Nifty trades jubilantly; surpasses 11,800 mark

Bulls held its control throughout the day on Thursday with Nifty finishing the day’s trade above its crucial 11825 level. Market made gap up opening, as traders took support with the Union health ministry’s statement that the number of people recovered from Covid-19 has exceeded those with active infection by more than 48 lakh as the recovery rate surpassed 85% on Wednesday. Index continued its firm trade with Union Minister VK Singh’s statement that highways and infrastructure can spur the country’s economic growth. He said the workforce is back at pre-COVID levels, which is a healthy sign and added that good quality road network leads to ease of doing business, goods transportation and economic growth.

Sentiments remained upbeat after chairman of the Standing Committee on Statistics, ministry of statistics and programme implementation Pranob Sen said that the government should continue with the stimulus to revive the economy for three years and it should not be one off.  However, market trimmed some of its gains in late afternoon session, after World Bank said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is much worse than ever seen before. 

Most of the NSE sectoral indices ended in green except FMGC and Media. The top gainers from the F&O segment were Wipro, Mindtree and Cadila Healthcare. On the other hand, the top losers were Vedanta, Adani Enterprises and Tata Consumer Products. In the index option segment, maximum OI continues to be seen in the 11,000 - 12,500 calls and 10,000 - 10,900 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.59% and reached 20.38. The 50 share Nifty up by 95.75 points or 0.82% to settle at 11,834.60.

Nifty October 2020 futures closed at 11827.00 (LTP) on Thursday, at a discount of 7.60 points over spot closing of 11834.60, while Nifty November 2020 futures ended at 11850.00(LTP) , at a premium of 15.40 points over spot closing.  Nifty October futures saw an addition of 11,794 units, taking the total open interest (Contracts) to 1,50,354. The near month derivatives contract will expire on October 29, 2020 (Provisional).

From the most active contracts, TCS October 2020 futures traded at a discount of 2.45 points at 2816.00 (LTP) compared with spot closing of 2818.45. The numbers of contracts traded were 63,685 (Provisional).

Wipro October 2020 futures traded at a premium of 0.70 points at 360.60 (LTP) compared with spot closing of 359.90. The numbers of contracts traded were 34,284 (Provisional).

Reliance Industries October 2020 futures traded at a premium of 5.25 points at 2246.75 (LTP) compared with spot closing of 2241.50. The numbers of contracts traded were 27,548 (Provisional).

Infosys October 2020 futures traded at a discount of 11.50 points at 1083.00 (LTP) compared with spot closing of 1094.50. The numbers of contracts traded were 27,157 (Provisional).

HDFC Bank October 2020 futures traded at a discount of 4.35 points at 1185.55 (LTP) compared with spot closing of 1189.90. The numbers of contracts traded were 25,619 (Provisional).

Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 853 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 3,850 units open interests. The maximum OI outstanding for Calls was at 12000 SP (26,607 units) and that for Puts was at 10500 SP (47,048 units). The respective Support and Resistance levels of Nifty are: Resistance 11,896.48 -- Pivot Point 11,843.82 -- Support --11,781.93.

The Nifty Put Call Ratio (PCR) finally stood at (1.52) for October month contract. The top five scrips with highest PCR on HDFC (1.18), Titan Company (0.93), Indusind Bank (0.92), Apollo Tyre (0.88) and TCS (0.85).

Among most active underlying, TCS witnessed a contraction of 2,017 units of Open Interest in the October month futures contract, followed by Wipro witnessed an addition of 1,719 units of Open Interest in the October month future contract, Infosys witnessed an addition of 2,202 units of Open Interest in the October month futures contract, Reliance Industries witnessed an addition of 942 units of Open Interest in the October month futures contract and HCL Technologies witnessed an addition of 427 units of Open Interest in the October month future contract (Provisional).