Nifty ends in green terrain

The local benchmark -- Nifty -- ended the Thursday’s session with the gains of above half a percent. Market made gap-up opening with Director General of Foreign Trade Amit Yadav’s statement that the Directorate General of Foreign Trade will realign itself along the lines of Prime Minister’s Make in India and will push for production of items domestically to cut down imports. Further, index added some more gains, as market took some support with the Department for Promotion of Industry and Internal Trade’s (DPIIT) statement that it will rope in a consulting agency to scrutinise tenders of government procuring entities for compliance with public procurement regulations that aim at promoting 'Made in India' products. In afternoon trade, market spiked up to touch its intraday high point after Reserve Bank of Indian (RBI) has decided to keep benchmark repo rate unchanged at 4 per cent, already the lowest since 2000, and reverse repo rate at 3.75 per cent. However, in the last leg of trade, market trimmed some of its gains to close the session above 11,200 mark.

All of the NSE sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were Tata Consumer Products, Mahindra & Mahindra Financial Services and Aurobindo Pharma. On the other hand, the top losers were Bata India, Muthoot Finance and Bandhan Bank. 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 0.42 and reached 23.15. The 50 share Nifty up by 98.50 points or 0.89% to settle at 11,200.15.

Nifty August 2020 futures closed at 11212.00 (LTP) on Thursday, at a premium of 11.85 points over spot closing of 11200.15, while Nifty September 2020 futures ended at 11219.15 (LTP), at a premium of 19.00 points over spot closing. Nifty August futures saw an addition of 0.63 million (mn) units, taking the total outstanding open interest (OI) to 10.58 mn units. The near month derivatives contract will expire on August 27, 2020 (Provisional).

From the most active contracts, ICICI Bank August 2020 futures traded at a premium of 1.25 points at 360.75 (LTP) compared with spot closing of 359.50. The numbers of contracts traded were 44,492 (Provisional).

Reliance Industries August 2020 futures traded at a premium of 11.25 points at 2147.80 (LTP) compared with spot closing of 2136.55. The numbers of contracts traded were 44,397 (Provisional).

Bajaj Finance August 2020 futures traded at a premium of 10.00 points at 3355.00 (LTP) compared with spot closing of 3345.00. The numbers of contracts traded were 31,658 (Provisional).

SBIN August 2020 futures traded at a premium of 0.80 points at 191.95 (LTP) compared with spot closing of 191.15. The numbers of contracts traded were 30,000 (Provisional).

Axis Bank August 2020 futures traded at a premium of 0.90 points at 433.90 (LTP) compared with spot closing of 433.00. The numbers of contracts traded were 29,561(Provisional).

Among, Nifty calls, 11500 SP from the August month expiry was the most active call with a contraction of 0.05 million open interests. Among Nifty puts, 11000 SP from the August month expiry was the most active put with an addition of 0.25 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.19 mn) and that for Puts was at 11000 SP (3.22 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,262.20 -- Pivot Point 11,194.75 -- Support -- 11,132.70.

The Nifty Put Call Ratio (PCR) finally stood at (1.58) for August month contract. The top five scrips with highest PCR on Vedanta (1.20), Maruti Suzuki India (1.12), Jindal Steel (1.02), Tata Steel (1.00) and Torrent Pharmaceuticals (0.99).

Among most active underlying, Reliance Industries witnessed a contraction of 0.02 million units of Open Interest in the August month futures contract, followed by Muthoot Finance witnessing an addition of 1.36 million units of Open Interest in the August month contract, Bajaj Finance witnessed a contraction of 0.04 million units of Open Interest in the August month contract, ICICI Bank witnessed an addition of 3.14 million units of Open Interest in the August month contract and SBIN witnessed an addition of 4.65 million units of Open Interest in the August month future contract (Provisional).