After one day halt, local benchmark -- Nifty -- ended the trade in green zone with the gains of above half a percent. Earlier, market made a cautious start and soon turned volatile with report that India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9% as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. However, sentiments turned positive and market started trading in fine fettle, as Reserve Bank of India (RBI) announced a host of steps, including term repo operations totalling Rs 1 lakh crore in mid-September in order to ease pressure on the liquidity and maintain congenial financial conditions with a view to ensuring sustainable recovery of economic growth.
In afternoon trade, market gained traction to trade above 11500 mark, as India’s Manufacturing Purchasing Managers’ Index (PMI) for August has come in at 52, compared to 46 in July, signaling growth and rebound in production volumes for the first time in five months. For the first time since March, output expanded in the Indian manufacturing sector in August. Finally, Nifty finished the trade above its crucial 11450 mark, despite ministry of Commerce and Industry in its latest data has showed that the growth of eight core infrastructure industries have contracted by 9.6 percent in July 2020 as compared to same period of last year, due to decline mostly in production of steel, refinery products and cement.
All of the NSE sectoral indices ended in green except IT, PSU Bank and Private Bank. The top gainers from the F&O segment were Biocon, Bharti Airtel and PVR. On the other hand, the top losers were Vodafone Idea, Bharti Infratel and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 11,900 - 12,100 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 5.06% and reached 21.80. The 50 share Nifty up by 82.75 points or 0.73% to settle at 11,470.25.
Nifty September 2020 futures closed at 11528.00 (LTP) on Tuesday, at a premium of 57.75 points over spot closing of 11470.25, while Nifty October 2020 futures ended at 11545.00 (LTP), at a premium of 74.75 points over spot closing. Nifty September futures saw a contraction of 5,280 units, taking the total open interest (Contracts) to 1,44,182 mn units. The near month derivatives contract will expire on September 24, 2020 (Provisional).
From the most active contracts, Bharti Airtel September 2020 futures traded at a premium of 1.65 points at 551.25 (LTP) compared with spot closing of 549.60. The numbers of contracts traded were 74,670 (Provisional).
Reliance Industries September 2020 futures traded at a premium of 12.20 points at 2103.60 (LTP) compared with spot closing of 2091.40. The numbers of contracts traded were 46,599 (Provisional).
Indusind Bank September 2020 futures traded at a premium of 3.40 points at 633.85 (LTP) compared with spot closing of 630.45. The numbers of contracts traded were 36,945 (Provisional).
SBIN September 2020 futures traded at a premium of 0.45 points at 219.20 (LTP) compared with spot closing of 218.75. The numbers of contracts traded were 36,104 (Provisional).
Bajaj Finance September 2020 futures traded at a premium of 7.95 points at 3645.00 (LTP) compared with spot closing of 3637.05. The numbers of contracts traded were 33,516 (Provisional).
Among, Nifty calls, 11500 SP from the September month expiry was the most active call with a contraction of 653 units open interests. Among Nifty puts, 11000 SP from the September month expiry was the most active put with an addition of 3,006 units open interests. The maximum OI outstanding for Calls was at 12000 SP (26,073 units) and that for Puts was at 11000 SP (34,915 units). The respective Support and Resistance levels of Nifty are: Resistance 11,560.23 -- Pivot Point 11,463.57 -- Support -- 11,373.58.
The Nifty Put Call Ratio (PCR) finally stood at (1.33) for September month contract. The top five scrips with highest PCR on Vedanta (1.58), JSW Steel (1.19), UBL (0.95), Ashok Leyland (0.93) and Bajaj Finance (0.89).
Among most active underlying, Bharti Airtel witnessing an addition of 18 units of Open Interest in the September month contract, followed by Reliance Industries witnessing an addition of 2,013 units of Open Interest in the September month contract, Bajaj Finance witnessed a contraction of 982 units of Open Interest in the September month contract, SBIN witnessed a contraction of 364 units of Open Interest in the September month contract and Axis Bank witnessed an addition of 3,433 units of Open Interest in the September month future contract (Provisional).
