S&P CNX – Nifty finished Wednesday’s session in negative territory. Market made slightly positive start, as Finance Minister Nirmala Sitharaman said that banks have sanctioned loans worth Rs 11,168 crore to about 2 lakh borrowers under the credit outreach programme. Further, market maintained its gains above the neutral line, as survey by the National Council of Applied Economic Research (NCAER) showed that as the second wave of Covid-19 eased off, business sentiment in the country hit an over two-year high in the September quarter (Q2) of the current financial year (FY22). However, in last leg of trade, index failed to hold its gains and slipped into red zone, as Chairman of the 15th Finance Commission -- N K Singh has said the International Monetary Fund’s (IMF's) decision to revise India's potential growth forecast downwards to 6 per cent citing the coronavirus pandemic is a ‘gross under estimation’ and observed that calculations of growth potential are always problematic. He mentioned ‘The issue of our medium term growth potential projected by the IMF last week by recaliberating it from 6.25 per cent to 6 per cent, in my view, is gross under estimation.’
Traders were seen piling positions in FMCG, IT and Pharma sector while selling was witnessed in Metal, Bank and Auto sector stocks. The top gainers from the F&O segment were MCDOWELL-N, Godrej Consumer Products and Asian Paints. On the other hand, the top losers were ZEEL, Bajaj Finance and Axis Bank. In the index option segment, maximum OI continues to be seen in the 18250 -18400 calls and 17900 -18100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 0.44% and reached 16.83. The 50 share Nifty down by 57.45 points or 0.31% to settle at 18,210.95.
Nifty October 2021 futures closed at 18196.00 (LTP) on Wednesday, at a discount of 14.95 points over spot closing of 18210.95 , while Nifty November 2021 futures ended at 18230.70 (LTP) , at a premium of 19.75 points over spot closing. Nifty October futures saw an addition of 17,866 units, taking the total outstanding open interest (OI) to 1,61,064 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 2.75 points at 2625.05 (LTP) compared with spot closing of 2622.30. The numbers of contracts traded were 42,116 (Provisional).
Bajaj Finance October 2021 futures traded at a discount of 7.50 points at 7470.50 (LTP) compared with spot closing of 7478.00. The numbers of contracts traded were 30,723 (Provisional).
SBIN October 2021 futures traded at a premium of 0.10 points at 518.10 (LTP) compared with spot closing of 518.00. The numbers of contracts traded were 30,315 (Provisional).
Axis Bank October 2021 futures traded at a premium of 0.75 points at 788.10 (LTP) compared with spot closing of 787.35. The numbers of contracts traded were 28,552 (Provisional).
HDFC Bank October 2021 futures traded at a premium of 1.40 points at 1644.10 (LTP) compared with spot closing of 1642.70. The numbers of contracts traded were 26,494 (Provisional).
Among, Nifty calls, 18300 SP from the October month expiry was the most active call with a addition of 39,227 units open interests. Among Nifty puts, 18200 SP from the October month expiry was the most active put with an addition of 2,610 units open interests. The maximum OI outstanding for Calls was at 18300 SP (1,43,244 units) and that for Puts was at 18000 SP (87,128 units). The respective Support and Resistance levels of Nifty are: Resistance 18,312.70 -- Pivot Point 18,240.30 -- Support -- 18,138.55.
The Nifty Put Call Ratio (PCR) finally stood at (0.68) for October month contract. The top five scrips with highest PCR on Bank of Baroda (1.09), SBIN (1.02), Kotak Mahindra Bank (0.91), Balkrishna Industries (0.87) and Dalmia Bharat (0.83).
Among most active underlying, Bajaj Finance witnessed contraction of 1,033 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 4,954units of Open Interest in the October month futures contract, Axis Bank witnessed an addition of 4,333 units of Open Interest in the October month futures contract, ICICI Bank witnessed an addition of 3,966 units of Open Interest in the October month futures contract and Tata Motors witnessed an addition of 1,085 units of Open Interest in the October month futures contract (Provisional).
