Election shattered the market sentiments. The set of number of news hovering on the Indian benchmark makes the market more volatile in today’s session. The 50-bundle stock recovers from lower levels but after that it continues its bearish momentum. Nifty breaks its major support level of 11554.40 and made a low of 11546.70. In Bank Nifty steep fall was seen it dragged almost 1.25% to 29100 levels. Indian rupee opened higher by 11 paise at 70.80 versus previous close of 70.91.The US Dollar is under pressure against its rival currencies led by weak economic data and renewed sentiments over geopolitical series, i.e, optimism in Sino-US trade deal and Brexit deal.
Open Interest Analysis
In Nifty there is highest OI seen in the 11700 strike total OI seen at 51.38 lacks followed by 11800 strike price in which total 39.50 lacs contract traded. Today highest call writing seen in 11600 almost 27.56 lacs contracts seen. In Put highest OI seen in 11500 strike price & 11600 strike price. Total OI of 35.50 lacs & 17.69 lacs contract seen in each strike price. Highest pur writing seen in 11500 strike price, total 19.47 lacs contract traded.
In Bank Nifty there is highest OI seen in the 30000 strike total OI seen at 19.46 lacks followed by 29500 strike price in which total 11.04 lacs contract traded. Today highest call writing seen in 30000 strike price almost 12.13 lacs contracts seen. In Put highest OI seen in 29000 strike price & 28500 strike price. Total OI of 13.85 lacs & 8 lacs contract seen in each strike price. Highest pur writing seen in 29000 strike price, total 6.96 lacs contract traded.
Credit Rating Agency Outlook
Fitch credit rating agency reviews GDP growth and for FY 20 they’ve maintained 5.5% growth rate. For FY 21 & FY 22 they’ve forecasted 6.2% & 6.7% growth rate respectively. In last week IMF cuts estimate of growth to 6.1% from 7% forecasted in July. World Bank also slashed growth forecast of current fiscal to 6% from 7.5% earlier in this April. The Indian economy grew slowest in last 6 years due to some major geopolitical issue regarding Britain’s exit from EU and US China trade tensions.
Almost clarity in the election result is we can see in Maharashtra BJP is likely to rule again but there is still uncertainty over Haryana constitution. Last time in 2014 in the both constitutions BJP ruled. In both the constitution BJP is leading but on Haryana constitution there is almost neck to neck competition seen.