Nifty gains for third consecutive day

Nifty witnessed a wonderful performance by surging above one and half a percent on Friday. Market made a positive start, as traders took encouragement with report that investments through participatory notes (P-notes) in the domestic capital market surged to Rs 62,138 crore till June-end, making it the third consecutive monthly rise. Sentiments remained optimistic throughout the day, as Union Minister Nitin Gadkari has asked players to join hands with the government to rescue COVID-19-hit economy by taking up projects on public private partnership (PPP) mode. At the same time, he suggested all stakeholders, including banks, financial institutions, infrastructure, MSMEs, agriculture and industries, to jointly create demand to address the need of liquidity in the economy. Index continued its green trend even after domestic rating agency ICRA in its latest report has revised its forecast for contraction in India’s Gross Domestic Product (GDP) growth to 9.5 percent in the current fiscal (FY21) from earlier assessment of 5 percent. In the last leg of trade, market spike up to trade above 10850 mark after Indian Oilseeds and Produce Export Promotion Council (IOPEPC) Chairman Khushwant Jain has said that the impact of the pandemic on the country's agriculture exports such as oil seeds and rice is much lower and the sector is recording healthy growth rate.

All of the NSE sectoral indices ended in green except IT. The top gainers from the F&O segment were Vodafone Idea, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. On the other hand, the top losers were Hindalco Industries, Britannia Industries and Nestle India. In the index option segment, maximum OI continues to be seen in the 11,300 - 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 4.75% and reached 24.15. The 50 share Nifty up by 161.75 points or 1.51% to settle at 10,901.70.

Nifty July 2020 futures closed at 10931.00 (LTP) on Friday, at a premium of 29.30 points over spot closing of 10901.70, while Nifty August 2020 futures ended at 10937.45 (LTP), at a premium of 35.75 points over spot closing. Nifty July futures saw an addition of 0.73 million (mn) units, taking the total outstanding open interest (OI) to 11.26 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 6.10 points at 1922.10 (LTP) compared with spot closing of 1916.00. The numbers of contracts traded were 55,404 (Provisional).

Axis Bank July 2020 futures traded at a premium of 1.30 points at 435.80 (LTP) compared with spot closing of 434.50. The numbers of contracts traded were 36,855 (Provisional).

Bajaj Finance July 2020 futures traded at a discount of 4.00 points at 3311.00 (LTP) compared with spot closing of 3315.00. The numbers of contracts traded were 32,130 (Provisional).

HDFC Bank July 2020 futures traded at a discount of 2.35 points at 1101.00 (LTP) compared with spot closing of 1103.35. The numbers of contracts traded were 30,518 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 0.90 points at 355.50 (LTP) compared with spot closing of 354.60. The numbers of contracts traded were 29,920 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with a contraction of 0.065 million open interests. Among Nifty puts, 10500 SP from the July month expiry was the most active put with an addition of 0.22 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.57 mn) and that for Puts was at 10000 SP (3.43 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,973.55 -- Pivot Point 10,861.60 --Support -- 10,789.75.

The Nifty Put Call Ratio (PCR) finally stood at (1.63) for July month contract. The top five scrips with highest PCR on Wipro (1.88), Infosys (1.37), Piramal Enterprises (1.26), Bharat Petroleum Corp (1.14) and Mahindra & Mahindra (1.12).

Among most active underlying, Reliance Industries witnessed a contraction of 0.66 million units of Open Interest in the July month futures contract, followed by Infosys witnessing a contraction of 2.35 million units of Open Interest in the July month contract, HCL Technologies witnessed an addition of 0.46 million units of Open Interest in the July month contract, Britannia Industries witnessed an addition of 0.06 million units of Open Interest in the July month contract and Bharat Petroleum Corporation witnessed an addition of 0.82 million units of Open Interest in the July month future contract.