Nifty manages to end in green

After making negative start, S&P CNX -- Nifty -- managed to finish the session with minor gains. It was a negative start to the market, with Finance Minister Nirmala Sitharaman’s statement that the government has begun an exercise to assess the impact of the pandemic on the economy and likely contraction in GDP, even as she did not rule out the possibility of another stimulus to boost growth. But soon market jumped up into positive territory after Finance Ministry has said that banks have covered 1.5 crore farmers under the Kisan Credit Card (KCC) scheme to sanction credit limit of Rs 1.35 lakh crore to help them meet financial requirements during the coronavirus disease (covid-19) pandemic.

Further, market maintained its upside, as traders took support with data released by the Ministry of Statistics and Programme Implementation (MoSPI) in the quarterly bulletin of the Periodic Labour Force Survey (PLFS) showing that unemployment in urban areas fell to 8.4% in July- September 2019 from 8.9% in the June quarter last year. In last leg trade market trimmed some of its gains but managed to end the day above 11850 mark, as Finance Minister Nirmala Sitharaman exhorted large central public sector enterprises (CPSEs) to achieve by December 75 per cent of their planned capital expenditure (capex) target for 2020-21, to support economic growth hit by the COVID-19 crisis.

Most of the sectoral indices ended in green except FMGC, Metal and PSU Bank. The top gainers from the F&O segment were Vodafone Idea, Mindtree and Zee Entertainment Enterprises. On the other hand, the top losers were Britannia Industries, Bank of Baroda and ONGC. 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 3.99% and reached 22.69.The 50 share Nifty up by 23.75 points or 0.20% to settle at 11,896.80.

Nifty October 2020 futures closed at 11895.30 (LTP) on Tuesday, at a discount of 1.50 points over spot closing of 11896.80, while Nifty November 2020 futures ended at 11921.00 (LTP), at a premium of 24.20 points over spot closing. Nifty October futures saw an addition of 8,763 units, taking the total open interest (Contracts) to 1,48,377. The near month derivatives contract will expire on October 29, 2020 (Provisional).

From the most active contracts, HUL October 2020 futures traded at a discount of 11.10 points at 2163.10 (LTP) compared with spot closing of 2174.20. The numbers of contracts traded were 32,193 (Provisional).

Reliance Industries October 2020 futures traded at a premium of 5.60 points at 2161.45 (LTP) compared with spot closing of 2155.85. The numbers of contracts traded were 24,515 (Provisional).

Larsen & Toubro October 2020 futures traded at a premium of 2.10 points at 920.00 (LTP) compared with spot closing of 917.90. The numbers of contracts traded were 24,337 (Provisional).

Bharti Airtel October 2020 futures traded at a premium of 1.25 points at 406.90 (LTP) compared with spot closing of 405.65. The numbers of contracts traded were 21,888 (Provisional).

HDFC Bank October 2020 futures traded at a premium of 1.40 points at 1226.00 (LTP) compared with spot closing of 1224.60. The numbers of contracts traded were 21,192 (Provisional).

Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 1,053 units open interests. Among Nifty puts, 11800 SP from the October month expiry was the most active put with an addition of 559 units open interests. The maximum OI outstanding for Calls was at 12500 SP (33,369 units) and that for Puts was at 10500 SP (44,898 units). The respective Support and Resistance levels of Nifty are: Resistance 11,951.62 -- Pivot Point 11,894.43 -- Support -- 11,839.62.

The Nifty Put Call Ratio (PCR) finally stood at (1.40) for October month contract. The top five scrips with highest PCR on JSW Steel (1.02), Axis Bank (0.95), HDFC (0.93), Container Corporation of India (0.85) and Indusind Bank (0.84).

Among most active underlying, Reliance Industries witnessed an addition of 2,144 units of Open Interest in the October month futures contract followed by HCL Technologies witnessed an addition of 633 units of Open Interest in the October month futures contract, Hindustan Unilever witnessed an addition of 1,861 units of Open Interest in the October month futures contract, Bharti Airtel witnessed an addition of 1,086 units of Open Interest in the October month futures contract and Infosys witnessed an addition of 373 units of Open Interest in the October month futures contract (Provisional).