Late buying lifts Nifty above 11,500 mark

In highly volatile trading session, Indian equity benchmark -- Nifty -- finished the day above its psychological level of 11500 amid buying in last leg of trade. Market started day on positive note with CII-IBA survey report stating that the financial conditions are looking up in the current quarter (Q2FY21) due to policy decisions and steps the government and Reserve Bank of India have taken to support economy. However, index soon turned volatile, as State Bank of India's (SBI) research report – Ecowrap has said that India’s real Gross domestic product (GDP) is expected to shrink by 10.9 percent in the current fiscal year (FY21). It had earlier estimated real GDP at (-) 6.8 percent for FY21.

During the day, market altered between green and red zone, as traders were cautious with Moody's Investors Service stating that India will be among the large emerging market sovereigns to have highest debt burden by 2021. It stated that the coronavirus pandemic-induced deterioration in growth and fiscal dynamics will leave most large emerging market sovereigns with higher debt burdens over the next few years. However, in the last lap of trading, market jumped to trade higher and ended the session with the gains of above half a percent. 

All of the NSE sectoral indices ended in green except PSU Bank and Financial Services. The top gainers from the F&O segment were Vodafone Idea, Escorts and UBL. On the other hand, the top losers were Bajaj Auto, Shriram Transport Finance and Hero MotoCorp. 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 3.99% and reached 20.93. The 50 share Nifty up by 64.75 points or 0.56% to settle at 11,535.00.

Nifty September 2020 futures closed at 11565.80 (LTP) on Wednesday, at a premium of 30.80 points over spot closing of 11535.00, while Nifty October 2020 futures ended at 11582.70 (LTP), at a premium of 47.70 points over spot closing. Nifty September futures saw an addition of 9,501 units, taking the total open interest (Contracts) to 1,44,772. The near month derivatives contract will expire on September 24, 2020 (Provisional).

From the most active contracts, Reliance Industries September 2020 futures traded at a premium of 11.20 points at 2139.95 (LTP) compared with spot closing of 2128.75. The numbers of contracts traded were 35,639 (Provisional).

Bharti Airtel September 2020 futures traded at a premium of 2.05 points at 552.95 (LTP) compared with spot closing of 550.90. The numbers of contracts traded were 29,128 (Provisional).

ICICI Bank September 2020 futures traded at a premium of 1.80 points at 395.00 (LTP) compared with spot closing of 393.20. The numbers of contracts traded were 26,047 (Provisional).

Axis Bank September 2020 futures traded at a premium of 1.60 points at 487.20 (LTP) compared with spot closing of 485.60. The numbers of contracts traded were 22,749 (Provisional).

SBIN September 2020 futures traded at a premium of 0.40 points at 216.95 (LTP) compared with spot closing of 216.55. The numbers of contracts traded were 22,581 (Provisional).

Among, Nifty calls, 11500 SP from the September month expiry was the most active call with an addition of 1,466 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 1,678 units open interests. The maximum OI outstanding for Calls was at 12000 SP (27,057 units) and that for Puts was at 11000 SP (36,818 units). The respective Support and Resistance levels of Nifty are: Resistance 11,583.03 -- Pivot Point 11,506.72 -- Support -- 11,458.68. 

The Nifty Put Call Ratio (PCR) finally stood at (1.30) for September month contract. The top five scrips with highest PCR on Vedanta (1.60), JSW Steel (1.12), Jubilant FoodWorks (0.97), Tata Motors (0.96) and Zee Entertainment Enterprises (0.87).

Among most active underlying, Reliance Industries witnessing an addition of 2,658 units of Open Interest in the September month contract, followed by Bharti Airtel witnessing an addition of 1,467 units of Open Interest in the September month contract, Bajaj Finance witnessed an addition of 511 units of Open Interest in the September month contract, Escorts witnessed an addition of 1,002 units of Open Interest in the September month contract and SBIN witnessed an addition of 1,394 units of Open Interest in the September month future contract (Provisional).