Nifty ends near intraday high point

The local benchmark -- Nifty -- ended the wonderful day of trade with gains of above one and half percent. Earlier, market made positive start after RBI data showing that bank credit grew 5.26 per cent to Rs 102.24 lakh crore while deposits rose 11.98 per cent to Rs 142.48 lakh crore in the fortnight ended September 11. Market extended its upside with report that the Finance Ministry is likely to provide capital support from the Rs 20,000 crore fund approved by Parliament in recently concluded session to some Public Sector Banks (PSBs) in the third quarter (Q3) itself. Parliament approved Rs 20,000 crore for PSB capital infusion as part of the first batch of Supplementary Demands for Grants for 2020-21 which sought additional spending of a record Rs 2.35 trillion primarily to meet expenses for combating the Covid-19 pandemic.

In afternoon trade, Index maintained healthy gains even after S&P’s states that India's economy may experience a record contraction in the current financial year mainly due to the global COVID-19 pandemic, and the real GDP growth is expected to recover from next fiscal onwards. The agency also affirmed its BBB- long-term and A-3 short-term foreign and local currency sovereign credit ratings on India. Finally, Nifty finished day’s trade near intraday high point, as DPIIT has shared a list of 24 key sectors including food processing, toys, furniture, agro chemicals and textiles with respective ministries asking them to work on an action plan with a view to boost domestic manufacturing and make India a self-reliant country.

All the NSE sectoral indices ended in green. The top gainers from the F&O segment were PVR, Indusind Bank and Escorts. On the other hand, the top losers were Torrent Pharmaceuticals, Wipro and Hindustan Unilever. 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 decreased by 5.33% and reached 19.57. The 50 share Nifty up by 177.30 points or 1.60% to settle at 11,227.55.

Nifty October 2020 futures closed at 11242.50 (LTP) on Monday, at a premium of 14.95 points over spot closing of 11227.55, while Nifty November 2020 futures ended at 11263.00 (LTP), at a premium of 35.45 points over spot closing.  Nifty October futures saw an addition of 15,107 units, taking the total open interest (Contracts) to 1,19,318. 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 7.90 points at 2225.90 (LTP) compared with spot closing of 2218.00. The numbers of contracts traded were 28,238 (Provisional).

Bajaj Finance October 2020 futures traded at a premium of 3.95 points at 3343.95 (LTP) compared with spot closing of 3340.00. The numbers of contracts traded were 26,922 (Provisional).

ICICI Bank October 2020 futures traded at a premium of 0.95 points at 364.00 (LTP) compared with spot closing of 363.05. The numbers of contracts traded were 21,315 (Provisional).

SBIN October 2020 futures traded at a premium of 0.80 points at 188.25 (LTP) compared with spot closing of 187.45. The numbers of contracts traded were 20,366 (Provisional).

Indusind Bank October 2020 futures traded at a premium of 1.85 points at 557.85 (LTP) compared with spot closing of 556.00. The numbers of contracts traded were 20,144 (Provisional).

Among, Nifty calls, 11500 SP from the October month expiry was the most active call with an addition of 3,773 units open interests. Among Nifty puts, 11000 SP from the October month expiry was the most active put with an addition of 2,669 units open interests. The maximum OI outstanding for Calls was at 11500 SP (24,819 units) and that for Puts was at 10500 SP (46,001 units). The respective Support and Resistance levels of Nifty are: Resistance 11,277.98 -- Pivot Point 11,188.92 -- Support -- 11,138.48.

The Nifty Put Call Ratio (PCR) finally stood at (1.31) for October month contract. The top five scrips with highest PCR on ICICI Prudential (1.24), Vedanta (1.15), Bajaj Finance (1.07), Max Financial Services (1.05) and Power Grid Corporation (1.02).

Among most active underlying, Reliance Industries witnessed an addition of 545 units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessed an addition of 76 units of Open Interest in the October month future contract, Bharti Airtel witnessed an addition of 122 units of Open Interest in the October month future contract, Escorts witnessed an addition of 505 units of Open Interest in the October month contract and Dr. Reddy's Laboratories witnessing an addition of 283 units of Open Interest in the October month contract (Provisional).