Nifty ends above 11,500 mark

Nifty gave powerful performance by surging over half a percent on Tuesday, surpassing its psychological level of 11,500. Market made positive start, as Reserve Bank of India’s (RBI) report showed that bank credit grew 5.49% to Rs 102.11 lakh crore, while deposits increased 10.92% to Rs 141.76 lakh crore in the fortnight ended August 28. In late morning deals, market trimmed gains, as S&P Global Ratings cut India's FY21 GDP forecast to -9 percent from -5 percent as it believes that rising COVID-19 cases in the country will keep private spending and investment lower for longer.

However, in the second half of the session, market extended its gains, taking support with Minister of State for Finance Anurag Singh Thakur’s statement that the lowering of corporate tax rate has made India a globally competitive and favoured destination for investment and the impact of this landmark reform will be felt in the coming years. The government last year slashed the base corporation tax rate to 22 percent from 30 per cent, leading to revenue implication of Rs 1.45 lakh crore.

Traders were seen piling up positions in Pharma, Private Bank and Bank, while selling was witnessed in Realty, Media and FMCG. The top gainers from the F&O segment were Indusind Bank, Motherson Sumi Systems and Ashok Leyland. On the other hand, the top losers were PVR, National Aluminium Company and Indiabulls Housing Finance. 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 3.75% and reached 20.40. The 50 share Nifty up by 81.75 points or 0.71% to settle at 11,521.80.

Nifty September 2020 futures closed at 11534.00 (LTP) on Tuesday, at a premium of 12.20 points over spot closing of 11521.80, while Nifty October 2020 futures ended at 11548.00 (LTP), at a premium of 26.20 points over spot closing. Nifty September futures saw an addition of 5,786 units, taking the total open interest (Contracts) to 1,54,441. The near month derivatives contract will expire on September 24, 2020 (Provisional).

From the most active contracts, Bharti Airtel September 2020 futures traded at a premium of 1.25 points at 486.30 (LTP) compared with spot closing of 485.05. The numbers of contracts traded were 38,668 (Provisional).

Reliance Industries September 2020 futures traded flat 2324.00 (LTP) with spot closing of 2324.00. The numbers of contracts traded were 33,286 (Provisional).

TCS September 2020 futures traded at a premium of 7.20 points at 2496.20 (LTP) compared with spot closing of 2489.00. The numbers of contracts traded were 27,328 (Provisional).

ICICI Bank September 2020 futures traded at a premium of 0.80 points at 372.50 (LTP) compared with spot closing of 371.70. The numbers of contracts traded were 24,392 (Provisional).

SBIN September 2020 futures traded at a premium of 0.80 points at 200.60 (LTP) compared with spot closing of 199.80. The numbers of contracts traded were 22,880 (Provisional).

Among, Nifty calls, 11500 SP from the July month expiry was the most active call with a contraction of 1,586 units open interests. Among Nifty puts, 11500 SP from the July month expiry was the most active put with an addition of 2,741 units open interests. The maximum OI outstanding for Calls was at 12000 SP (32,178 units) and that for Puts was at 11000 SP (36,208 units). The respective Support and Resistance levels of Nifty are: Resistance 11,557.75 -- Pivot Point 11,500.00 -- Support -- 11,464.05.

The Nifty Put Call Ratio (PCR) finally stood at (1.35) for September month contract. The top five scrips with highest PCR on Vedanta (1.10), Ashok Leyland (1.05), JSW Steel (1.03), Amara Raja Batteries (1.00) and MRF (0.94)

Among most active underlying, Reliance Industries witnessed a contraction of 108 units of Open Interest in the September month futures contract, followed by Bharti Airtel witnessed an addition of 1,968 units of Open Interest in the September month contract, TCS witnessing an addition of 3,142 units of Open Interest in the September month contract, Bajaj Finance witnessing a contraction of 1,245 units of Open Interest in the September month contract and Infosys witnessed an addition of 1,099 units of Open Interest in the September month future contract (Provisional).