Nifty ends higher for second consecutive day

Key equity benchmark -- Nifty -- finished the day’s trade with healthy gains, extending its winning streak to the second consecutive session. Earlier market made a positive start but soon turned volatile, as Asian Development Bank (ADB) in a supplement to its Asian Development Outlook (ADO) has forecasted that the Indian economy is expected to contract by 4% during the current financial year, hit hard by the COVID-19 pandemic. It added that countries in ‘Developing Asia’ will ‘barely grow’ in 2020. Further index added traction on the street, as traders took encouragement with Prime Minister Narendra Modi’s statement that economic indicators show that India is ready for a swift bounce back as business activity and demand are back to the level seen before the Covid-19 pandemic. Index continued its the gaining monument even after Icra has said that earnings of India Inc dropped by nearly a fourth in January-March of 2020 as compared to the year-ago period due to legacy problems. The agency warned deeper impact in the June quarter due to Covid-19-induced lockdown. Market continued its rally mood to reach at fresh intraday high points in last leg of trade and finally nifty ended last trading day of the week with the gains of over one and half percent.   

All of the NSE sectoral indices ended in green except IT and Metal. The top gainers from the F&O segment were The Indiabulls Housing Finance, Piramal Enterprises and Cholamandalam Investment and Finance Company. On the other hand, the top losers were Vodafone Idea, Info Edge (India) and NIIT Technologies. 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 4.74% and reached 29.96. The 50 share Nifty up by 152.75 points or 1.51% to settle at 10,244.40.

Nifty June 2020 futures closed at 10246.70 (LTP) on Friday, at a premium of 2.30 points over spot closing of 10244.40, while Nifty July 2020 futures ended at 10230.65 (LTP), at a discount of 13.75 points over spot closing. Nifty June futures saw an addition of 0.74 million (mn) units, taking the total outstanding open interest (OI) to 9.84 mn units. The near month derivatives contract will expire on June 25, 2020 (Provisional).

From the most active contracts, Reliance Industries June 2020 futures traded at a premium of 1.80 points at 1765.00 (LTP) compared with spot closing of 1763.20. The numbers of contracts traded were 1,01,596 (Provisional).

Bajaj Finance June 2020 futures traded at a premium of 2.75 points at 2694.10 (LTP) compared with spot closing of 2691.35. The numbers of contracts traded were 65,731 (Provisional).

ICICI Bank June 2020 futures traded at a discount of 0.15 points at 363.65 (LTP) compared with spot closing of 363.80. The numbers of contracts traded were 55,721 (Provisional).

Indusind Bank June 2020 futures traded at a premium of 0.80 points at 489.00 (LTP) compared with spot closing of 488.20. The numbers of contracts traded were 50,974 (Provisional).

Axis Bank June 2020 futures traded at a premium of 0.50 points at 417.65 (LTP) compared with spot closing of 417.15. The numbers of contracts traded were 47,237 (Provisional).

Among, Nifty calls, 10200 SP from the June month expiry was the most active call with an addition of 0.13 million open interests. Among Nifty puts, 10000 SP from the June month expiry was the most active put with an addition of 1.07 million open interests. The maximum OI outstanding for Calls was at 10500 SP (3.45 mn) and that for Puts was at 9000 SP (5.18 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,320.32 -- Pivot Point 10,196.48 -- Support -- 10,120.57.

The Nifty Put Call Ratio (PCR) finally stood at (1.40) for June month contract. The top five scrips with highest PCR on Adani Power (1.47), Cholamandalam Investment and Fin Co (1.41), Jindal Steel & Power (1.39), Vedanta (1.38) and Bajaj Finance (1.32).

Among most active underlying, Reliance Industries witnessed an addition of 4.68 million units of Open Interest in the June month futures contract, followed by Bajaj Finance witnessing an addition of 0.61 million units of Open Interest in the June month contract, State Bank Of India witnessed an addition of 9.13 million units of Open Interest in the June month contract, Muthoot Finance witnessed a contraction of 0.23 million units of Open Interest in the June month contract and ICICI Bank witnessed an addition of 15.11 million units of Open Interest in the June month future contract (Provisional).