Buying in late trade takes Nifty above 10,700 mark

S&P CNX -- Nifty -- ended the day’s trade with gain of over a percent on Thursday. Earlier, market made a slightly positive start, as former RBI Governor Raghuram Rajan said the government should focus on spending on profitable firms, which have been incurring costs but have not earned revenues in the last four months. Market continued its fine fettle trade, as traders took support with NITI Aayog CEO’s statement that India is set to make the Public Distribution System location independent to ensure that no one, especially the inter-state migrants, is left behind, citing the One Nation, One Card initiative being implemented by the government as a transformative solution in response to the COVID-19 pandemic.

Sentiment remained positive even after India’s merchandise exports declined by 12.41% to $21.91 billion in June 2020 as compared to same period of last year, mainly due to drop in shipments of petroleum, textiles, engineering goods, and gems and jewellery items. Buying got intensified during final hours of trade to touch intraday high point, as India and the European Union adopted a joint declaration on moving towards a more circular economic model that provides for reduction in primary resource consumption and enhances the use of secondary raw materials.

All of the NSE sectoral indices ended in green except Media. The top gainers from the F&O segment were Infosys, Max Financial Services and Bharat Petroleum Corporation. On the other hand, the top losers were Vodafone Idea, Bharti Infratel and Tech Mahindra. 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 3.53% and reached 25.36. The 50 share Nifty up by 121.75 points or 1.15% to settle at 10,739.95.

Nifty July 2020 futures closed at 10697.90 (LTP) on Thursday, at a discount of 42.05 points over spot closing of 10739.95, while Nifty August 2020 futures ended at 10708.00 (LTP), at a discount of 31.95 points over spot closing. Nifty July futures saw an addition of 1.59 million (mn) units, taking the total outstanding open interest (OI) to 11.17 (mn) units. The near month derivatives contract will expire on July 30, 2020 (Provisional).

From the most active contracts, Infosys July 2020 futures traded at a discount of 3.25 points at 906.75 (LTP) compared with spot closing of 910.00. The numbers of contracts traded were 78,341 (Provisional).

Reliance Industries July 2020 futures traded at a premium of 2.75 points at 1844.80 (LTP) compared with spot closing of 1842.05. The numbers of contracts traded were 58,595 (Provisional).

Bajaj Finance July 2020 futures traded at a premium of 3.00 points at 3206.00 (LTP) compared with spot closing of 3203.00. The numbers of contracts traded were 36,719 (Provisional).

Tata Consultancy Services July 2020 futures traded at a premium of 0.35 points at 2233.35 (LTP) compared with spot closing of 2233.00. The numbers of contracts traded were 31,844 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 0.85 points at 345.70 (LTP) compared with spot closing of 344.85. The numbers of contracts traded were 26,964 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with an addition of 0.020 million open interests. Among Nifty puts, 10500 SP from the July month expiry was the most active put with an addition of 0.40 million open interests. The maximum OI outstanding for Calls was at 11000 SP (2.57 mn) and that for Puts was at 10000 SP (3.45 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,798.43 -- Pivot Point 10,696.82 --- Support -- 10,638.33.

The Nifty Put Call Ratio (PCR) finally stood at (1.52) for July month contract. The top five scrips with highest PCR on Wipro (1.89), Infosys (1.49), Piramal Enterprises (1.28), PVR (1.02) and Ujjivan Financial Services (0.95).

Among most active underlying, Infosys witnessed an addition of 3.34 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessing a contraction of 1.61 million units of Open Interest in the July month contract, Tata Consultancy Services witnessed an addition of 0.69 million units of Open Interest in the July month contract, Bajaj Finance witnessed a contraction of 0.10 million units of Open Interest in the July month contract and Wipro witnessed a contraction of 1.79 million units of Open Interest in the July month future contract.