NSE gauge -- Nifty50 -- resumed its southward journey on Thursday with the losses of above half a percent. Key index begun day on a somber note, as the Organisation for Economic Co-operation and Development (OECD) in its Interim Economic Outlook report forecast a deeper contraction of 10.2% for India in the current fiscal, surpassing its June estimate of -7.3% in the event of a second wave of infections. Market further extended losses in the afternoon deals, as sentiment on the street weakened with a report that total tax collection of the Centre, including advance tax collection for the second quarter, fell 22.5% to Rs 2,53,532.3 crore till September 15 of the current fiscal as compared to the year-ago period.
Trades failed to take some solace with report that the government is in the process of bringing out a strategy paper on boosting industrial growth which will be a road map for all businesses in the country. Market continued its weak trade till the end of the session with private report stated that India’s GDP is likely to contract by 8.6 percent in FY21 as against its earlier prediction of 5.8 percent, citing factors including the modest government response to the crisis for its estimate. Finally, Nifty ended sluggish trade of day below 11550 mark.
Most of the NSE sectoral indices ended in red except Pharma, IT and Media. The top gainers from the F&O segment were Apollo Hospitals Enterprise, Apollo Tyres and Dr. Reddy's laboratories. On the other hand, the top losers were DLF, Aurobindo Pharma and Hindalco Industries. 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 increased by 2.12% and reached 20.08. The 50 share Nifty down by 88.45 points or 0.76% to settle at 11,516.10.Nifty September 2020 futures closed at 11528.20 (LTP) on Thursday, at a premium of 12.10 points over spot closing of 11516.10, while Nifty October 2020 futures ended at 11545.80(LTP), at a premium of 29.70 points over spot closing. Nifty September futures saw an addition of 5,582 units, taking the total open interest (Contracts) to 1,63,051. The near month derivatives contract will expire on September 24, 2020 (Provisional).
From the most active contracts, Dr. Reddy's Laboratories September 2020 futures traded at a premium of 4.00 points at 4827.00 (LTP) compared with spot closing of 4823.00. The numbers of contracts traded were 36,283 (Provisional).
Reliance Industries September 2020 futures traded at a premium of 6.70 points at 2303.55 (LTP) compared with spot closing of 2296.85. The numbers of contracts traded were 31,961 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 1.30 points at 369.90 (LTP) compared with spot closing of 368.60. The numbers of contracts traded were 25,381 (Provisional).
Axis Bank September 2020 futures traded at a premium of 0.70 points at 442.60 (LTP) compared with spot closing of 441.90. The numbers of contracts traded were 18,077 (Provisional).
HDFC Bank September 2020 futures traded at a discount of 0.65 points at 1085.35 (LTP) compared with spot closing of 1086.00. The numbers of contracts traded were 17,798 (Provisional).
Among, Nifty calls, 11600 SP from the September month expiry was the most active call with an addition of 11,435 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 3,533 units open interests. The maximum OI outstanding for Calls was at 12000 SP (45,157 units) and that for Puts was at 11500 SP (46,450 units). The respective Support and Resistance levels of Nifty are: Resistance 11,569.37 -- Pivot Point 11,533.93 -- Support -- 11,480.67.
The Nifty Put Call Ratio (PCR) finally stood at (1.09) for September month contract. The top five scrips with highest PCR on Vedanta (1.16), Jubilant FoodWorks (1.11), Amara Raja Batteries (1.07), Ashok Leyland (1.02) and JSW Steel (0.95).
Among most active underlying, Dr. Reddy's laboratories witnessing an addition of 1,322 units of Open Interest in the September month contract followed by Reliance Industries witnessed an addition of 3,291 units of Open Interest in the September month futures contract, Infosys witnessing an addition of 1,774 units of Open Interest in the September month contract, HCL Technologies witnessed an addition of 44 units of Open Interest in the September month future contract and Bharti Airtel witnessed an addition of 1,818 units of Open Interest in the September month future contract (Provisional).
