Nifty regains on Tuesday; surpasses 11,050 mark

Nifty gave powerful performance by surging over one and half percent on Tuesday, surpassing its psychological level of 11,050. Earlier, market made a positive start, as some support came with CARE Ratings’ report that banks have sanctioned around 44 percent of the targeted amount of liquidity support to micro, small and medium enterprises (MSMEs) under the government's Emergency Credit Line Guarantee Scheme (ECLGS). Index added some more gains to trade firm after American pharmaceutical firm Eli Lilly and Company has started its phase 3 trial to study whether one of its experimental COVID-19 antibody treatments can prevent the virus infection in residents and staff at long-term care facilities.

In afternoon deals, market maintained its gaining momentum, even after the Asian Development Bank (ADB) said that global remittances will fall by 108.6 billion dollars if the Covid-19 economic impact persists throughout the year. This is equivalent to 18.3 per cent decline from what would have been expected without the impact of Covid-19. In the last leg of trade, market touched its intraday high point taking support with the private report that India’s exports in July have reached almost the level of the corresponding month last year. Commerce and Industry Minister Piyush Goyal said several indicators are reflecting that the economic activities are reviving in the country.

All of the NSE sectoral indices ended in green except IT. The top gainers from the F&O segment were Reliance Industries, Apollo Tyres and Zee Entertainment Enterprises. On the other hand, the top losers were Tech Mahindra, Shriram Transport Finance and Godrej Consumer Products. 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 decreased by 1.37 and reached 23.81. The 50 share Nifty up by 203.65 points or 1.87% to settle at 11,095.25.

Nifty August 2020 futures closed at 11107.50 (LTP) on Tuesday, at a premium of 12.25 points over spot closing of 11095.25, while Nifty September 2020 futures ended at 11113.30 (LTP), at a premium of 18.05 points over spot closing. Nifty August futures saw an addition of 0.84 million (mn) units, taking the total outstanding open interest (OI) to 11.04 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 8.50 points at 2167.00 (LTP) compared with spot closing of 2158.50. The numbers of contracts traded were 1,02,516 (Provisional).

HDFC Bank August 2020 futures traded at a premium of 3.65 points at 1043.50 (LTP) compared with spot closing of 1039.85. The numbers of contracts traded were 56,079 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 2.15 points at 353.25 (LTP) compared with spot closing of 351.10. The numbers of contracts traded were 32,058 (Provisional).

Bajaj Finance August 2020 futures traded at a premium of 2.00 points at 3240.00 (LTP) compared with spot closing of 3238.00. The numbers of contracts traded were 28,940 (Provisional).

Axis Bank August 2020 futures traded at a premium of 1.25 points at 430.15 (LTP) compared with spot closing of 428.90. The numbers of contracts traded were 27,390 (Provisional).

Among, Nifty calls, 11000 SP from the August month expiry was the most active call with a contraction of 0.23 million open interests. Among Nifty puts, 11000 SP from the August month expiry was the most active put with an addition of 0.02 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.19 mn) and that for Puts was at 11000 SP (3.40 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,168.97 -- Pivot Point 11,038.53 -- Support -- 10,964.82.

The Nifty Put Call Ratio (PCR) finally stood at (1.61) for August month contract. The top five scrips with highest PCR on Vedanta (1.08), Pidilite Industries (0.99), Dr Reddy’s Laboratories (0.94), PFC (0.90) and Ramco Cements (0.84).

Among most active underlying, Reliance Industries witnessed an addition of 3.31 million units of Open Interest in the August month futures contract, followed by HDFC Bank witnessing an addition of 1.64 million units of Open Interest in the August month contract, Bajaj Finance witnessed a contraction of 0.05 million units of Open Interest in the August month contract, ICICI Bank witnessed an addition of 1.54 million units of Open Interest in the August month contract and Bharat Petroleum Corporation witnessed a contraction of 0.80 million units of Open Interest in the August month future contract (Provisional).