Nifty witnesses huge losses on Friday

NSE gauge -- Nifty -- witnessed huge losses on Friday, sliding below its crucial 11,350 level. Market made gap-down opening and remained lower for the whole day, as sentiments got hit with ICRA’s report that corporate revenues declined by 31 per cent in the June quarter, but profit margins decreased by a lesser degree to 3.6 per cent in the April-June period. However, some losses got trimmed in afternoon session, as traders took support with AEPC Chairman A Sakthivel’s statement that apparel exports from India will expand by 40 percent in the current financial year (FY21) with major focus on new medical textiles. He said this will take the total apparel exports up from $15.4 billion last fiscal to about $22 billion in 2020-21. At the end, index again extended losses to end sluggish trade of day with the cut of above one and half percent. Sentiments remained negative, even after Union Minister of Commerce and Industry Piyush Goyal has said that exports as well as imports are showing positive trends. He said that the exports are approaching the last year’s levels, after making a sharp dip in April this year due to pandemic.

All of the NSE sectoral indices ended in red. The top gainers from the F&O segment were Maruti Suzuki (India), Ashok Leyland and Siemens. On the other hand, the top losers were Jindal Steel, Piramal Enterprises and ICICI Prudential Life Insurance. In the index option segment, maximum OI continues to be seen in the 11,400 - 11,600 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 increased by 7.15% and reached 21.97. The 50 share Nifty down by 193.60 points or 1.68% to settle at 11,333.85.

Nifty September 2020 futures closed at 11371.65 (LTP) on Friday, at a premium of 37.80 points over spot closing of 11333.85, while Nifty October 2020 futures ended at 11389.60 (LTP), at a premium of 55.75 points over spot closing. Nifty September futures saw an addition of 12,803 units, taking the total open interest (Contracts) to 1,56,497. 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 6.70 points at 2086.00 (LTP) compared with spot closing of 2079.30. The numbers of contracts traded were 33,541 (Provisional).

ICICI Bank September 2020 futures traded at a premium of 1.45 points at 376.35 (LTP) compared with spot closing of 374.90. The numbers of contracts traded were 32,921 (Provisional).

SBIN September 2020 futures traded at a premium of 1.05 points at 208.25 (LTP) compared with spot closing of 207.20. The numbers of contracts traded were 26,231 (Provisional).

Maruti Suzuki September 2020 futures traded at a premium of 34.05 points at 7231.00 (LTP) compared with spot closing of 7196.95. The numbers of contracts traded were 26,207 (Provisional).

Axis Bank September 2020 futures traded at a premium of 2.15 points at 458.90 (LTP) compared with spot closing of 456.75. The numbers of contracts traded were 25,148 (Provisional). 

Among, Nifty calls, 11500 SP from the September month expiry was the most active call with an addition of 4,553 units open interests. Among Nifty puts, 11000 SP from the September month expiry was the most active put with an addition of 6,520 units open interests. The maximum OI outstanding for Calls was at 11500 SP (27,861 units) and that for Puts was at 11000 SP (43,695 units). The respective Support and Resistance levels of Nifty are: Resistance 11,422.72 -- Pivot Point 11,363.18 -- Support --- 11,274.32.

The Nifty Put Call Ratio (PCR) finally stood at (1.31) for September month contract. The top five scrips with highest PCR on Vedanta (1.41), MRF (1.03), Jubilant FoodWorks (1.02), JSW Steel (0.97) and Zee Entertainment Enterprises (0.85).

Among most active underlying, Reliance Industries witnessing an addition of 3,527 units of Open Interest in the September month contract, followed by Bajaj Finance witnessing a contraction of 34 units of Open Interest in the September month contract, Bharti Airtel witnessed an addition of 5,163 units of Open Interest in the September month contract, Maruti Suzuki India witnessing an addition of 1,030 units of Open Interest in the September month contract and ICICI Bank witnessed an addition of 1,484 units of Open Interest in the September month future contract (Provisional).