Nifty ends on strong note; surpasses 11,600 mark

Nifty gave powerful performance by surging over half a percent on Friday, surpassing its psychological level of 11,600. Market made a positive start as RBI Governor Shaktikanta Das appreciated the government’s response to the COVID-19 crisis as being fiscally very prudent and very calibrated.  He said ‘I cannot speak for the government. But I just want to say that in the central bank, as observers of what is happening in the country in the fiscal policy, I think the government’s response has been very prudent and very calibrated.’

Market extended its upside to trade above 11650 mark even after Finance Minister Nirmala Sitharaman after the 41st meeting of the GST Council said the economy is facing an extraordinary Act of God situation, which may result in economic contraction. The Centre placed before the GST Council two options for borrowing by states to meet the shortfall in GST revenues, pegged at Rs 2.35 lakh crore in the current fiscal. Index maintained its gaining monument till the end of the session with Commerce and Industry Minister Piyush Goyal’s statement that business communities of India and ASEAN (Association of Southeast Asian Nations) should work to resolve their differences, work to create a more valuable and trusted regional value chains, remove the non-tariff barriers on both sides, ensure sanctity of rules of origin, and open markets to expand two-way trade.

All of the NSE sectoral indices ended in green except Auto, Metal and FMCG. The top gainers from the F&O segment were Vodafone Idea, IndusInd Bank and NMDC. On the other hand, the top losers were JSW Steel, Ashok Leyland 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 3.44% and reached 18.25. The 50 share Nifty up by 88.35 points or 0.76% to settle at 11,647.60.

Nifty September 2020 futures closed at 11683.00 (LTP) on Friday, at a premium of 35.40 points over spot closing of 11647.60, while Nifty October 2020 futures ended at 11697.95 (LTP), at a premium of 50.35 points over spot closing. Nifty September futures saw an addition of 15,593 units, taking the total open interest (Contracts) to 1,71,879. The near month derivatives contract will expire on September 24, 2020 (Provisional).

From the most active contracts, ICICI Bank September 2020 futures traded at a premium of 0.90 points at 410.35 (LTP) compared with spot closing of 409.45. The numbers of contracts traded were 64,948 (Provisional).

Axis Bank September 2020 futures traded at a premium of 2.70 points at 513.00 (LTP) compared with spot closing of 510.30. The numbers of contracts traded were 46,483 (Provisional).

Indusind Bank September 2020 futures traded at a premium of 0.85 points at 679.90 (LTP) compared with spot closing of 679.05. The numbers of contracts traded were 40,966 (Provisional).

SBIN September 2020 futures traded at a premium of 0.40 points at 225.80 (LTP) compared with spot closing of 225.40. The numbers of contracts traded were 40,596 (Provisional).

HDFC Bank September 2020 futures traded at a premium of 1.00 points at 1118.45 (LTP) compared with spot closing of 1117.45. The numbers of contracts traded were 40,236 (Provisional).

Among, Nifty calls, 12000 SP from the September month expiry was the most active call with an addition of 4,232 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 2,684 units open interests. The maximum OI outstanding for Calls was at 12000 SP (29,397 units) and that for Puts was at 11000 SP (47,575 units). The respective Support and Resistance levels of Nifty are: Resistance 11,692.63 -- Pivot Point 11,641.02 -- Support -- 11,595.98. 

The Nifty Put Call Ratio (PCR) finally stood at (1.49) for September month contract. The top five scrips with highest PCR on Vedanta (1.91), IndusInd Bank (1.34), JSW Steel (1.31), NMDC (1.19) and Ashok Leyland (1.17).

Among most active underlying, Reliance Industries witnessed an addition of 2,750 units of Open Interest in the September month futures contract, followed by ICICI Bank witnessing an addition of 3,647 units of Open Interest in the September month contract, Axis Bank witnessed an addition of 3,457 units of Open Interest in the September month contract, SBIN witnessed an addition of 1,593 units of Open Interest in the September month contract and HDFC Bank witnessed an addition of 4,612 units of Open Interest in the September month future contract (Provisional).