Bulls made spectacular comeback on --Nifty-- after a sharp cut in previous session, holding their control throughout the day’s trade on Friday and ended with gains of above two percent. Earlier, market made optimistic start, as traders took support with report that the government has extended the suspension of insolvency proceedings for any COVID-19 related default by a period of three months, effective from September 25. The Insolvency & Bankruptcy Code (IBC) was suspended for a period of six months with effect from March 25, 2020, by the government earlier, to protect those experiencing financial distress on account of the pandemic. Market continue firm trade with report that the Reserve Bank of India (RBI) has announced it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1.
In the afternoon trade, market added some more points to trade above 10950 mark, with International Monetary Fund’s (IMF) statement that Prime Minister Narendra Modi’s ‘Aatmanirbhar Bharat’ is an important initiative. The economic package under this self-reliant India initiative, which was announced in the aftermath of the coronavirus shock, has supported the Indian economy and mitigated significant downside risks. Finally, Nifty ended wonderful day of trade above its 11000 mark.
All the NSE sectoral indices ended in green. The top gainers from the F&O segment were Ashok Leyland, Vodafone Idea and GMR Infrastructure. On the other hand, the top losers were SBI Life Insurance Company, Havells India And Bharat Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 12,000 - 12,700 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 decreased by 11.68% and reached 20.76. The 50 share Nifty up by 244.70 points or 2.26% to settle at 11,050.25.
Nifty October 2020 futures closed at 11031.90 (LTP) on Friday, at a discount of 18.35 points over spot closing of 11050.25 , while Nifty November 2020 futures ended at 11052.90 (LTP) , at a premium of 2.65 points over spot closing. Nifty October futures saw An addition of 17,874 units, taking the total open interest (Contracts) to 1,25,147. The near month derivatives contract will expire on October 29, 2020 (Provisional).
From the most active contracts, Reliance Industries October 2020 futures traded at a premium of 9.15 points at 2208.00 (LTP) compared with spot closing of 2198.85. The numbers of contracts traded were 39,593 (Provisional).
Bharti Airtel October 2020 futures traded at a premium of 1.30 points at 441.30 (LTP) compared with spot closing of 440.00. The numbers of contracts traded were 26,709 (Provisional).
Bajaj Finance October 2020 futures traded at a premium of 11.70 points at 3143.70 (LTP) compared with spot closing of 3132.00. The numbers of contracts traded were 26,284 (Provisional).
SBIN October 2020 futures traded at a premium of 0.15 points at 182.40 (LTP) compared with spot closing of 182.25. The numbers of contracts traded were 22,575 (Provisional).
TCS October 2020 futures traded at a discount of 15.00 points at 2402.75 (LTP) compared with spot closing of 2417.75. The numbers of contracts traded were 22,288 (Provisional).
Among, Nifty calls, 11500 SP from the October month expiry was the most active call with an addition of 706 units open interests. Among Nifty puts, 10500 SP from the October month expiry was the most active put with an addition of 3,716 units open interests. The maximum OI outstanding for Calls was at 12500 SP (21,097 units) and that for Puts was at 10500 SP (44,203 units). The respective Support and Resistance levels of Nifty are: Resistance 11,130.28 -- Pivot Point 10,992.57 -- Support -- 10,912.53.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for October month contract. The top five scrips with highest PCR on Max Financial Services (1.65), Vedanta (1.10), Piramal Enterprises (1.00), REC (0.98) and Container Corporation of India (0.98).
Among most active underlying, Reliance Industries witnessed an addition of 2,160 units of Open Interest in the October month futures contract, followed by Bharti Airtel witnessed a contraction of 581 units of Open Interest in the October month future contract, Bajaj Finance witnessed an addition of 175 units of Open Interest in the October month future contract, Infosys witnessed an addition of 1,551 units of Open Interest in the October month contract and HCL Technologies witnessing an addition of 868 units of Open Interest in the October month contract(Provisional).
