Nifty manages to end in green zone

The local benchmark -- Nifty -- managed to end the Thursday’s session slightly in green terrain. Market made a gap-up opening, as traders took support with Commerce Secretary Anup Wadhawan’s statement that the department of commerce is proactively engaging with state governments to promote exports. He also requested state governments to extend their support to take forward the initiatives to boost country's outbound shipments. Further, market maintained its upside trend, as Governor Shaktikanta Das said that while the Reserve Bank of India's (RBI's) moratorium on repaying loans was a temporary solution in the context of COVID-19 lockdown, the resolution framework is expected to give a durable relief to borrowers facing the pandemic-related stress.

However, in late afternoon session, index trimmed its early gains and touched its intraday low point, as SBI Research in its latest report has said that disposable income growth of households fell to 0.8 times in fiscal 2019-20 as compared to an average growth of 2.3 times in the preceding six fiscals. But, the market managed to end the session with minor gains, as Indian government’s plan to connect over six lakh villages with optical fibre network is the kind of ‘generational projects’ required to build the country better in a post-COVID world as it focuses on the inclusion and leapfrogging access to information and services.

All of the NSE sectoral indices ended in green except FMCG and IT. The top gainers from the F&O segment were DLF, Century Textile and Industries and Godrej Properties. On the other hand, the top losers were Jindal Steel, Max Financial Services and Cholamandalam Investment and Finance Company. 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 2.16% and reached 18.90. The 50 share Nifty up by 9.65 points or 0.08% to settle at 11,559.25.

Nifty September 2020 futures closed at 11590.00 (LTP) on Thursday, at a premium of 30.75 points over spot closing of 11559.25, while Nifty October 2020 futures ended at 11604.00 (LTP), at a premium of 44.75 points over spot closing.  Nifty September futures saw a addition of 46,377 units, taking the total open interest (Contracts) to 1,58,483. The near month derivatives contract will expire on September 24, 2020 (Provisional).

From the most active contracts, HDFC September 2020 futures traded at a premium of 6.80 points at 1869.80 (LTP) compared with spot closing of 1863.00. The numbers of contracts traded were 36,612 (Provisional).

Reliance Industries September 2020 futures traded at a premium of 3.10 points at 2111.55 (LTP) compared with spot closing of 2108.45. The numbers of contracts traded were 36,209 (Provisional).

SBIN September 2020 futures traded at a premium of 1.25 points at 217.25 (LTP) compared with spot closing of 216.00. The numbers of contracts traded were 35,299 (Provisional).

Indusind Bank September 2020 futures traded at a premium of 1.80 points at 606.50 (LTP) compared with spot closing of 604.70. The numbers of contracts traded were 35,152 (Provisional).

ICICI Bank September 2020 futures traded at a premium of 0.90 points at 393.75 (LTP) compared with spot closing of 392.85. The numbers of contracts traded were 29,334 (Provisional).

Among, Nifty calls, 12000 SP from the September month expiry was the most active call with an addition of 4,440 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 6,605 units open interests. The maximum OI outstanding for Calls was at 12000 SP (26,275 units) and that for Puts was at 11000 SP (37,142 units). The respective Support and Resistance levels of Nifty are: Resistance 11,604.20 -- Pivot Point 11,572.40 -- Support -- 11,527.45.

The Nifty Put Call Ratio (PCR) finally stood at (1.44) for September month contract. The top five scrips with highest PCR on Vedanta (3.63), JSW Steel (1.59), United Breweries (1.45), Adani Enterprises (1.14) and Tata Motors (1.09).

Among most active underlying, Reliance Industries witnessed an addition of 10,199 units of Open Interest in the September month futures contract, followed by SBIN witnessing an addition of 5,871 units of Open Interest in the September month contract, Bharti Airtel witnessed an addition of 9,687 units of Open Interest in the September month contract, HDFC witnessed an addition of 11,826 units of Open Interest in the September month contract and Indusind Bank witnessed an addition of 2,978 units of Open Interest in the September month future contract (Provisional).