Nifty erases gains to end lower on Wednesday

Indian equity benchmark -- Nifty – ended Wednesday’s trading session in red, as traders were cautious with HSBC Composite Purchasing Managers' Index (PMI) Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash data due on tomorrow. After making a cautious start, soon index added some gains to trade in green, as traders took some support with the Reserve Bank of India deputy governor Michael Debabrata Patra’s statement that India’s GDP growth is projected at 7.2 per cent in 2024-25, around 7 per cent in the next fiscal, and after that, there is a strong likelihood that the growth will revert to the 8 per cent trend. Some support came as Minister of Petroleum and Natural Gas of India Hardeep Singh Puri hopes that global oil prices will come down despite geopolitical tensions as more supplies are coming into the market. 

Index remained higher in afternoon session, as sentiments remained positive after Finance Minister Nirmala Sitharaman emphasised the significant strides India has made in reducing inequality over the last decade. The minister noted that India’s policies have been pivotal in bridging inequality across various segments of society, with a comprehensive approach to financial inclusion, poverty alleviation, and infrastructure development.  In last leg of trade, index witnessed selling pressure and turned negative. 

Traders were seen piling up positions in IT, PSU Bank and Media stocks, while selling was witnessed in Pharma, Healthcare and Auto. The top gainers from the F&O segment were Coforge, Persistent Systems and Max Financial Services. On the other hand, the top losers ABB India, Mahindra & Mahindra Financial Services and Siemens. In the index option segment, maximum OI continues to be seen in the 26900 - 27100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 1.31% and reached 14.59. The 50 share Nifty down by 36.60 point or 0.15% to settle at 24,435.50.

Nifty October 2024 futures closed at 24487.90 (LTP) on Wednesday, at a premium of 52.40 points over spot closing of 24435.50, while Nifty November 2024 futures ended at 24616.10 (LTP), at a premium of 180.60 points over spot closing. Nifty October futures saw an addition of 8,068 units, taking the total outstanding open interest (Contracts) to 86,420 units. The near month derivatives contract will expire on October 31, 2024. (Provisional) 

From the most active contracts, HDFC Bank October 2024 futures traded at a premium of 1.20 points at 1737.40 (LTP) compared with spot closing of 1736.20. The numbers of contracts traded were 48,253. (Provisional) 

Bajaj Finance October 2024 futures traded at a premium of 3.70 points at 7008.55 (LTP) compared with spot closing of 7004.85. The numbers of contracts traded were 46,576. (Provisional) 

Reliance Industries October 2024 futures traded at a premium of 7.60 points at 2689.95 (LTP) compared with spot closing of 2682.35. The numbers of contracts traded were 42,823. (Provisional) 

State Bank of India October 2024 futures traded at a premium of 1.80 points at 787.00 (LTP) compared with spot closing of 785.20. The numbers of contracts traded were 36,701. (Provisional) 

ICICI Bank October 2024 futures traded at a premium of 1.50 points at 1255.00 (LTP) compared with spot closing of 1253.50. The numbers of contracts traded were 36,078. (Provisional) 

Among, Nifty calls, 25000 SP from the October month expiry was the most active call with an additional of 19,659 units open interests. Among Nifty puts, 24000 SP from the October month expiry was the most active put with an additional of 16,768 units open interests. The maximum OI outstanding for Calls was at 27000 SP (2,75,914 units) and that for Puts was at 24000 SP (1,83,138 units). The respective Support and Resistance levels of Nifty are: Resistance 24,567.13 -- Pivot Point 24,472.62 -- Support 24,340.98.

The Nifty Put Call Ratio (PCR) finally stood at (0.92) for October month contract. The top five scrips with highest PCR on Coforge (1.31), Max Financial Services (1.21), Persistent Systems (1.07), Petronet LNG (1.06) and Coromandel International (0.97).

Among most active underlying, HDFC Bank witnessed an additional of 1,869 units of Open Interest in the October month future, Bajaj Finance witnessed an additional of 4,708 units of Open Interest in the October month future, Coforge witnessed an additional of 3,029 units of Open Interest in the October month futures, ICICI Bank witnessed an additional of 304 units of Open Interest in the October month futures and TVS Motor Company witnessed an additional of 2,109 units of Open Interest in the October month future. (Provisional)