Nifty ends higher for second straight day

Nifty ended higher for second straight day. India VIX was down by 1.30%. Market made positive start, as traders took support with IMF’s statement that recent tightening actions by many central banks around the world will help to prevent high inflation from becoming entrenched. Further, index extended its gains amid a private report stating that the Department of Commerce is considering the formation of dedicated units called 'subject matter divisions to build expertise in industries like services, agriculture, medicines, trade remedies, and digital trade as part of a more aggressive approach to free trade agreements. India wants to be able to negotiate agreements with other nations at the World Trade Organization from a position of strength.

Traders took a note of Reserve Bank of India’s (RBI) latest report stating that India Inc's foreign commercial borrowings in August this year rose by nearly 4.6 per cent to USD 2.98 billion. In August 2021, the Indian businesses borrowed USD 2.85 billion in the form of external commercial borrowings. Market continued to trade fine fettle but in last leg of trade, pared most of their gains, as India’s services sector growth declined in the month of September, as both new business inflows and output rose at the slowest rates since March, amid inflationary pressures and competitive conditions, which in turn dampened job creation. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 57.2 in August to 54.3 in September.

Most of the sectoral indices ended in green except FMCG, Pharma and Financial Services. The top gainers from the F&O segment were Bharat Forge, Persistent Systems and India Cements. On the other hand, the top losers were Bharti Airtel, Lupin and Godrej Consumer Products. In the index option segment, maximum OI continues to be seen in the 17900 -18200 calls and 15900 -16150 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.30% and reached 19.32. The 50 share Nifty up by 57.50 points or 0.33% to settle at 17,331.80.

Nifty October 2022 futures closed at 17313.00 (LTP) on Thursday, at a discount of 18.80 points over spot closing of 17331.80, while Nifty November 2022 futures ended at 17360.25 (LTP), at a premium of 28.45 points over spot closing. Nifty October futures saw an addition of 23,988 units, taking the total open interest (Contracts) to 2,56,147 units. The near month derivatives contract will expire on October 27, 2022. (Provisional)

From the most active contracts, Infosys October 2022 futures traded at a discount of 15.45 points at 1438.55 (LTP) compared with spot closing of 1454.00. The numbers of contracts traded were 30,487. (Provisional)

Reliance Industries October 2022 futures traded at a premium of 2.75 points at 2425.25 (LTP) compared with spot closing of 2422.50. The numbers of contracts traded were 29,431. (Provisional)

ZEEL October 2022 futures traded at a premium of 0.55 points at 281.05 (LTP) compared with spot closing of 280.50. The numbers of contracts traded were 21,952. (Provisional)

HDFC Bank October 2022 futures traded at a premium of 3.95 points at 1439.95 (LTP) compared with spot closing of 1436.00. The numbers of contracts traded were 17,867. (Provisional)

TCS October 2022 futures traded at a premium of 1.00 points at 3094.00 (LTP) compared with spot closing of 3093.00. The numbers of contracts traded were 16,888. (Provisional)

Among, Nifty calls, 18000 SP from the October month expiry was the most active call with a contraction of 376 units open interests. Among Nifty puts, 17000 SP from the October month expiry was the most active put with a contraction of 6,555 units open interests. The maximum OI outstanding for Calls was at 18000 SP (59,601 units) and that for Puts was at 16000 SP (56,929 units). The respective Support and Resistance levels of Nifty are: Resistance 17,401.85 -- Pivot Point 17,358.75 -- Support -- 17,288.70.

The Nifty Put Call Ratio (PCR) finally stood at (1.24) for October month contract. The top five scrips with highest PCR on Grasim Industries (1.05), JSW Steel (1.00), Coal India (0.94), RBL Bank (0.91) and IDFC (0.88).

Among most active underlying, Adani Enterprises witnessed an addition of 60 units of Open Interest in the October month futures, ZEEL witnessed an addition of 131 units of Open Interest in the October month futures, Reliance Industries witnessed a contraction of 360 units of Open Interest in the October month futures, ICICI Bank witnessed an addition of 1,813 units of Open Interest in the October month futures and Bajaj Finance witnessed an addition of 3,183 units of Open Interest in the October month futures (Provisional).