Nifty ends in red zone

Bears continued to hold their control over the Indian equity market throughout the day and Nifty snapped the day’s trade below its crucial 10800 level. Market made negative start, as traders were cautious with a private report that India's GDP will contract by 3 percent in FY21 because of the coronavirus pandemic, assuming the economy is opened up fully from next month. Soon, market trimmed some of its losses and started trading near neutral lines, amid government has launched the Rewa Ultra Mega Solar Power project to the Nation. It is Asia's largest power project. The Rewa project will make the entire region a major hub for pure and clean energy in this decade. Market extended its downside till the last leg of trade, even after Commerce and Industry Minister Piyush Goyal held a meeting with sovereign funds and institutional investors on ways to promote investments in the country. In the meeting, the minister spoke on the need for large investments in the short term for India's long term development.

Traders were seen piling up positions in Pharma, Reality and FMCG, while selling was witnessed in PSU Bank, PVT Bank and Bank. The top gainers from the F&O segment were Vodafone Idea, Reliance Industries and Jindal Steel & Power. On the other hand, the top losers were Punjab National Bank, Tata Power Company and Mahanagar Gas. 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 increased by 0.12% and reached 24.94. The 50 share Nifty down by 45.40 points or 0.42% to settle at 10,768.05.

Nifty July 2020 futures closed at 10772.50 (LTP) on Friday, at a premium of 4.45 points over spot closing of 10768.05, while Nifty August 2020 futures ended at 10781.90 (LTP), at a premium of 13.85 points over spot closing. Nifty July futures saw an addition of 0.95 million (mn) units, taking the total outstanding open interest (OI) to 12.61 mn units. The near month derivatives contract will expire on July 30, 2020 (Provisional).

From the most active contracts, Reliance Industries July 2020 futures traded at a premium of 5.90 points at 1886.90 (LTP) compared with spot closing of 1881.00. The numbers of contracts traded were 58,512 (Provisional).

Bajaj Finance July 2020 futures traded at a discount of 11.40 points at 3292.40 (LTP) compared with spot closing of 3303.80. The numbers of contracts traded were 52,131 (Provisional).

State Bank Of India July 2020 futures traded at a premium of 0.35 points at 195.70 (LTP) compared with spot closing of 195.35. The numbers of contracts traded were 51,637 (Provisional).

Tata Consultancy Services July 2020 futures traded at a premium of 2.95 points at 2224.65 (LTP) compared with spot closing of 2221.70. The numbers of contracts traded were 36,361 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 0.60 points at 360.50 (LTP) compared with spot closing of 359.90. The numbers of contracts traded were 29,590 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with an addition of 0.13 million open interests. Among Nifty puts, 10500 SP from the July month expiry was the most active put with an addition of 0.14 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.75 mn) and that for Puts was at 10000 SP (3.43 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,820.63 -- Pivot Point 10,766.82 -- Support -- 10,714.23.

The Nifty Put Call Ratio (PCR) finally stood at (1.63) for July month contract. The top five scrips with highest PCR on Piramal Enterprises (1.24), Bharat Forge (1.13), Bajaj Finance (1.10), PVR (0.98) and Hindalco Industries (0.96).

Among most active underlying, Reliance Industries witnessed an addition of 1.86 million units of Open Interest in the July month futures contract, followed by Tata Consultancy Services witnessing an addition of 0.18 million units of Open Interest in the July month contract, State Bank Of India witnessed a contraction of 0.23 million units of Open Interest in the July month contract, Bajaj Finance witnessed an addition of 0.38 million units of Open Interest in the July month contract and Bharti Airtel witnessed an addition of 3.05 million units of Open Interest in the July month future contract.