Nifty ends near intraday high point

Local benchmark--Nifty--closed the volatile day of trade with the gains of above half a percent. The day began on a positive note, after Moody's Investors Service said India, China and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020, and retained its projection of 3.1 per cent growth contraction for India in 2020. But soon, market turned volatile, as Reserve Bank of India (RBI) in its annual report for 2019-20 said that the Country's headline inflation is expected to firm up further in the coming months largely due to disruptions in food and manufactured items' supply chains.

During the trading day, index altered between green and red zone, as traders were cautious with rating agency ICRA’s report that the economy is expected to contract by 25 per cent each in the first quarter of FY'21 both in terms of GDP (gross domestic product) as well GVA (gross value added). However, in last leg of trade, market jumped to touch intraday high point after Finance Minister Nirmala Sitharaman said that the government is open to further tweaking the Rs 3 lakh crore credit guarantee scheme for providing collateral-free loans to small businesses. Finally, Nifty ended the session near intraday high point.

All of the NSE sectoral indices ended in green except FMCG and Pharma. The top gainers from the F&O segment were Tata Motors, Hero MotoCorp and RBL Bank. On the other hand, the top losers were Adani Enterprises, Bharti Airtel and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,600 calls and 11,400 - 11,600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.36% and reached 19.30. The 50 share Nifty up by 77.35 points or 0.67% to settle at 11,549.60.

Nifty August 2020 futures closed at 11553.05 (LTP) on Wednesday, at a premium of 3.45 points over spot closing of 11549.60, while Nifty September 2020 futures ended at 11570.85 (LTP), at a premium of 21.25 points over spot closing. Nifty August futures saw an addition of 17,565 units, taking the total open interest (Contracts) to 1,05,010. 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 1.05 points at 2135.80 (LTP) compared with spot closing of 2134.75. The numbers of contracts traded were 57,983 (Provisional).

ICICI Bank August 2020 futures traded at a premium of 0.90 points at 390.70 (LTP) compared with spot closing of 389.80. The numbers of contracts traded were 31,984 (Provisional).

SBIN August 2020 futures traded at a discount of 0.30 points at 209.60 (LTP) compared with spot closing of 209.90. The numbers of contracts traded were 24,304 (Provisional).

HDFC August 2020 futures traded at a premium of 1.20 points at 1811.20 (LTP) compared with spot closing of 1810.00. The numbers of contracts traded were 23,094 (Provisional).

Axis Bank August 2020 futures traded at a premium of 0.50 points at 463.50 (LTP) compared with spot closing of 463.00. The numbers of contracts traded were 22,945 (Provisional).

Among, Nifty calls, 11500 SP from the August month expiry was the most active call with a contraction of 7,253 units open interests. Among Nifty puts, 11500 SP from the August month expiry was the most active put with an addition of 35,152 units open interests. The maximum OI outstanding for Calls was at 11500 SP (47,521 units) and that for Puts was at 11500 SP (55,654 units). The respective Support and Resistance levels of Nifty are: Resistance 11,586.95 -- Pivot Point 11,524.40 -- Support -- 11,487.05.

The Nifty Put Call Ratio (PCR) finally stood at (1.54) for August month contract. The top five scrips with highest PCR on JSW Steel (1.82), Maruti Suzuki India (1.64), Tata Motors (1.58), Kotak Mahindra Bank (1.56) and Ashok Leyland (1.51).

Among most active underlying, Reliance Industries witnessed an addition of 2,249 units of Open Interest in the August month futures contract, followed by Bharti Airtel witnessing an addition of 2,908 units of Open Interest in the August month contract, Bajaj Finance witnessed a contraction of 560 units of Open Interest in the August month contract, ICICI Bank witnessed an addition of 5,354 units of Open Interest in the August month contract and Tata Motors witnessed a contraction of 526 units of Open Interest in the August month future contract (Provisional).