NSE gauge -- Nifty50 – continued its weak trade on Tuesday and closed the session with cut of above half a percent. Earlier, market made cautious start with CARE Ratings’ a multi-sector survey showed that business activity is unlikely to touch pre-COVID-19 levels before March 2021, and there is a need for the government to step in and give a push to the economy as it has not done enough till now. Further, market extended its downside, as traders failed to take support with Commerce Minister Piyush Goyal’s statement that the current crisis should be used as an opportunity to make the transition to clean energy smoother, faster, more resilient and affordable. Traders also took a note of former Niti Aayog vice chairman Arvind Panagariya’s statement that India will need fiscal stimulus, lower interest rates, faster bank recapitalisation and privatisation of some PSUs to return to 7 percent growth rate. Index continued its free fall till the end of the session even after Federation of All India Farmer Associations’ (FAIFA) stated that the newly passed farm bills will give farmers the freedom to trade across states and empower them to turn into traders of their own produce and be in control of the process.
Most of the NSE sectoral indices ended in red except IT and Pharma. The top gainers from the F&O segment were Divi's Laboratories, Coforge and Mindtree. On the other hand, the top losers were Zee Entertainment Enterprises, Canara Bank and Manappuram Finance. 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 decreased by 4.87% and reached 21.11. The 50 share Nifty down by 96.90 points or 0.86% to settle at 11,153.65.
Nifty September 2020 futures closed at 11177.00 (LTP) on Tuesday, at a premium of 23.35 points over spot closing of 11153.65, while Nifty October 2020 futures ended at 11196.90(LTP) , at a premium of 43.25 points over spot closing. Nifty September futures saw an addition of 12,604 units, taking the total open interest (Contracts) to 1,22,349 . 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 7.45 points at 2227.00 (LTP) compared with spot closing of 2219.55. The numbers of contracts traded were 48,863 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 0.45 points at 354.95 (LTP) compared with spot closing of 354.50. The numbers of contracts traded were 46,040 (Provisional).
Axis Bank September 2020 futures traded at a premium of 0.95 points at 413.20 (LTP) compared with spot closing of 412.25. The numbers of contracts traded were 36,900 (Provisional).
HDFC Bank September 2020 futures traded at a premium of 3.60 points at 1041.60 (LTP) compared with spot closing of 1038.00. The numbers of contracts traded were 35,926(Provisional).
SBIN September 2020 futures traded flat at 186.90 (LTP) compared with spot closing of 186.90. The numbers of contracts traded were 33,793 (Provisional).
Among, Nifty calls, 11300 SP from the September month expiry was the most active call with an addition of 23,619 units open interests. Among Nifty puts, 11000 SP from the September month expiry was the most active put with an addition of 11,914 units open interests. The maximum OI outstanding for Calls was at 11500 SP (68,062 units) and that for Puts was at 11000 SP (54,548 units). The respective Support and Resistance levels of Nifty are: Resistance 11,275.68 -- Pivot Point 11,180.17 -- Support -- 11,058.13.
The Nifty Put Call Ratio (PCR) finally stood at (0.74) for September month contract. The top five scrips with highest PCR on Vedanta (1.35), Jubilant FoodWorks (1.09), MRF (0.90), Ashok Leyland (0.84) and Wipro (0.83).
Among most active underlying, Reliance Industries witnessed an addition of 6,864 units of Open Interest in the September month futures contract followed by Dr. Reddy's laboratories witnessing a contraction of 554units of Open Interest in the September month contract, Bharti Airtel witnessed an addition of 5,268 units of Open Interest in the September month future contract, Infosys an addition of 681 units of Open Interest in the September month contract and Bajaj Finance witnessed an addition of 1,529 units of Open Interest in the September month future contract (Provisional).
