Nifty ends with healthy gains

NSE benchmark index --Nifty-- ended the first day of trading week with healthy gains, surpassing its psychological level of 11,850. The day began on a positive note with Finance Minister Nirmala Sitharaman’s statement that the government has taken a host of initiatives, including a stimulus package totalling 10 per cent of the country's GDP and major reforms in the labour sector, to combat the impact of the coronavirus pandemic. Market continued its trade in green territory, as government said central public sector enterprises have cleared payments to the tune of Rs 13,400 crore owed to micro, small and medium enterprises in the last five months and Rs 3,700 crore was paid to the units in September alone. The micro, small and medium enterprises (MSME) Ministry this month has written to the top management of over 2,800 corporates by name to make payment of pending dues of MSMEs.

Index extended its gains till the end of the session even after SEBI’s report that the value of P-note investments in Indian markets - equity, debt, hybrid securities and derivatives - declined to Rs 69,821 crore at September-end after hitting a 10-month high of Rs 74,027 crore at the end of August. Finally, Nifty finished the day with the gains of above half a percent. 

Most of the sectoral indices ended in green except Auto, IT and Media. The top gainers from the F&O segment were Bank of Baroda, Federal Bank and BHEL. On the other hand, the top losers were Divi's Laboratories, Info Edge (India) and Eicher Motors. In the index option segment, maximum OI continues to be seen in the 12,000 - 12,700 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 0.80% and reached 21.82.The 50 share Nifty up by 110.60 points or 0.94% to settle at 11,873.05.

Nifty October 2020 futures closed at 11892.50 (LTP) on Monday, at a premium of 19.45 points over spot closing of 11873.05, while Nifty November 2020 futures ended at 11918.00 (LTP), at a premium of 44.95 points over spot closing.  Nifty October futures saw an addition of 2,586 units, taking the total open interest (Contracts) to 1,42,824. The near month derivatives contract will expire on October 29, 2020 (Provisional).

From the most active contracts, Reliance Industries October 2020 futures traded at a premium of 7.45 points at 2182.50 (LTP) compared with spot closing of 2175.05. The numbers of contracts traded were 43,545 (Provisional).

HDFC Bank October 2020 futures traded at a premium of 4.65 points at 1207.00 (LTP) compared with spot closing of 1202.35. The numbers of contracts traded were 41,759 (Provisional).

ICICI Bank October 2020 futures traded at a premium of 1.45 points at 417.80 (LTP) compared with spot closing of 416.35. The numbers of contracts traded were 34,049 (Provisional).

SBIN October 2020 futures traded at a premium of 0.65 points at 204.60 (LTP) compared with spot closing of 203.95. The numbers of contracts traded were 30,792 (Provisional).

Axis Bank October 2020 futures traded at a premium of 1.60 points at 493.65 (LTP) compared with spot closing of 492.05. The numbers of contracts traded were 29,055 (Provisional).

Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 2,480 units open interests. Among Nifty puts, 11800 SP from the October month expiry was the most active put with an addition of 2,484 units open interests. The maximum OI outstanding for Calls was at 12500 SP (32,403 units) and that for Puts was at 10500 SP (44,623 units). The respective Support and Resistance levels of Nifty are: Resistance 11,907.40 -- Pivot Point 11,863.90 -- Support -- 11,829.55.

The Nifty Put Call Ratio (PCR) finally stood at (1.37) for October month contract. The top five scrips with highest PCR on HDFC (1.00), JSW Steel (0.97), Axis Bank (0.96), ICICI Bank (0.88) and Indusind Bank (0.81).

Among most active underlying, Reliance Industries witnessed an addition of 787 units of Open Interest in the October month futures contract followed by HDFC Bank witnessed an addition of 1,574 units of Open Interest in the October month futures contract, ICICI Bank witnessed an addition of 2,506 units of Open Interest in the October month futures contract, Bajaj Finance witnessed an addition of 1,262 units of Open Interest in the October month futures contract and Infosys witnessed an addition of 2,010 units of Open Interest in the October month futures contract (Provisional).