Nifty ends in green terrain; log gains over 50 points

Indian equity benchmark -- Nifty -- ended in green terrain on Tuesday, gaining over 50 points. After a positive start of the day, index remained higher for the whole day, after Union Minister Nitin Gadkari said the government is working on the idea of a land bank and a social microfinance institution to help people run small shops and businesses. Sentiments remained positive, with Commerce and Industry Minister Piyush Goyal’s statement that India's balance of payments this year is going to be very, very strong on the back of significant improvement in exports and a fall in imports.

Market trimmed some their gains in late morning deals, amid ratings agency ICRA’s report that the coronavirus pandemic will significantly impact performance of companies and it is likely to be severe and prolonged for select sectors, especially aviation, hospitality and retail. But, index again added gains in noon deals, taking support with Food and Public Distribution Secretary Sudhanshu Pandey’s statement that the country's economy is reviving from the impact of COVID-19 pandemic and this is visible from the performance of sectors such as FMCG and agriculture.

All of the NSE sectoral indices ended in green except Pharma, IT and Realty. The top gainers from the F&O segment were IDFC First Bank, Indiabulls Housing Finance and Zee Entertainment Enterprises. On the other hand, the top losers were Torrent Pharmaceuticals, Shree Cement and Vodafone Idea. 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 1.15 and reached 21.36. The 50 share Nifty up by 52.35 points or 0.46% to settle at 11,322.50.

Nifty August 2020 futures closed at 11348.00 (LTP) on Tuesday, at a premium of 25.50 points over spot closing of 11322.50, while Nifty September 2020 futures ended at 11355.15 (LTP), at a premium of 32.65 points over spot closing. Nifty August futures saw an addition of 0.00 million (mn) units, taking the total outstanding open interest (OI) to 0.00 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 10.15 points at 2143.00 (LTP) compared with spot closing of 2132.85. The numbers of contracts traded were 58,704 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 1.50 points at 367.95 (LTP) compared with spot closing of 366.45. The numbers of contracts traded were 49,505 (Provisional).

Axis Bank August 2020 futures traded at a premium of 2.45 points at 450.45 (LTP) compared with spot closing of 448.00. The numbers of contracts traded were 32,109 (Provisional).

Bajaj Finance August 2020 futures traded at a discount of 9.85 points at 3444.10 (LTP) compared with spot closing of 3453.95. The numbers of contracts traded were 24,016 (Provisional).

SBIN August 2020 futures traded at a premium of 1.15 points at 196.60 (LTP) compared with spot closing of 195.45. The numbers of contracts traded were 23,557 (Provisional).

Among, Nifty calls, 11500 SP from the August month expiry was the most active call with an addition of 0.03 million open interests. Among Nifty puts, 11000 SP from the August month expiry was the most active put with an addition of 0.39 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.13 mn) and that for Puts was at 11000 SP (3.38 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,364.35 -- Pivot Point 11,331.75 -- Support -- 11,289.90.

The Nifty Put Call Ratio (PCR) finally stood at (1.55) for August month contract. The top five scrips with highest PCR on JSW Steel (1.37), Divi’s Laboratories (1.16), Tata Motors (1.11), Vedanta (1.10) and Tata Steel (1.09)

Among most active underlying, Reliance Industries witnessed an addition of 1.51 million units of Open Interest in the August month futures contract, followed by ICICI Bank witnessing an addition of 2.97 million units of Open Interest in the August month contract, Bajaj Finance witnessed an addition of 0.06 million units of Open Interest in the August month contract, ITC witnessed an addition of 6.78 million units of Open Interest in the August month contract and Titan Company witnessed an addition of 0.19 million units of Open Interest in the August month future contract (Provisional).