Nifty ends slightly in green

Nifty ended slightly in green terrain on Wednesday. Market made a gap-up opening with the Department of Economic Affairs in its monthly macroeconomic report stating the worst may now be over for India and the road ahead will take the economy back on the track. Traders took support with Finance Ministry’s statement that banks have sanctioned loans of about Rs 1,37,586 crore under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the economic slowdown due to COVID-19 pandemic. But, in afternoon deals, market turned volatile after Indian service sector remained severely restricted by lockdown measures implemented to curb the coronavirus disease 2019 (COVID-19) pandemic in July. Market altered between positive and negative territory with ICRA’s report where it mentioned that the securitisation volumes are estimated to significantly drop to Rs 1.2-1.3 lakh crore during the current fiscal due to the impact of COVID-19 and lower availability of eligible loan pools for securitisation. Finally, Nifty finished the session in green zone.

Traders were seen piling up positions in Metal, Media and Auto, while selling was witnessed in Pharma, PSU Bank and FMCG. The top gainers from the F&O segment were Hindalco Industries, Tata Steel and Steel Authority of India. On the other hand, the top losers were Vodafone Idea, Godrej Properties 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 0.31 and reached 23.50. The 50 share Nifty up by 6.40 points or 0.06% to settle at 11,101.65.

Nifty August 2020 futures closed at 11128.00 (LTP) on Wednesday, at a premium of 26.35 points over spot closing of 11101.65, while Nifty September 2020 futures ended at 11134.95 (LTP), at a premium of 33.30 points over spot closing. Nifty August futures saw an addition of 0.03 million (mn) units, taking the total outstanding open interest (OI) to 10.65 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 11.45 points at 2143.40 (LTP) compared with spot closing of 2131.95. The numbers of contracts traded were 77,118 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 2.00 points at 355.20 (LTP) compared with spot closing of 353.20. The numbers of contracts traded were 40,632 (Provisional).

Axis Bank August 2020 futures traded at a premium of 0.50 points at 435.35 (LTP) compared with spot closing of 434.85. The numbers of contracts traded were 39,590 (Provisional).

SBIN August 2020 futures traded at a premium of 1.05 points at 192.80 (LTP) compared with spot closing of 191.75. The numbers of contracts traded were 36,822 (Provisional).

Bajaj Finance August 2020 futures traded at a premium of 2.30 points at 3272.30 (LTP) compared with spot closing of 3270.00. The numbers of contracts traded were 27,160 (Provisional).

Among, Nifty calls, 11500 SP from the August month expiry was the most active call with a contraction of 0.12 million open interests. Among Nifty puts, 11000 SP from the August month expiry was the most active put with a contraction of 0.18 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.26 mn) and that for Puts was at 11000 SP (2.99 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,196.85 -- Pivot Point 11,130.45 -- Support -- 11,035.25.

The Nifty Put Call Ratio (PCR) finally stood at (1.54) for August month contract. The top five scrips with highest PCR on Pidilite Industries (1.16), Vedanta (1.11), Maruti Suzuki India (0.96), Jindal Steel (0.95) and Dr Reddy’s Laboratories (0.91).

Among most active underlying, Reliance Industries witnessed an addition of 0.92 million units of Open Interest in the August month futures contract, followed by SBIN witnessing an addition of 5.04 million units of Open Interest in the August month contract, Bajaj Finance witnessed a contraction of 0.14 million units of Open Interest in the August month contract, ICICI Bank witnessed an addition of 2.06 million units of Open Interest in the August month contract and Axis Bank witnessed an addition of 0.66 million units of Open Interest in the August month future contract (Provisional).