Nifty ends near low point on Wednesday

Nifty ended the session near intraday low point on Wednesday. Market made negative start, as Fitch Ratings kept India's sovereign rating unchanged at 'BBB-' with a negative outlook, and said that the rating balances a still-strong medium-term growth outlook and external resilience from solid foreign-reserve buffers against high public debt, a weak financial sector and some lagging structural issues. It said the country’s rapid economic recovery from the Covid-19 pandemic and easing financial sector pressures are narrowing risks to the medium-term growth outlook. Further, index turned volatile, as foreign portfolio investors (FPIs) sold shares worth Rs 560.67 crore, in the Indian equity market on 16 November, provisional data showed.

Traders overlooked minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal’s statement that as per a recent CII-Ernst & Young report, India will be the next investment global hotspot. Besides, Goyal said India has all the right ingredients for the Multi-National Corporations (MNCs) and can help MNCs become more competitive at global level. In last leg of trade, market added more losses to touch intraday low point. Finally, nifty finished the session below 17900 mark with the cut of above half a percent.

Most of the sectoral indices ended in red except Media, Auto and IT. The top gainers from the F&O segment were Apollo Hospitals, Birlasoft and LTTS. On the other hand, the top losers were Petronet LNG, Godrej Properties and Chambal Fertilisers & Chemicals. In the index option segment, maximum OI continues to be seen in the 17950 -18300 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 1.41% and reached 14.98. The 50 share Nifty down by 100.55 points or 0.56% to settle at 17,898.65.

Nifty November 2021 futures closed at 17897.00 (LTP) on Wednesday, at a discount of 1.65 points over spot closing of 17898.65, while Nifty December 2021 futures ended at 17960.00 (LTP) , at a premium of 61.35 points over spot closing. Nifty November futures saw an addition of 1,428 units, taking the total open interest (OI) to 2,02,139 units. The near month derivatives contract will expire on November 25, 2021(Provisional).

From the most active contracts, Apollo Hospitals November 2021 futures traded at a premium of 11.55 points at 5731.55 (LTP) compared with spot closing of 5720.00. The numbers of contracts traded were 38,646 (Provisional).

ITC November 2021 futures traded at a premium of 0.70 points at 240.00 (LTP) compared with spot closing of 239.30. The numbers of contracts traded were 31,064 (Provisional).

Reliance Industries November 2021 futures traded at a premium of 2.05 points at 2464.85 (LTP) compared with spot closing of 2462.80. The numbers of contracts traded were 28,148 (Provisional).

Maruti Suzuki November 2021 futures traded at a premium of 3.10 points at 8243.10 (LTP) compared with spot closing of 8240.00. The numbers of contracts traded were 26,695 (Provisional).

Tata Steel November 2021 futures traded at a premium of 1.40 points at 1218.90 (LTP) compared with spot closing of 1217.50. The numbers of contracts traded were 25,023 (Provisional).

Among, Nifty calls, 18100 SP from the October month expiry was the most active call with an addition of 13,588 units open interests. Among Nifty puts, 17900 SP from the October month expiry was the most active put with an addition of 1,888 units open interests. The maximum OI outstanding for Calls was at 18000 SP (62,316 units) and that for Puts was at 17500 SP (50,853 units). The respective Support and Resistance levels of Nifty are: Resistance 17,987.78 -- Pivot Point 17,933.52 -- Support -- 17,844.38.

The Nifty Put Call Ratio (PCR) finally stood at (0.90) for October month contract. The top five scrips with highest PCR on Apollo Hospital (1.09), Dalmia Bharat (1.08), ACC (0.90), Indigo (0.90) and Maruti Suzuki (0.86).

Among most active underlying, Tata Motors witnessed an addition of 172 units of Open Interest in the October month futures contract, Apollo Hospitals witnessed an addition of 4,400 units of Open Interest in the October month futures contract, ITC witnessed an addition of 1,155 units of Open Interest in the October month futures contract, Maruti Suzuki witnessed an addition of 1,803 units of Open Interest in the October month futures contract and Reliance Industries witnessed an addition of 2,736 units of Open Interest in the October month futures contract (Provisional).