Nifty ends lower on Wednesday

S&P CNX -- Nifty ended the Wednesday’s session below its crucial 17850 mark. Market made positive start, as Niti Aayog Vice-Chairman Rajiv Kumar said Indian economy is expected to grow by 10 per cent or more in the current fiscal, and 8 per cent plus in the next fiscal year. Further, market maintained its gains with a private survey showed India's dominant services industry expanded at the fastest pace in more than a decade on improved domestic demand despite high inflation, driving firms to take on staff at a rate not seen since the onset of the pandemic. The IHS Markit Services Purchasing Managers' Index accelerated to 58.4 last month from 55.2 in September, above the 50-mark separating growth from contraction for a third straight month. However, in afternoon trade market slipped into red. Traders failed to support with a private report stating that hiring activity expanded by 43 per cent year-on-year in October driven by strong demand for technology professionals. According to the report, with 2,523 job listings in October 2021, there was a 43 per cent year-on-year (Y-O-Y) growth. Finally, Nifty ended the day’s trade in red.

Most of the sectoral indices ended in red except Realty and Metal. The top gainers from the F&O segment were Oberoi Realty, Trent and L&T. On the other hand, the top losers were Bandhan Bank, Chambal Fertilisers and Escorts. In the index option segment, maximum OI continues to be seen in the 18900 -19200 calls and 17200 -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 5.49% and reached 16.13. The 50 share Nifty down by 59.75 points or 0.33% to settle at 17,829.20.

Nifty November 2021 futures closed at 17862.95 (LTP) on Wednesday, at a premium of 33.75 points over spot closing of 17829.20, while Nifty December 2021 futures ended at 17924.35, at a premium of 95.15 points over spot closing. Nifty November futures saw an addition of 5,281 units, taking the total outstanding open interest (Contracts) to 2,09,971 units. The near month derivatives contract will expire on November 25, 2021 (Provisional).

From the most active contracts, SBIN November 2021 futures traded at a premium of 1.90 points at 532.80 (LTP) compared with spot closing of 530.90. The numbers of contracts traded were 1,09,153 (Provisional).

Reliance Industries November 2021 futures traded at a premium of 8.05 points at 2491.05 (LTP) compared with spot closing of 2483.00. The numbers of contracts traded were 37,649 (Provisional).

Tata Steel November 2021 futures traded at a premium of 2.35 points at 1328.35 (LTP) compared with spot closing of 1326.00. The numbers of contracts traded were 21,453 (Provisional).

Bharti Airtel November 2021 futures traded at a premium of 3.10 points at 700.60 (LTP) compared with spot closing of 697.50. The numbers of contracts traded were 21,418 (Provisional).

L&T November 2021 futures traded at a premium of 6.25 points at 1899.00 (LTP) compared with spot closing of 1892.75. The numbers of contracts traded were 18,181 (Provisional).

Among, Nifty calls, 18000 SP from the October month expiry was the most active call with a contraction of 3,164 units open interests. Among Nifty puts, 17800 SP from the October month expiry was the most active put with an addition of 3,026 units open interests. The maximum OI outstanding for Calls was at 19000 SP (45,375 units) and that for Puts was at 17500 SP (49,185 units). The respective Support and Resistance levels of Nifty are: Resistance 17,959.32 -- Pivot Point 17,858.63 -- Support -- 17,728.52.

The Nifty Put Call Ratio (PCR) finally stood at (1.14) for October month contract. The top five scrips with highest PCR on Dalmia Bharat (1.63), Balkrishna Industries (1.44), Whirlpool (1.02), Bandhan Bank (0.80) and Canara Bank (0.76).

Among most active underlying, SBIN witnessed an addition of 7,168 units of Open Interest in the October month futures contract, Bharti Airtel witnessed an addition of 4,146 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 6,606 units of Open Interest in the October month futures contract, L&T witnessed an addition of 1,716 units of Open Interest in the October month futures contract and ICICI Bank witnessed an addition of 3,085 units of Open Interest in the October month futures contract (Provisional).