NSE gauge -- Nifty50 -- witnessed bloodbath on Thursday, sliding below its crucial 10900 levels. Earlier, market made a gap down opening, as Department for Promotion of Industry and Internal Trade (DPIIT) data showed that foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) during April-June 2020. Market further extended losses with a private report that v-shaped recovery unlikely in India as Covid cases rise. Index remained under selling pressure throughout the day even after Commerce and Industry Minister Piyush Goyal’s statement that the government has set up a National Traders' Welfare Board with the objectives of welfare of traders and their employees, simplification of the Acts and rules applicable to traders, reduction of compliance burden and improvement in access to funds. Finally, Nifty ended worst day of trade near low point, as COVID-19 and the oil price shock of 2020 are taking a heavy toll on global banks, S&P Global Ratings said adding that it will be difficult for them to return to pre-crisis levels in the next three years. To estimate the shape of recovery for banks, S&P analysed 20 of the largest banking systems globally in its report.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment were Apollo Hospitals Enterprise, Bharti Infratel and Godrej Consumer Products. On the other hand, the top losers were Indiabulls Housing Finance, Ashok Leyland And Indusind Bank. In the index option segment, maximum OI continues to be seen in the 11,000 - 12,000 calls and 10,000 - 10,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 12.32% and reached 23.58. The 50 share Nifty down by 326.30 points or 2.93% to settle at 10,805.55.
Nifty October 2020 futures closed at 10840.00 (LTP) on Thursday, at a premium of 34.45 points over spot closing of 10805.55, while Nifty November 2020 futures ended at 10861.90 (LTP), at a premium of 56.35 points over spot closing. Nifty October futures saw an addition of 48,440 units, taking the total open interest (Contracts) to 1,24,035. The near month derivatives contract will expire on October 29, 2020 (Provisonal).
From the most active contracts, Reliance Industries October 2020 futures traded at a premium of 5.00 points at 2200.00 (LTP) compared with spot closing of 2195.00. The numbers of contracts traded were 41,856 (Provisonal).
Bharti Airtel October 2020 futures traded at a premium of 3.05 points at 423.00 (LTP) compared with spot closing of 419.95. The numbers of contracts traded were 39,274 (Provisonal).
ICICI Bank October 2020 futures traded at a premium of 1.35 points at 338.70 (LTP) compared with spot closing of 337.35. The numbers of contracts traded were 29,015 (Provisonal).
HDFC October 2020 futures traded at a premium of 4.90 points at 1641.15 (LTP) compared with spot closing of 1636.25. The numbers of contracts traded were 28,293 (Provisonal).
TCS October 2020 futures traded at a premium of 2.10 points at 2335.00 (LTP) compared with spot closing of 2332.90. The numbers of contracts traded were 26,264 (Provisonal).
Among, Nifty calls, 11500 SP from the October month expiry was the most active call with an addition of 4,992 units open interests. Among Nifty puts, 10500 SP from the October month expiry was the most active put with an addition of 8,395 units open interests. The maximum OI outstanding for Calls was at 11500 SP (22,851 units) and that for Puts was at 10500 SP (40,648 units). The respective Support and Resistance levels of Nifty are: Resistance 10,950.50 -- Pivot Point 10,870.35 -- Support -- 10,725.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.23) for October month contract. The top five scrips with highest PCR on Max Financial Services (6.16), Vedanta (1.80), Piramal Enterprises (1.67), Container Corporation of India (1.31) and JSW Steel (1.30).
Among most active underlying, Reliance Industries witnessed an addition of 11,947 units of Open Interest in the October month futures contract followed by Bharti Airtel witnessed an addition of 14,002 units of Open Interest in the October month future contract, Infosys an addition of 5,668 units of Open Interest in the October month contract, Bajaj Finance witnessed an addition of 2,433 units of Open Interest in the October month future contract and Dr. Reddy's laboratories witnessing a contraction of 1,893 units of Open Interest in the October month contract(Provisional).
