Barometers scale fresh record high

Key benchmark indices scaled fresh record high in early afternoon trade amid wide spread buying support. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 93.68 points or 0.23% at 41,114.29. The Nifty 50 index was up 34.9 points or 0.29% at 12,135.60.

The broader market outperformed the benchmark index. The S&P BSE Mid-Cap index was up 0.67%. The S&P BSE Small-Cap index was up 0.34%.

The market breadth was positive. On the BSE, 1,133 shares rose and 1031 shares fell. A total of 162 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined.

Trading was volatile as traders roll over positions in the F&O segment from the near month November 2019 series to December 2019 series. The November 2019 F&O contracts expire today, 28 November 2019.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 3.81% to 14.06. The Nifty November 2019 futures were trading at 12,135.90, a premium of 1.8 points compared with the spot at 12,134.10.

On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 55.07 lakh contracts at the 12,200 strike price. Massive call writing was witnessed at 12,200 strike price, which added 30.21 lakh contracts. Maximum call unwinding was seen at the 12,500 strike price, which shed 8.82 lakh contracts.

Maximum put OI of 65 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,100 strike price, which added 25.17 lakh contracts.

The option chain indicates that Nifty November contracts may expire between 12,000 and 12,200 today, 28 November 2019.

Buzzing Index:

The Nifty IT index rose 0.64% to 15,118.35, extending gains for the second session. TCS (up 1.59%), Hexaware Technologies (up 1.31%), Mphasis (up 1.08%), NIIT Tech (up 0.97%), HCL Technologies (up 0.65%), Just Dial (up 0.52%), Tech Mahindra (up 0.36%), Infosys (up 0.35%) and Persistent Systems (up 0.1%) were top gainers in IT segment.

Weakness in rupee boosted IT stocks. The partially convertible rupee was hovering at 71.54, compared with its close of 71.350 during the previous trading session.

Stocks in Spotlight:

Granules India rose 2.29% to Rs 131.60 after the media reported that private-equity companies are engaged in early-stage discussions to acquire the company. Promoters held 42.90% stake in the company as on 30 September 2019.

Cipla rose 0.16% to Rs 468.5. The drug major's wholly owned subsidiary Cipla (EU), holding 60% stake in Cipla Pharma Lanka, Sri Lanka, has signed an agreement with CitiHealth Imports to acquire the remaining 40% stake in Cipla Pharma Lanka. Post-acquisition, Cipla Pharma Lanka will become a wholly owned subsidiary.

BSE rose 1.37% to Rs 504 while CDSL lost 1.57% to Rs 219.80. BSE said that divestment committee of the board of the company has accorded approval for divestment of 41.80 lakh equity shares, constituting 4% of stake in Central Depository Services (India) through offer for sale process through stock exchange mechanism. The offer for non-retail investors will open on 28 November 2019 date and for retail investors will open on 29 November 2019. The floor price for the offer is Rs 205 per equity share.

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