Crude oil gained for a third day after an industry report showed U.S.

International News:

Crude oil gained for a third day after an industry report showed U.S. stockpiles declined after a hurricane in the Gulf of Mexico. Oil rose as much as 0.9 percent to $79.85 a barrel on the New York Mercantile Exchange after the American Petroleum Institute said yesterday crude inventories fell by 4.37 million barrels last week to 333.1 million. The Obama administration announced a government-wide task force to combat financial fraud after the U.S. recession led to an increase in economic crimes. The Fed reported that the Industrial production edged up 0.1 percent last month. It was the poorest showing since output fell 0.4 percent in June. Since then, industrial output had posted strong gains, helped by a rebound in auto production. But auto output slipped 1.7 percent last month. That helped drag down total factory output, the biggest portion of industrial production. Goldman Sachs Group Inc., said that it was teaming up with Warren Buffett to provide assistance to 10,000 small businesses in the U.S. The $500 million charitable effort coincides with one of the Obama administration’s top economic priorities: spurring hiring at smaller companies.

Corporate news:

L N Mittal has pulled out of a project to develop an oil block in Kazakhistan with joint venture partner ONGC Videsh. L&T is set to consolidate its integrated engineering services business into a separate entity. CMD of RIL indicated in the AGM that an overseas acquisition might be on cards. Infosys Technologies COO has said that margin expansion is unlikely this year. US-based fuel control service provider Gilbarco said it will acquire the petroleum dispensing pump(PDP) business of L&T. SAIL will spend a sum of Rs.60, 000 crore on capex over the next five years.
Ruchi Soya plans to merge a group firm, Mac Oil. Hindalco Industries has received approval from its shareholders for raising funds up to Rs.2900 crore. J P Associates plans to mop up Rs.1500 crore from the primary market by IPO of Jaypee Infratech.

Derivative View:

Nifty Nov contract ends the day almost unchanged paring OI by 3.2%. Nifty Open Int PCR at 1.535 compared to 1.580 yesterday on back of addition of 1.49 Lakh Nifty puts and 14.66 Lakh calls. Nifty VIX at 26.78 from 27.95 yesterday. Highest OI in Nifty put at 4800 Nov strike and calls is at 5100 Nov strike. Nifty call option addition seen in 4900 Dec, 5100 & 5000 Nov strike. 4800 and 4900 Nov calls saw paring of OI.
5100 Nov strike and 4800 and 5000 Dec strike saw addition during the day. Put option paring was seen in 4600 & 4900 Nov Strike. FII side saw long liquidation in Nifty futures and short build up in stock futures and Nifty options was bought. Long build up over the day seen in CROMPGREAV, NAGARFERT, DISHTV, ABIRLANUVO & FSL etc. Long liquidation seen in RELCAPITAL, SINTEX, ABAN & TCS etc. Short build up seen in PATNI, HDIL, UNIPHOS, DLF, TV-18 & PTC etc.