NSE gauge -- Nifty50 -- finished sluggish trade of day with cut of over two percent. Key index begun day on cautious note, as a report released by the Finance Ministry stated that India's total external debt increased by 2.8 percent to $558.5 billion at the end of March mainly on account of a rise in commercial borrowings. The external debt stood at $543 billion at end-March 2019. Further, market traded flat, as Lok Sabha passed a bill to amend the Factoring Regulation Act that seeks to help micro, small and medium enterprises by providing additional avenues for getting credit facility. Market continued its trade below the neutral line, as traders failed to took support with Commerce and Industry Minister Piyush Goyal’s statement that several multinational firms in sectors such as electronics, retail, e-commerce, and automotive, among others, have shown interest in shifting their base to India. He also said the government is working hard to institutionalize more investor friendly reforms to support and facilitate investments into India.
During late afternoon session, market extended losses to trade below 11350 mark, after Reserve Bank of India’s data has showed that country's foreign exchange reserves declined by $353 million to $541.660 billion in the week ended September 11. During the reporting week, the fall in reserves was due to a decline in foreign currency assets (FCAs), a major component of the overall reserves. Finally, Nifty ended trade near intraday low point.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment were TCS, Infosys and Kotak Mahindra Bank. On the other hand, the top losers were Indiabulls Housing Finance, Jindal Steel & Power And Indusind Bank. In the index option segment, maximum OI continues to be seen in the 11,000 - 12,000 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 13.02% and reached 22.66. The 50 share Nifty down by 254.40 points or 2.21% to settle at 11,250.55.
Nifty September 2020 futures closed at 11226.10 (LTP) on Monday, at a discount of 24.45 points over spot closing of 11250.55, while Nifty October 2020 futures ended at 11240.55(LTP), at a discount of 10.00 points over spot closing. Nifty September futures saw an addition of 4,820 units, taking the total open interest (Contracts) to 1,36,744 . 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 4.10 points at 2254.05 (LTP) compared with spot closing of 2249.95. The numbers of contracts traded were 54,417(Provisional).
ICICI Bank September 2020 futures traded at a premium of 0.25 points at 351.05 (LTP) compared with spot closing of 350.80. The numbers of contracts traded were 48,750 (Provisional).
Dr. Reddy's Laboratories September 2020 futures traded at a premium of 15.35 points at 5145.00 (LTP) compared with spot closing of 5129.65. The numbers of contracts traded were 42,529(Provisional).
HDFC Bank September 2020 futures traded at a premium of 3.05 points at 1045.30 (LTP) compared with spot closing of 1042.25. The numbers of contracts traded were 32,743 (Provisional).
Bharti Airtel September 2020 futures traded at a discount of 0.35 points at 467.30 (LTP) compared with spot closing of 467.65. The numbers of contracts traded were 30,747(Provisional).
Among, Nifty calls, 11500 SP from the September month expiry was the most active call with an addition of 33,009 units open interests. Among Nifty puts, 11400 SP from the September month expiry was the most active put with a contraction of 9,653 units open interests. The maximum OI outstanding for Calls was at 11500 SP (76,301 units) and that for Puts was at 11000 SP (44,804 units). The respective Support and Resistance levels of Nifty are: Resistance 11,451.03 -- Pivot Point 11,334.77 -- Support --11,134.28.
The Nifty Put Call Ratio (PCR) finally stood at (0.74) for September month contract. The top five scrips with highest PCR on Vedanta (1.29), Jubilant FoodWorks (1.03), JSW Steel (0.92), MRF (0.89) and Wipro (0.78).
Among most active underlying, Reliance Industries witnessed an addition of 2,919 units of Open Interest in the September month futures contract followed by Dr. Reddy's laboratories witnessing a contraction of 496 units of Open Interest in the September month contract, Infosys an addition of 3,761 units of Open Interest in the September month contract, Bharti Airtel witnessed an addition of 1,999 units of Open Interest in the September month future contract and HCL Technologies witnessed an addition of 531units of Open Interest in the September month future contract (Provisional).
