Nifty trade jubilantly; surpasses 11,150-mark

NSE benchmark index -- Nifty -- ended range bound trade with gains of over a percent. The day began on a positive note, as traders took support with the preliminary data from early stages of human trials showing that the COVID-19 vaccine candidate being developed by the Oxford University and AstraZeneca is safe, well-tolerated, and immunogenic (capable of inducing an immune response). Further, market added more gains to trade firm throughout the day, with a labour ministry’s statement that retail inflation for farm and rural workers in June eased to 7.16 per cent and 7 per cent, respectively, as compared to May this year.

Index continued its rally mood to reach at intraday high point after Commerce and Industry Ministry initiated a probe into alleged low-cost imports of a certain type of yarn from China, which is impacting the domestic industry. The Commerce Ministry's investigation arm Directorate General of Trade Remedies (DGTR) has started the probe to assess if the subsidy programme of China for exports of 'Viscose Rayon Filament Yarn above 60 deniers' is impacting the Indian industry. Traders ignored External Affairs Minister S Jaishankar’s statement that the free trade agreements (FTAs) that India entered into over the years have not been able to largely serve the country's economy well in terms of building its capacities, though all such pacts are not the same. Finally, Nifty ended wonderful day of trade above 11,150 mark.

All of the NSE sectoral indices ended in green except Pharma, FMCG. The top gainers from the F&O segment were Piramal Enterprises, Power Grid Corporation of India and Indian Oil Corporation. On the other hand, the top losers were Vodafone Idea, Bajaj Finance and Bajaj Finserv. 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 1.15 and reached 24.42. The 50 share Nifty up by 140.05 points or 1.27% to settle at 11,162.25.

Nifty July 2020 futures closed at 11175.00 (LTP) on Tuesday, at a premium of 12.75 points over spot closing of 11162.25, while Nifty August 2020 futures ended at 11178.45 (LTP), at a premium of 16.20 points over spot closing. Nifty July futures saw an addition of 0.59 million (mn) units, taking the total outstanding open interest (OI) to 11.35 mn units. The near month derivatives contract will expire on July 30, 2020 (Provisional).

From the most active contracts, Bajaj Finance July 2020 futures traded at a discount of 27.00 points at 3277.00 (LTP) compared with spot closing of 3304.00. The numbers of contracts traded were 1,05,430 (Provisional).

Reliance Industries July 2020 futures traded at a premium of 1.50 points at 1975.00 (LTP) compared with spot closing of 1973.50. The numbers of contracts traded were 45,902 (Provisional).

Axis Bank July 2020 futures traded at a premium of 0.45 points at 446.35 (LTP) compared with spot closing of 445.90. The numbers of contracts traded were 44,680 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 1.10 points at 380.00 (LTP) compared with spot closing of 378.90. The numbers of contracts traded were 43,540 (Provisional).

HDFC Bank July 2020 futures traded at a discount of 0.20 points at 1139.70 (LTP) compared with spot closing of 1139.90. The numbers of contracts traded were 31,015 (Provisional).

Among, Nifty calls, 11200 SP from the July month expiry was the most active call with a contraction of 0.14 million open interests. Among Nifty puts, 11000 SP from the July month expiry was the most active put with an addition of 1.34 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.90 mn) and that for Puts was at 10000 SP (3.77 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,190.12 -- Pivot Point 11,151.68 -- Support -- 11,123.82.

The Nifty Put Call Ratio (PCR) finally stood at (1.79) for July month contract. The top five scrips with highest PCR on Wipro (1.52), Infosys (1.46), Piramal Enterprises (1.42), Eicher Motors (1.10) and Hero Motocorp (1.08).

Among most active underlying, Bajaj Finance witnessed an addition of 1.61 million units of Open Interest in the July month futures contract, followed by Reliance Industries witnessing a contraction of 0.48 million units of Open Interest in the July month contract, Bharat Petroleum Corporation witnessed an addition of 4.30 million units of Open Interest in the July month contract, Infosys witnessed an addition of 1.12 million units of Open Interest in the July month contract and Axis Bank witnessed an addition of 5.60 million units of Open Interest in the July month future contract (Provisional).