closing of 246.50. The numbers of contracts traded were 26,218 (Provisional).
Among, Nifty calls, 18500 SP from the October month expiry was the most active call with an addition of 12,888 units open interests. Among Nifty puts, 18000 SP from the October month expiry was the most active put with a contraction of 2,564 units open interests. The maximum OI outstanding for Calls was at 18500 SP (55,369 units) and that for Puts was at 17500 SP (52,361 units). The respective Support and Resistance levels of Nifty are: Resistance 18,413.48 -- Pivot Point 18,311.42 -- Support -- 18,164.53.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for October month contract. The top five scrips with highest PCR on Tata Motors (0.83), Bajaj Finserv (0.82), Vedanta (0.77), Bajaj Finance (0.76) and Balkrishna Industries (0.75).
Among most active underlying, Tata Power witnessed an addition of 837 units of Open Interest in the October month futures contract, Bharti Airtel witnessed an addition of 2,403 units of Open Interest in the October month futures contract, Tata Motors witnessed an addition of 528 units of Open Interest in the October month futures contract, IEX witnessed an addition of 1,636 units of Open Interest in the October month futures contract and SBIN witnessed a contraction of 63 units of Open Interest in the October month futures contract (Provisional).
