Nifty ends near day’s high point

S&P CNX Nifty exhibited a smart performance in Thursday’s trade ending with a gain of above two percent. Market begun day on a somber note amid escalating border tensions with China and a spike in coronavirus cases both at home and abroad. The domestic sentiments were cautious as India has added nearly 13,000 cases of coronavirus in 24 hours, taking its total to 367,264, while death toll stands at 12,262. However, soon market entered into green territory to trade in positive range, as traders found some support with Federation of Indian Export Organisations (FIEO) President S K Saraf’s statement that the ongoing India-China border tensions may not have any immediate impact on the bilateral trade relations.

The index continued its gaining monument with rating agency Crisil’s report stated that the liquidity cover for non-banking financial companies (NBFCs) has not been affected much in April and May, as they managed partial collections and on lack of fresh disbursements. In the last leg of trade market touched its intraday high point, as investments through participatory notes (P-notes) in the domestic capital market rose to Rs 60,027 crore till May-end, making it the second consecutive monthly increase.

All of the NSE sectoral indices ended in green except Pharma. The top gainers from the F&O segment were The Bharat Heavy Electricals, Muthoot Finance and Bajaj Finserv. On the other hand, the top losers were Indraprastha Gas, Cummins India and NMDC. In the index option segment, maximum OI continues to be seen in the 10,300 - 10,700 calls and 8900 - 9100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 5.70% and reached 31.45. The 50 share Nifty up by 210.50 points or 2.13% to settle at 10,091.65.

Nifty June 2020 futures closed at 10074.70 (LTP) on Thursday, at a discount of 16.95 points over spot closing of 10091.65, while Nifty July 2020 futures ended at 10052.00 (LTP), at a discount of 39.65 points over spot closing. Nifty June futures saw an addition of 0.63 million (mn) units, taking the total outstanding open interest (OI) to 10.14 mn units. The near month derivatives contract will expire on June 25, 2020 (Provisional).

From the most active contracts, Bajaj Finance June 2020 futures traded at a premium of 5.80 points at 2533.00 (LTP) compared with spot closing of 2527.20. The numbers of contracts traded were 42,974 (Provisional).

Reliance Industries June 2020 futures traded at a discount of 2.00 points at 1660.90 (LTP) compared with spot closing of 1662.90. The numbers of contracts traded were 42,656 (Provisional).

Housing Development Finance Corporation June 2020 futures traded at a premium of 1.45 points at 1848.95 (LTP) compared with spot closing of 1847.50. The numbers of contracts traded were 35,011 (Provisional).

Indusind Bank June 2020 futures traded at a premium of 0.90 points at 497.30 (LTP) compared with spot closing of 496.40. The numbers of contracts traded were 34,873 (Provisional).

ICICI Bank June 2020 futures traded at a premium of 0.65 points at 352.05 (LTP) compared with spot closing of 351.40. The numbers of contracts traded were 34,109 (Provisional).

Among, Nifty calls, 10000 SP from the June month expiry was the most active call with an addition of 0.039 million open interests. Among Nifty puts, 9800 SP from the June month expiry was the most active put with an addition of 1.08 million open interests. The maximum OI outstanding for Calls was at 10500 SP (2.71 mn) and that for Puts was at 9000 SP (4.44 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,186.88 -- Pivot Point 10,015.97 -- Support -- 9,920.73.

The Nifty Put Call Ratio (PCR) finally stood at (1.41) for June month contract. The top five scrips with highest PCR on Muthoot Finance (1.52), Adani Power (1.45), Vedanta (1.35), Hindalco Industries (1.32) and Jindal Steel & Power (1.29).

Among most active underlying, Reliance Industries witnessed an addition of 1.53 million units of Open Interest in the June month futures contract, followed by Muthoot Finance witnessing an addition of 1.86 million units of Open Interest in the June month contract, Bharti Airtel witnessed an addition of 0.99 million units of Open Interest in the June month contract, Bajaj Finance witnessed an addition of 0.76 million units of Open Interest in the June month contract and State Bank Of India witnessed an addition of 7.65 million units of Open Interest in the June month future contract (Provisional).