Nifty ends lower on Wednesday

The local benchmark -- Nifty -- ended the day’s trade with the cut of over half a percent. Market made a negative start, as global forecasting firm Oxford Economics said that it expects India's GDP growth to lose momentum from late third quarter (October-December) of the current fiscal as the push from the initial reopening fades. Soon market entered into green territory for little time and again slipped into red zone even after Industry body CII’s statement that high frequency indicators are showing a material improvement as compared to multi-year low seen in April, and pointing towards a V-shaped recovery after the economy suffered on account of lockdown amid the coronavirus pandemic.

Further, market started trading below neutral line, as traders were cautious with rises in new coronavirus cases. Selling got intensified during the last leg of trade, which dragged market lower to touch intraday low point, as private report stated that the outlook for India's reeling economy has worsened again as business activity slows and COVID-19 infections soar. 

Traders were seen piling up positions in Pharma, PSU Bank and Metal, while selling was witnessed in Auto, IT and Fin Service. The top gainers from the F&O segment were Dr. Reddy's Laboratories, NIIT Technologies and SRF. On the other hand, the top losers were Reliance Industries, GMR Infrastructure and Piramal Enterprises. In the index option segment, maximum OI continues to be seen in the 11,200 - 11,400 calls and 10900 - 11100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.47 and reached 24.11. The 50 share Nifty down by 97.70 points or 0.86% to settle at 11,202.85.

Nifty July 2020 futures closed at 11211.55 (LTP) on Wednesday, at a premium of 8.70 points over spot closing of 11202.85, while Nifty August 2020 futures ended at 11213.60 (LTP), at a premium of 10.75 points over spot closing. Nifty July futures saw an addition of 1.29 million (mn) units, taking the total outstanding open interest (OI) to 8.45 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 4.00 points at 2096.00 (LTP) compared with spot closing of 2092.00. The numbers of contracts traded were 62,900 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 0.45 points at 351.65 (LTP) compared with spot closing of 351.20. The numbers of contracts traded were 45,188 (Provisional).

HDFC Bank July 2020 futures traded at a premium of 4.70 points at 1069.70 (LTP) compared with spot closing of 1065.00. The numbers of contracts traded were 33,863 (Provisional).

HDFC July 2020 futures traded at a premium of 4.25 points at 1883.90 (LTP) compared with spot closing of 1879.65. The numbers of contracts traded were 32,380 (Provisional).

State Bank of India July 2020 futures traded at a premium of 0.45 points at 191.50 (LTP) compared with spot closing of 191.05. The numbers of contracts traded were 31,982 (Provisional).

Among, Nifty calls, 11300 SP from the July month expiry was the most active call with an addition of 2.51 million open interests. Among Nifty puts, 11200 SP from the July month expiry was the most active put with a contraction of 0.62 million open interests. The maximum OI outstanding for Calls was at 11300 SP (5.56 mn) and that for Puts was at 11000 SP (4.08 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,312.92 -- Pivot Point 11,231.33 -- Support -- 11,121.27.

The Nifty Put Call Ratio (PCR) finally stood at (1.14) for July month contract. The top five scrips with highest PCR on Infosys (1.39), Eicher Motors (1.34), Wipro (1.30), Mahindra & Mahindra Financial Services (1.26), Mahindra & Mahindra (1.25) and Bajaj Auto (1.24).

Among most active underlying, Reliance Industries witnessed an addition of 1.62 million units of Open Interest in the July month futures contract, followed by State Bank of India witnessing an addition of 7.21 million units of Open Interest in the July month contract, Bajaj Finance witnessed a contraction of 0.35 million units of Open Interest in the July month contract, Dr. Reddy's Laboratories witnessed an addition of 0.36 million units of Open Interest in the July month contract and ICICI Bank witnessed an addition of 9.17 million units of Open Interest in the July month future contract (Provisional).