Nifty manages to end in green zone

After trading fine fettle throughout the day, NSE benchmark index -- Nifty -- managed to close in green on Wednesday. Index made optimistic start, as traders took encouragement with Commerce and Industry Minister Piyush Goyal’s statement that the government is working on creating a genuine single window clearance mechanism and mapping the entire land bank available for the industry and industrial development. Further, markets extended its upside with Former Reserve Bank Governor D Subbarao’s statement that the government needs to build on some silver linings in the farm sector, driven by the prospect of a favourable monsoon, to speed up the economic recovery. Market maintained its gaining momentum till the late afternoon deals, as NITI Aayog’s flagship Atal Innovation Mission (AIM) is on full swing to keep the entrepreneurial spirit high across the country by teaming up with other Ministries and partners. However, the last leg of trade dragged market lower to end the session near neutral line in positive trend with marginal gains after former RBI governor Raghuram Rajan said non-performing assets of the banking sector are likely to witness unprecedented increase in the next six months and the sooner the problem is recognised the better it would be.

Traders were seen piling up positions in IT, FMCG and Pharma, while selling was witnessed in Reality, Media and PSU Bank. The top gainers from the F&O segment were Wipro, NIIT Technologies and Infosys. On the other hand, the top losers were Vodafone Idea, L&T Finance Holdings and Bharat Heavy Electricals. In the index option segment, maximum OI continues to be seen in the 11,200 - 11,500 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 1.30% and reached 26.29. The 50 share Nifty up by 10.85 points or 0.1% to settle at 10,618.20.

Nifty July 2020 futures closed at 10642.00 (LTP) on Wednesday, at a premium of 23.80 points over spot closing of 10618.20, while Nifty August 2020 futures ended at 10653.00 (LTP), at a premium of 34.80 points over spot closing. Nifty July futures saw an addition of 0.28 million (mn) units, taking the total outstanding open interest (OI) to 11.22 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 5.65 points at 1848.00 (LTP) compared with spot closing of 1842.35. The numbers of contracts traded were 1,70,053 (Provisional).

Bajaj Finance July 2020 futures traded at a premium of 5.50 points at 3172.00 (LTP) compared with spot closing of 3166.50. The numbers of contracts traded were 39,454 (Provisional).

Axis Bank July 2020 futures traded at a premium of 0.50 points at 429.50 (LTP) compared with spot closing of 429.00. The numbers of contracts traded were 36,753 (Provisional).

Wipro July 2020 futures traded at a premium of 0.80 points at 263.80 (LTP) compared with spot closing of 263.00. The numbers of contracts traded were 35,273 (Provisional).

Infosys July 2020 futures traded at a premium of 3.05 points at 837.00 (LTP) compared with spot closing of 833.95. The numbers of contracts traded were 33,388 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with an addition of 0.27 million open interests. Among Nifty puts, 10500 SP from the July month expiry was the most active put with an addition of 0.022 million open interests. The maximum OI outstanding for Calls was at 11000 SP (2.73 mn) and that for Puts was at 10000 SP (3.23 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,771.18 -- Pivot Point 10,674.47 -- Support -- 10,521.48.

The Nifty Put Call Ratio (PCR) finally stood at (1.50) for July month contract. The top five scrips with highest PCR on Wipro (2.02), Piramal Enterprises (1.31), Infosys (1.03), PVR (1.03) and Ujjivan Financial Services (0.95).

Among most active underlying, Reliance Industries witnessed an addition of 2.72 million units of Open Interest in the July month futures contract, followed by Infosys witnessing an addition of 5.26 million units of Open Interest in the July month contract, Wipro witnessed an addition of 11.41 million units of Open Interest in the July month contract, Bharti Airtel witnessed an addition of 1.61 million units of Open Interest in the July month contract and Bajaj Finance witnessed an addition of 0.23 million units of Open Interest in the July month future contract (Provisional).