S&P CNX -- Nifty -- continued its northward journey for second consecutive session with gains of above half a percent. Market started the day with marginal gains, as Chief Economic Advisor Krishnamurthy Subramanian exuded confidence that the country would be back to a high growth path through reforms announced by the government, after overcoming the COVID-19 pandemic. Market maintained its gains in green zone even after government data showing that contracting for the sixth straight month, India's exports slipped 12.66% to $22.7 billion in August, on account of decline in the shipments of petroleum, leather, engineering goods and gems and jewellery items. The trade deficit for August this year was estimated at $6.77 billion, against $4.8 billion in July 2020 and $13.86 billion in August 2019.
During late afternoon session, index extended its upside, as traders found support with RBI Governor Shaktikanta Das’s statement that India has seen some stabilisation in economic activity in the ongoing fiscal’s second quarter. He added that the economic recovery will be gradual, but some of the high-frequency indicators such as agriculture activity, manufacturing PMI, and private estimates of unemployment point to some stabilisation of economic activity in the second quarter. The RBI Governor also mentioned that the contraction in several other sectors is also simultaneously easing. In last lap of trading market touched intraday high point and closed the session above its crucial 11600 mark.
All the NSE sectoral indices ended in green except PSU Bank and Media.The top gainers from the F&O segment were DLF, Ramco Cements and Dr. Reddy's laboratories. On the other hand, the top losers were SAIL, Sun TV Network and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 11,900 - 12,100 calls and 10,900 - 11,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.73% and reached 19.62. The 50 share Nifty up by 82.75 points or 0.72% to settle at 11,604.55.
Nifty September 2020 futures closed at 11611.60 (LTP) on Wednesday, at a premium of 7.05 points over spot closing of 11604.55, while Nifty October 2020 futures ended at 11628.90 (LTP), at a premium of 24.35 points over spot closing. Nifty September futures saw an addition of 12,127 units, taking the total open interest (Contracts) to 1,62,916. 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 7.85 points at 2332.75 (LTP)compared with spot closing of 2324.90. The numbers of contracts traded were 46,282 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 1.50 points at 375.75 (LTP) compared with spot closing of 374.25. The numbers of contracts traded were 26,164 (Provisional).
Bajaj Finance September 2020 futures traded at a premium of 12.95 points at 3525.25 (LTP) compared with spot closing of 3512.30. The numbers of contracts traded were 22,654 (Provisional).
SBIN September 2020 futures traded at a premium of 0.80 points at 198.80 (LTP) compared with spot closing of 198.00. The numbers of contracts traded were 21,891 (Provisional).
Axis Bank September 2020 futures traded at a premium of 1.75 points at 446.70 (LTP) compared with spot closing of 444.95. The numbers of contracts traded were 21,692 (Provisional).
Among, Nifty calls, 11600 SP from the September month expiry was the most active call with an addition of 3,911 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 15,426 units open interests. The maximum OI outstanding for Calls was at 12000 SP (35,498 units) and that for Puts was at 11500 SP (43,870 units). The respective Support and Resistance levels of Nifty are: Resistance 11,642.85 -- Pivot Point 11,579.80 -- Support -- 11,541.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.33) for September month contract. The top five scrips with highest PCR on Ashok Leyland (1.15), Vedanta (1.14), JSW Steel (1.06), Jubilant FoodWorks (1.05) and Wipro (0.93).
Among most active underlying, Reliance Industries witnessed an addition of 2,853 units of Open Interest in the September month futures contract followed by Dr. Reddy's laboratories witnessing an addition of 418 units of Open Interest in the September month contract, Bajaj Finance witnessing a contraction of 234 units of Open Interest in the September month contract, Infosys witnessing an addition of 2,538 units of Open Interest in the September month contract, and Aurobindo Pharma witnessed an addition of 533 units of Open Interest in the September month future contract (Provisional).
