Nifty ends in green zone; reclaims 10,500 mark

Nifty gave powerful performance by surging over a percent on Thursday, surpassing its psychological level of 11,500.Earlier, market made optimistic start, as traders took encouragement with Finance minister Nirmala Sitharaman’s statement that the government is committed to undertaking reforms to make the tax administration simple for businesses, particularly the micro, small and medium enterprises (MSMEs). Market extended its gains, as the government approved a scheme under which the eligible non-bank lenders will be provided short-term liquidity through a special purpose vehicle (SPV) set up by the SBICAP securities, a subsidiary of the State Bank of India (SBI).

Traders overlooked Fitch Ratings’ report stating that India's non-bank financial institutions (NBFIs) will continue to face elevated near-term risks even as economic activity picks up with the easing of the country's nationwide lockdown. Index maintained upward momentum till the end of the session, as Ministry of Finance in its latest report has said that the gross Goods and Services Tax (GST) revenue collected in the month of June, 2020 is Rs. 90,917 crore of which CGST is Rs 18,980 crore, SGST is Rs 23,970 crore, IGST is Rs 40,302 crore (including Rs 15,709 crore collected on import of goods) and Cess is Rs 7,665 crore (including Rs 607 crore collected on import of goods).

Traders were seen piling up positions in Auto, IT and Metal, while selling was witnessed in Bank, PSU Bank and Reality. The top gainers from the F&O segment were The Tata Power Company, Motherson Sumi Systems and Equitas Holdings. On the other hand, the top losers were Just Dial, Axis Bank and Divi's Laboratories. In the index option segment, maximum OI continues to be seen in the 11,200 - 11,700 calls and 9700- 10300 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 5.73% and reached 26.50. The 50 share Nifty up by 121.65 points or 1.17% to settle at 10,551.70.

Nifty July 2020 futures closed at 10551.90 (LTP) on Thursday, at a premium of 0.20 points over spot closing of 10551.70, while Nifty August 2020 futures ended at 10542.75 (LTP), at a discount of  8.95 points over spot closing. Nifty July futures saw an addition of 1.27 million (mn) units, taking the total outstanding open interest (OI) to 12.01 mn units. The near month derivatives contract will expire on July 30, 2020 (Provisional).

From the most active contracts, Axis Bank July 2020 futures traded at a premium of 1.10 points at 425.90 (LTP) compared with spot closing of 424.80. The numbers of contracts traded were 43,400 (Provisional). 

ICICI Bank July 2020 futures traded at a premium of 1.20 points at 364.80 (LTP) compared with spot closing of 363.60. The numbers of contracts traded were 37,863 (Provisional).

Bajaj Finance July 2020 futures traded at a discount of 2.00 points at 2948.00 (LTP) compared with spot closing of 2950.00. The numbers of contracts traded were 37,562 (Provisional).

Reliance Industries July 2020 futures traded at a premium of 1.50 points at 1761.00 (LTP) compared with spot closing of 1759.50. The numbers of contracts traded were 35,502 (Provisional).

HDFC Bank July 2020 futures traded at a discount of 1.20 points at 1090.30 (LTP) compared with spot closing of 1091.50. The numbers of contracts traded were 30,146 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with an addition of 0.18 million open interests. Among Nifty puts, 10000 SP from the July month expiry was the most active put with an addition of 0.32 million open interests. The maximum OI outstanding for Calls was at 11000 SP (2.24 mn) and that for Puts was at 10000 SP (3.06 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,604.75 -- Pivot Point 10,545.15 -- Support -- 10,492.10.

The Nifty Put Call Ratio (PCR) finally stood at (1.54) for July month contract. The top five scrips with highest PCR on Piramal Enterprises (1.16), Vedanta (1.05), Bajaj Finance (1.01), Bharat Forge (1.01) and HDFC (0.96).

Among most active underlying, Reliance Industries witnessed an addition of 0.68 million units of Open Interest in the July month futures contract, followed by Bajaj Finance witnessing an addition of 0.09 million units of Open Interest in the July month contract, Axis Bank witnessed a contraction of 3.55 million units of Open Interest in the July month contract, HDFC Bank witnessed a contraction of 1.23 million units of Open Interest in the July month contract and Infosys witnessed a contraction of 0.46 million units of Open Interest in the July month future contract.