Nifty -- wiped-off early gains to end Wednesday’s session in red zone. Earlier, market made positive start, as traders found support with ICRA’s report that India's current account will swing to a surplus of $30 billion or 1.2 percent of GDP in FY21, due to slowdown in imports during the pandemic, making it clear that it will be a temporary phenomenon. Index continued its trade in green territory, after industry body CII urged the government to extend the export incentive scheme MEIS till December 31 in its present form to help exporters. CII also suggested that the ambit of coverage under the Emergency Credit Line Guarantee Scheme (ECGLS) should be extended to the extent of any unutilised amount for revival of stressed sectors, including civil aviation, hospitality and tourism.
In afternoon session, market failed to extend its gains, as the United Nations Conference on Trade and Development (UNCTAD) projected India’s economy to contract 5.9 per cent in 2020, and warned the country to not repeat its past mistake of announcing austerity measures. It forecast the economy to grow 3.9 per cent next year. Traders failed to take any sense of relief with report that the government aims to catapult India to among the top 10 countries in World Bank's ease of doing business rankings with the comprehensive labour reforms which are likely to be completed after Parliament approves three draft codes in the ongoing session.
Most of the NSE sectoral indices ended in red except Bank, FMGC and Private Bank. The top gainers from the F&O segment were Tata Chemicals, Page Industries and Tata Power Company. On the other hand, the top losers were Vodafone Idea, Bharti Infratel and Bharti Airtel. 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 2.45% and reached 20.89. The 50 share Nifty down by 21.80 points or 0.20% to settle at 11,131.85.
Nifty September 2020 futures closed at 11148.50 (LTP) on Wednesday, at a premium of 16.65 points over spot closing of 11131.85, while Nifty October 2020 futures ended at 11162.00 (LTP), at a premium of 30.15 points over spot closing. Nifty September futures saw an addition of 2,371 units, taking the total open interest (Contracts) to 91,792. 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 7.00 points at 2235.00 (LTP) compared with spot closing of 2228.00. The numbers of contracts traded were 49,536 (Provisional).
Bharti Airtel September 2020 futures traded at a premium of 0.65 points at 433.15 (LTP) compared with spot closing of 432.50. The numbers of contracts traded were 43,006 (Provisional).
HDFC Bank September 2020 futures traded at a premium of 3.15 points at 1052.10 (LTP) compared with spot closing of 1048.95. The numbers of contracts traded were 41,367 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 0.70 points at 354.20 (LTP) compared with spot closing of 353.50. The numbers of contracts traded were 35,663 (Provisional).
HDFC September 2020 futures traded at a premium of 5.60 points at 1672.60 (LTP) compared with spot closing of 1667.00. The numbers of contracts traded were 30,251 (Provisional).
Among, Nifty calls, 11200 SP from the September month expiry was the most active call with an addition of 22,230 units open interests. Among Nifty puts, 11100 SP from the September month expiry was the most active put with an addition of 8,767 units open interests. The respective Support and Resistance levels of Nifty are: Resistance 11,252.80 -- Pivot Point 11,138.60 -- Support -- 11,017.65.
The Nifty Put Call Ratio (PCR) finally stood at (0.74) for September month contract. The top five scrips with highest PCR on Vedanta (1.43), Jubilant FoodWorks (1.27), MRF (1.04), Wipro (0.93) and Mindtree (0.89).
Among most active underlying, Reliance Industries witnessed an addition of 4,773 units of Open Interest in the September month futures contract followed by Bharti Airtel witnessed an addition of 4,272 units of Open Interest in the September month future contract, HDFC Bank an addition of 7,368 units of Open Interest in the September month contract, Dr. Reddy's laboratories witnessing an addition of 1,199 units of Open Interest in the September month contract, and TCS witnessed a contraction of 1,085 units of Open Interest in the September month future contract (Provisional).
