Nifty ends lower on Wednesday

Indian equity benchmark -- Nifty – ended lower on Wednesday. After a negative start, index remained lower for the most part of the trading session, impacted with Revenue Secretary Tarun Bajaj’s statement that excise duty cut on diesel and petrol prices will burden the government's coffers, but it has no plans to increase the borrowing immediately. Foreign fund outflow also weighted down on the domestic sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 2,445.25 crore on November 9, as per provisional data available on the NSE.

Index cut most of their losses in the last hours of the trade and ended near its neutral line, after credit rating agency, India Ratings and Research (Ind-Ra) in the second edition of its quarterly Commercial Paper (CP) Market Dossier ‘CP Market 2QFY22’ has said that the market has shown resilience during Q2FY22 amid the uncertain period of the second wave of COVID-19. The overall rising number of issuances in the primary CP market coupled with healthy volumes has been the trend.

Most of the sectoral indices ended in red except Auto and Pharma Index. The top gainers from the F&O segment were UPL, Bharti Airtel and Mahindra & Mahindra. On the other hand, the top losers were Hindalco, Indusind Bank and Tata Steel. 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 increased by 1.89% and reached 16.30. The 50 share Nifty down by 27.05 points or 0.15% to settle at 18,017.20.

Nifty November 2021 futures closed at 18015.00 (LTP) on Wednesday, at a discount of 2.20 points over spot closing of 18017.20, while Nifty December 2021 futures ended at 18074.30, at a premium of 57.10 points over spot closing. Nifty November futures saw an addition of 8,689 units, taking the total outstanding open interest (OI) to 2,10,312 units. The near month derivatives contract will expire November 25, 2021 (Provisional).

From the most active contracts, Tata Steel November 2021 futures traded at a discount of 39.30 points at 1303.00 (LTP) compared with spot closing of 1342.30. The numbers of contracts traded were 42,920(Provisional).

Reliance Industries November 2021 futures traded at a premium of 18.85 points at 2547.00 (LTP) compared with spot closing of 2528.15. The numbers of contracts traded were 38,639(Provisional).

Mahindra & Mahindra November 2021 futures traded at a premium of 19.95 points at 918.95 (LTP) compared with spot closing of 899.00. The numbers of contracts traded were 22,613(Provisional).

SAIL November 2021 futures traded at a discount of 6.00 points at 118.15 (LTP)compared with spot closing of 124.15. The numbers of contracts traded were 17,462(Provisional).

Adani Enterprises November 2021 futures traded at a premium of 15.60 points at 1658.00 (LTP) compared with spot closing of 1642.40. The numbers of contracts traded were 16,293(Provisional).

Among, Nifty calls, 18000 SP from the October month expiry was the most active call with an addition of 5,818 units open interests. Among Nifty puts, 17400 SP from the October month expiry was the most active put with a contraction of 5,168 units open interests. The maximum OI outstanding for Calls was at 19000 SP (45,305 units) and that for Puts was at 17500 SP (50,237 units). The respective Support and Resistance levels of Nifty are: Resistance 18,080.63 -- Pivot Point 17,997.82 -- Support -- 17,934.38.

The Nifty Put Call Ratio (PCR) finally stood at (1.06) for October month contract. The top five scrips with highest PCR on Balkrishna Industries (1.18), Dalmia Bharat (1.16), ACC (0.93), Canara Bank (0.84) and Bandhan Bank (0.80)

Among most active underlying, Reliance Industries witnessed an addition of 4,293 units of Open Interest in the October month futures contract, Bank Of Baroda witnessed an addition of 1,543 units of Open Interest in the October month futures contract, Tata Steel witnessed an addition of 9,094 units of Open Interest in the October month futures contract, Bharti Airtel witnessed an addition of 401 units of Open Interest in the October month futures contract and Tata Motors witnessed an addition of 582 units of Open Interest in the October month futures contract (Provisional).