Nifty ends trade near intraday low point

S&P CNX Nifty extended its fall for fourth straight day and ended the day’s trade with cut of over one and half percent. Earlier, market made gap- down opening with union Finance Minister Nirmala Sitharaman’s statement that the coronavirus pandemic has definitely hit the supply chains which are continuing to disrupt the economic revival. Further, market extended losses after Commerce and Industry Ministry’s data showed that contracting for the fourth consecutive month, the output of eight core infrastructure industries shrank by 15% in June due to fall in the production of coal, crude oil, natural gas, steel, cement and electricity. Index continued its free fall till the end of the session after Indian manufacturing activity declined in the month of July as demand conditions remained subdued with some businesses still closed amid lockdown extensions. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - fell to 46 in July as against 47.2 in June. Finally, Nifty ended day’s trade below its crucial 10900 mark.

All of the NSE sectoral indices ended in red except PSU Bank, Metal and Pharma. The top gainers from the F&O segment were Tata Motors, MindTree and Titan Company. On the other hand, the top losers were Bandhan Bank, Apollo Hospitals Enterprise and UPL. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,600 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 0.99 and reached 25.18. The 50 share Nifty down by 181.85 points or 1.64% to settle at 10,891.60.

Nifty August 2020 futures closed at 10917.00 (LTP) on Monday, at a premium of 25.40 points over spot closing of 10891.60, while Nifty September 2020 futures ended at 10925.00 (LTP), at a premium of 33.40 points over spot closing. Nifty August futures saw an addition of 1.27 million (mn) units, taking the total outstanding open interest (OI) to 11.53 mn units. The near month derivatives contract will expire on August 27, 2020 (Provisional).

From the most active contracts, Reliance Industries August 2020 futures traded at a premium of 10.25 points at 2017.45 (LTP) compared with spot closing of 2007.20. The numbers of contracts traded were 53,280 (Provisional).

Bandhan Bank August 2020 futures traded at a premium of 1.25 points at 310.00 (LTP) compared with spot closing of 308.75. The numbers of contracts traded were 39,644 (Provisional).

Tata Motors August 2020 futures traded at a premium of 0.55 points at 112.45 (LTP) compared with spot closing of 111.90. The numbers of contracts traded were 37,186 (Provisional).

SBIN August 2020 futures traded at a premium of 0.70 points at 192.90 (LTP) compared with spot closing of 192.20. The numbers of contracts traded were 34,784 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 1.75 points at 345.35 (LTP) compared with spot closing of 343.60. The numbers of contracts traded were 29,012 (Provisional).

Among, Nifty calls, 11000 SP from the August month expiry was the most active call with an addition of 0.62 million open interests. Among Nifty puts, 11000 SP from the August month expiry was the most active put with an addition of 0.23 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.14 mn) and that for Puts was at 11000 SP (3.51 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,005.68 -- Pivot Point 10,943.97 -- Support -- 10,829.88.

The Nifty Put Call Ratio (PCR) finally stood at (1.57) for August month contract. The top five scrips with highest PCR on Exide Industries (1.33), Ramco Cements (1.21), Pidilite Industries (1.11), Vedanta (1.10) and Ujjivan Financial Services (1.09).

Among most active underlying, Reliance Industries witnessed an addition of 2.75 million units of Open Interest in the August month futures contract, followed by Tata Motors witnessing an addition of 30.22 million units of Open Interest in the August month contract, SBIN witnessed an addition of 5.29 million units of Open Interest in the August month contract, Sun Pharmaceutical Industries witnessed an addition of 0.91 million units of Open Interest in the August month contract and Bandhan Bank witnessed an addition of 16.95 million units of Open Interest in the August month future contract (Provisional).