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Nifty ends higher ahead of November F&O expiry

27 Nov 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in a positive terrain ahead of November F&O expiry, supported by a jump in Adani group shares after the conglomerate issued a clarification on the bribery charges by US authorities. After making a positive start, soon index turned volatile, as traders remained cautious ahead of the release of a key U.S. inflation measure, the Thanksgiving holiday in the U.S. and uncertainty over Trump's tariff plans. Some cautiousness came in with a report that after running surplus liquidity of about Rs 1.4 lakh crore for over two months, the banking system saw a decline in cash, prompting the Reserve Bank of India to inject Rs 6,956 crore on November 25.

However, index witnessed gaining momentum in afternoon session to close higher, as some support came with the Finance Ministry’s latest monthly economic review stating that the upcoming administration in US after the win of Donald Trump in the latest elections is set to play an important role in trade dynamics globally. The report noted that global economic factors, including shifts in interest rates, earnings growth, and geopolitical developments, will significantly influence trade and capital flows. Sentiments were positive, amid reports that India's Goods and Services Tax (GST) collection for November 2024 is expected to surpass Rs 1.87 lakh crore, recorded in October, making it the second-highest monthly collection ever. The anticipated growth in GST revenue is attributed to robust domestic sales during the festive season.

Traders were seen piling up positions in Media, Metal and Oil & Gas stocks, while selling was witnessed in Pharma, Healthcare, and Realty. The top gainers from the F&O segment were Adani Enterprises, Vodafone Idea and Adani Ports and Special Economic Zone. On the other hand, the top losers were Godrej Properties, IPCA Laboratories and Granules India. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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