Wiping out all its initial gains, S&P CNX Nifty ended the session in red with minor losses on Friday. Market made positive start with report that the Reserve Bank of India (RBI) will purchase government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore on September 24, 2020. Index continued to trade in green zone, as investment through participatory notes (P notes) in the domestic capital market surged to over Rs 74,000 crore till August end, making it the highest level in 10 months. Traders took support amid reports that the Employees' State Insurance Corporation (ESIC) subscribers who lost their job due to the COVID 19 situation can claim unemployment relief of 50 per cent of wages under the Atal Bimit Kalyan Yojana. The ESIC has issued instructions for submission of claims by the affected workers to claim relief under recently expanded Atal Beemit Kalyan Yojana in which relief is to be paid to those members who lost their job. However, in late afternoon session, market lost its early gains and slipped into the negative terrain with report that advance tax collections fell 25.5 per cent to Rs 1,59,057 crore in the second quarter of the fiscal. Finally, Nifty ended the trade below 11550 mark.
Traders were seen piling up positions in Auto, IT and Media, while selling was witnessed in Bank, PSU Bank and FMCG. The top gainers from the F&O segment were Dr. Reddy's laboratories, Cipla and Lupin. On the other hand, the top losers were Tata Chemicals, Apollo Tyres and Petronet LNG. 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 0.82% and reached 19.94. The 50 share Nifty down by 11.15 points or 0.09% to settle at 11,504.95.
Nifty September 2020 futures closed at 11519.50 (LTP) on Friday, at a premium of 14.55 points over spot closing of 11504.95, while Nifty October 2020 futures ended at 11533.70(LTP), at a premium of 28.75 points over spot closing. Nifty September futures saw a contraction of 1,515 units, taking the total open interest (Contracts) to 1,53,669. The near month derivatives contract will expire on September 24, 2020 (Provisional).
From the most active contracts, Dr Reddys Laboratories September 2020 futures traded at a premium of 14.00 points at 5320.00 (LTP) compared with spot closing of 5306.00. The numbers of contracts traded were 92,422 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 0.10 points at 368.95 (LTP) compared with spot closing of 368.85. The numbers of contracts traded were 55,228 (Provisional).
Reliance Industries September 2020 futures traded at a premium of 1.20 points at 2304.80 (LTP) compared with spot closing of 2303.60. The numbers of contracts traded were 41,403(Provisional).
Bharti Airtel September 2020 futures traded at a premium of 0.35 points at 497.20 (LTP) compared with spot closing of 496.85. The numbers of contracts traded were 35,138 (Provisional).
Cipla September 2020 futures traded at a discount of 1.15 points at 803.75 (LTP) compared with spot closing of 804.90. The numbers of contracts traded were 30,609(Provisional).
Among, Nifty calls, 11600 SP from the September month expiry was the most active call with an addition of 7,639 units open interests. Among Nifty puts, 11500 SP from the September month expiry was the most active put with an addition of 6,909 units open interests. The maximum OI outstanding for Calls was at 12000 SP (58,700 units) and that for Puts was at 11500 SP (49,390 units). The respective Support and Resistance levels of Nifty are: Resistance 11,577.33 -- Pivot Point 11,511.72 -- Support -- 11,439.33.
The Nifty Put Call Ratio (PCR) finally stood at (1.04) for September month contract. The top five scrips with highest PCR on Vedanta (1.22), JSW Steel (1.04), Jubilant FoodWorks (0.99), Ashok Leyland (0.97) and Amara Raja Batteries (0.97).
Among most active underlying, Dr. Reddy's laboratories witnessing an addition of 3,326 units of Open Interest in the September month contract followed by Reliance Industries witnessed an addition of 1,807 units of Open Interest in the September month futures contract, Cipla an addition of 473 units of Open Interest in the September month contract, Bharti Airtel witnessed a contraction of 146 units of Open Interest in the September month future contract and ICICI Bank witnessed an addition of 5,827 units of Open Interest in the September month future contract (Provisional).
