Reversing previous session strong gain, NSE gauge -- Nifty50 traded with negative bias throughout the day and ended the day's trade with losses of over half a percent, led by a sharp drop in banking stocks. Market made a negative start with the a private report that Indian retail inflation probably reached a 12-month high in September, but still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's target. Traders remain concerned, as private report highlighted that a workforce analysis of listed companies reveals that the job loss in public sector was one of the worst in the recent times. In contrast to an increase of 9.2 per cent headcount in private sector, the public sector saw a decline of 2.6 per cent in FY19. Besides, a deprecating rupee against the dollar, due to fresh demand for the American currency from banks and importers, dampened the sentiment. In second half of trade market added some more losses as, Moody’s Investors Service cut India’s gross domestic product (GDP) growth forecast for 2019-20 to 5.8% from the earlier estimate of 6.2%. It attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.
Most of the NSE sectoral indices ended in red. The top gainers from the F&O segment Vodafone Idea, Bharti Airtel and Berger Paints. On the other hand, the top losers were Indiabulls Housing Finance, National Aluminium Company and RBL Bank. In the index option segment, maximum OI continues to be seen in the 11200 - 11,700 calls and 10,700 - 11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.42% and reached 17.22.The 50 share Nifty was down by 78.75 points or 0.70% to settle at 11,234.55.
Nifty October 2019 futures closed at 11258.40 (LTP) on Thursday, at a premium of 23.85 points over spot closing of 11234.55, while Nifty November 2019 futures ended at 11306.10 (LTP), at a premium of 71.55 points over spot closing (Provisional). Nifty October futures saw an addition of 0.29 million (mn) units, taking the total outstanding open interest (OI) to 14.84 mn units. The near month derivatives contract will expire on October 31, 2019 (Provisional)
From the most active contracts, Indiabulls Housing Finance October 2019 futures traded at a discount of 3.85 points at 189.75 (LTP) compared with spot closing of 193.60. The numbers of contracts traded were 64,227 (Provisional).
IndusInd Bank October 2019 futures traded at a premium of 4.15 points at 1233.70 (LTP) compared with spot closing of 1229.55. The numbers of contracts traded were 59,763 (Provisional).
Yes Bank October 2019 futures traded at a premium of 0.15 points at 41.05 (LTP) compared with spot closing of 40.90. The numbers of contracts traded were 48,943 (Provisional).
Reliance Industries October 2019 futures traded at a premium of 2.55 points at 1362.70 (LTP) compared with spot closing of 1360.15. The numbers of contracts traded were 38,253 (Provisional).
Tata Consultancy Services October 2019 futures traded at a discount of 8.80 points at 1994.00 (LTP) compared with spot closing of 2002.80. The numbers of contracts traded were 24,536 (Provisional).
Among, Nifty calls, 11,300 SP from the October month expiry was the most active call with an addition of 0.37 million open interests. Among Nifty puts, 11,200 from the October month expiry was the most active put with a contraction of 0.004 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.49 mn) and that for Puts was at 11,000 SP (2.60 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,282.42 -- Pivot Point 11,245.48 -- Support -- 11,197.62.
The Nifty Put Call Ratio (PCR) finally stood at 0.93 for October month contract. The top five scrips with highest PCR on Bosch (8.60), Cummins India (2.02), Torrent Pharmaceuticals (1.39), Equitas Holdings (1.19) and Shriram Transport Finance Company (1.08).
Among most active underlying, Reliance Industries witnessed an addition of 1.03 million units of Open Interest in the October month futures contract, followed by IndusInd Bank witnessing an addition of 1.70 million units of Open Interest in the October month contract, State Bank of India witnessed an addition of 3.70 million units of Open Interest in the October month contract, Tata Consultancy Services witnessed an addition of 0.82 million units of Open Interest in the October month contract and Bharti Airtel witnessed an addition of 3.75 million units of Open Interest in the October month future contract (Provisional).