LIV: Nifty ends flat with negative bias; holds 8950 level
The local benchmark, Nifty consolidated and ended the choppy day of trade on a flat note with negative bias as investors stayed wary ahead of the results from elections in Bihar, which Prime Minister Narendra Modi's party needs to win to improve the parliamentary strength it needs to push through reforms. Exit polls, telecast on Thursday, failed to throw up a clear winner in Bihar. Sentiment remained subdued on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 991.87 crore on November 5, 2015. On the global front, Asian markets ended mostly in red on Friday, as investors remained cautious stand ahead of the US jobs report. However, the Chinese and Japanese shares continued to rally on recent remarks by President Xi Jinping and further weakness in the yen respectively. Meanwhile, European stock markets declined in early trade, with luxury goods stocks among the worst performers after Richemont warned of tough times ahead.
Back home, after getting cautious start, Indian benchmark Nifty showed some strength in early trades, but the sentiments turned pessimistic in late morning trades and index start drifting lower. Market, for rest of the session, see-saw around the neutral line as investors remained sideways in the absence of any significant trigger at domestic front. The lack of clarity of Bihar election outcome is one of the important factors that have been weighing on market. Besides, US jobs data which is due to released today is keenly awaited by the market participants as it is likely to provide further cues pertaining to the timing of rate hike by the Federal Reserve. Sentiment remained sluggish with RBI Governor Raghuram Rajan’s statement that the central bank is comfortable with the current level of policy rates till more room builds up, even as the government expressed hope for further cuts. However, losses remained capped with the Prime Minister Narendra Modi’s statement that the economy had performed better on all parameters, including inflation and foreign investment in the past 17 months and laid stressed on effecting inclusive reforms to improve people’s lives, rather than only grabbing headlines.
The top gainers from the F&O segment were Motherson Sumi Systems, Bank of Baroda and Hexaware Technologies. On the other hand, the top losers were Dr. Reddy's Laboratories, Rural Electrification Corporation and Power Finance Corporation. In the index options segment, maximum OI was being seen in the 8200-8500 calls and 7800-8100 puts. In today's session, while the traders preferred to exit 8100 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 8700 Call, while 8200 call witnessed considerable OI addition.
- See more at: http://money.livemint.com/news/market/equity/f-o-corner/nifty-ends-flat-with-negative-bias-holds-8950-level-409105.aspx#sthash.AfRIaTw9.dpufThe India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.93% and reached 19.42. The 50-share CNX Nifty was down by 1.15 points or 0.01% to settle at 7,954.3. Nifty November 2015 futures closed at 7977.40 on Friday at a premium of 23.10 points over spot closing of 7,954.30, while Nifty December 2015 futures ended at 8022.05 at a premium of 67.75 points over spot closing. Nifty November futures saw contraction of 0.40 million (mn) units, taking the total outstanding open interest (OI) to 18.67 million (mn) units. The near month derivatives contract will expire on November 26, 2015.
From the most active contracts, SBI November 2015 futures traded at premium of 0.70 points at 244.60 compared with spot closing of 243.90. The number of contracts traded were 47,657.
ICICI Bank November 2015 futures traded at a premium of 1.75 points at 268.60 compared with spot closing of 266.85. The number of contracts traded were 14,424.
IDFC November 2015 futures traded at a premium of 0.15 points at 55.70 compared with spot closing of 55.55. The number of contracts traded were 13,011.
Bank of Baroda November 2015 futures traded at a discount of 1.50 points at 167.15 compared with spot closing of 168.65. The number of contracts traded were 27,240.
Tata Steel November 2015 futures traded at a premium of 1.15 points at 220.45 compared with spot closing of 219.20. The number of contracts traded were 14,957. Among Nifty calls, 8200 SP from the November month expiry was the most active call with an addition of 1.73 million open interests. Among Nifty puts, 7900 SP from the November month expiry was the most active put with a contraction of 0.05 million open interests. The maximum OI outstanding for Calls was at 8200 SP (5.75 mn) and that for Puts was at 7800 SP (4.59 mn). The respective Support and Resistance levels of Nifty are: Resistance 7995.92 --- Pivot Point 7961.03 --- Support --- 7919.42.
The Nifty Put Call Ratio (PCR) finally stood at 0.85 for November month contract. The top five scrips with highest PCR on OI were STAR (1.88), Shriram Transport Finance (1.43), Bank of Baroda (1.30), Tata Chemicals (1.27) and Indian Overseas Bank (1.17).
Among most active underlying, State Bank of India witnessed a contraction of 0.31 million of Open Interest in the November month futures contract, followed by Dr. Reddy's Laboratories witnessing an addition of 0.59 million of Open Interest in the November month contract; Bank of Baroda witnessed an addition of 0.88 million of Open Interest in the November month contract, Tata Motors witnessed a contraction of 1.04 million of Open Interest in the November month contract and Tata Steel witnessed an addition of 1.32 million units of Open Interest in the November month's future contract.
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