Nifty ends with gains of over 1% on Tuesday

Indian equity benchmark -- Nifty -- ended with gains of over 1% on Tuesday. Index made a positive start and remained higher till the end of the session, after the government relaxed norms for Partial Credit Guarantee Scheme (PCGS) for purchase of bonds and commercial papers by public sector banks and extended its period by three months, with a view to provide additional liquidity to crisis-ridden NBFCs and housing finance companies (HFCs). Some support come with private report that consumer sentiment has started to get a little better, even though the COVID-19 pandemic has continued to worsen. It also said cautious living is emerging as the new theme, where consumers beginning to feel that it is time that they need to resume their activities albeit with a lot of caution. Market added more gains in the last hour of trade, amid reports that Finance Minister Nirmala Sitharaman held a virtual bilateral meeting with United Arab Emirates (UAE) Minister of State for Financial Affairs Obaid Al Tayer and urged the Middle Eastern nation to participate in India's ambitious Rs 111 lakh crore National Infrastructure Pipeline. About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with projected investment of Rs 111 lakh crore during 2020-25.

All of the NSE sectoral indices ended in green except Pharma. The top gainers from the F&O segment Were Ashok Leyland, Cholamandalam Investment and Finance Company And Adani Enterprises. On the other hand, the top losers were Lupin, Torrent Power and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,600 calls and 10,900 - 11,100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.16% and reached 20.42. The 50 share Nifty up by 138.25 points or 1.23% to settle at 11,385.35.

Nifty August 2020 futures closed at 11405.40 (LTP) on Tuesday, at a premium of 20.05 points over spot closing of 11385.35, while Nifty September 2020 futures ended at 11418.75 (LTP), at a premium of 33.40 points over spot closing. Nifty August futures saw an addition of 0.80 million (mn) units, taking the total outstanding open interest (OI) to 10.85 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 8.80 points at 2129 (LTP) compared with spot closing of 2120.20. The numbers of contracts traded were 35,467 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 1.30 points at 370.80 (LTP) compared with spot closing of 369.50. The numbers of contracts traded were 29,613 (Provisional).

SBIN August 2020 futures traded at a premium of 0.75 points at 195.85 (LTP) compared with spot closing of 195.10. The numbers of contracts traded were 26,255 (Provisional).

Bajaj Finance August 2020 futures traded at a premium of 6.35 points at 3428.30 (LTP) compared with spot closing of 3421.95. The numbers of contracts traded were 24,379 (Provisional).

Zee Entertainment Enterprises August 2020 futures traded at a premium of 0.30 points at 175.00 (LTP) compared with spot closing of 174.70. The numbers of contracts traded were 23,876 (Provisional).

Among, Nifty calls, 11500 SP from the August month expiry was the most active call with an addition of 0.12 million open interests. Among Nifty puts, 11200 SP from the August month expiry was the most active put with an addition of 0.50 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.26 mn) and that for Puts was at 11000 SP (3.70 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,440.32 -- Pivot Point 11,346.73 --- Support -- 11,291.77.

The Nifty Put Call Ratio (PCR) finally stood at (1.60) for August month contract. The top five scrips with highest PCR on JSW Steel (1.63), Motherson Sumi Systems (1.56), Ashok Leyland (1.53), Maruti Suzuki India (1.46) and Hindalco Industries (1.26).

Among most active underlying, Reliance Industries witnessed an addition of 0.07 million units of Open Interest in the August month futures contract, followed by SBIN witnessing a contraction of 0.42 million units of Open Interest in the August month contract, Bajaj Finance witnessed a contraction of 0.01 million units of Open Interest in the August month contract, Maruti Suzuki India witnessed an addition of 0.13 million units of Open Interest in the August month contract and Tata Steel witnessed an addition of 1.34 million units of Open Interest in the August month future contract (Provisional).