Nifty wipes out all gains; ends below 11450 mark

After trading fine fettle most of the day, S&P CNX Nifty wiped-off early gains to end Monday’s session in red zone. Market made positive start, as the finance ministry said banks have sanctioned loans worth over Rs 1.63 lakh crore to more than 42 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. Further, index extended its upside, as the Union Ministry of Finance informed that an amount of Rs 30,000 crore Special Liquidity Scheme has been progressed for non-banking, housing finance companies and Monetary Financial Institutions (MFI) as part of the Atmanirbhar Bharat package. According to the Finance Ministry, 37 proposals involving Rs 10,590 crore have been approved as on September 11. While six applications seeking financing of Rs 783.5 crore are under process.

However, in late afternoon session market wiped out all its initial gains to slipped into negative territory, India’s inflation based on wholesale price index (WPI) surged 0.16% in the month of August, 2020 (over August, 2019) as compared to 1.17% during the corresponding month of the previous year. Traders were also cautious after domestic rating agency CARE Ratings has said India’s Gross Domestic Product (GDP) is likely to see a sharper contraction of 8-8.2 percent in the current financial year (FY21) under the assumption of there being no fiscal stimulus from the government. Finally, Nifty ended the trade below the psychological 11450 mark.

Most of the NSE sectoral indices ended in red except Auto, IT and Media. The top gainers from the F&O segment were HCL Technologies, Ashok Leyland and Apollo Tyres. On the other hand, the top losers were Indiabulls Housing Finance, Bandhan Bank and Bharti Airtel. 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 3.42% and reached 21.42. The 50 share Nifty down by 24.40 points or 0.21% to settle at 11,440.05.

Nifty September 2020 futures closed at 11432.80 (LTP)  on Monday, at a discount of 7.25 points over spot closing of 11440.05, while Nifty October 2020 futures ended at 11447.70 (LTP), at a premium of 7.65 points over spot closing.  Nifty September futures saw an addition of 12,532 units, taking the total open interest (contracts) to 1,55,192 . 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 5.55 points at 2299.00 (LTP) compared with spot closing of 2293.45. The numbers of contracts traded were 52,709 (Provisional).

Bharti Airtel September 2020 futures traded at a premium of 2.85 points at 475.95 (LTP) compared with spot closing of 473.10. The numbers of contracts traded were 40,490 (Provisional).

TCS September 2020 futures traded at a premium of 6.30 points at 2495.50 (LTP) compared with spot closing of 2489.20. The numbers of contracts traded were 32,029 (Provisional).

SBIN September 2020 futures traded at a premium of 0.65 points at 198.55 (LTP) compared with spot closing of 197.90. The numbers of contracts traded were 29,952 (Provisional).

HCL Technologies September 2020 futures traded at a discount of 1.85 points at 794.10 (LTP) compared with spot closing of 795.95. The numbers of contracts traded were 28,001 (Provisional).

Among, Nifty calls, 11500 SP from the September month expiry was the most active call with an addition of 1,381 units open interests. Among Nifty puts, 11400 SP from the September month expiry was the most active put with an addition of 4,124 units open interests. The maximum OI outstanding for Calls was at 11500 SP (29,409 units) and that for Puts was at 11000 SP (35,823 units). The respective Support and Resistance levels of Nifty are: Resistance 11,544.78 -- Pivot Point 11,464.17 -- Support -- 11,359.43.

The Nifty Put Call Ratio (PCR) finally stood at (1.37) for September month contract. The top five scrips with highest PCR on Amara Raja Batteries (1.10), JSW Steel (1.05), Vedanta (1.03), MRF (0.98) and HCL Technologies (0.93).

Among most active underlying, Reliance Industries witnessed a contraction of 58 units of Open Interest in the September month futures contract, Bharti Airtel witnessed an addition of 7,096 units of Open Interest in the September month future contract followed by HCL Technologies witnessing an addition of 1,975 units of Open Interest in the September month contract, Infosys witnessed an addition of 2,859 units of Open Interest in the September month contract and TCS witnessed an addition of 5,278 units of Open Interest in the September month future contract (Provisional).