In volatile trading session, S&P CNX -- Nifty -- snapped the day’s trades marginally lower on Tuesday. Market made positive start, as Reserve Bank has decided to extend by six months the enhanced borrowing facility provided to banks to meet liquidity shortage till March 31, 2021, amid the ongoing economic woes created by the coronavirus pandemic. Afterwards index turned volatile, as ICRA revised its forecast for the contraction in India's FY21 GDP to 11 per cent from its earlier assessment of 9.5 per cent. The ratings agency cited the elevated levels of Covid-19 infections at the end of Q2FY21. Market continued its cautious trade till the end of session, after the World Bank said the coronavirus pandemic is expected to lead to the slowest growth in more than 50 years in East Asia and the Pacific as well as China, while up to 38 million people are set to be pushed back into poverty. The bank said the region this year is projected to grow by only 0.9%, the lowest rate since 1967. Traders overlooked report of Ministry of Corporate Affairs which has extended the duration of several schemes till December 31 in view of the continued disruption caused due to the COVID-19 pandemic in certain parts of the country. Finally, Nifty ended trade below 11250 mark.
Most of the NSE sectoral indices ended in red except Auto, IT and Metal. The top gainers from the F&O segment were Hindalco Industries, Jindal Steel & Power and Page Industries. On the other hand, the top losers were Vodafone Idea, Bharat Heavy Electricals and Bank of Baroda. 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 1.03% and reached 19.78. The 50 share Nifty down by 5.15 points or 0.04% to settle at 11,222.40.
Nifty October 2020 futures closed at 11237.50 (LTP) on Tuesday, at a premium of 15.10 points over spot closing of 11222.40, while Nifty November 2020 futures ended at 11257.35 (LTP), at a premium of 34.95 points over spot closing. Nifty October futures saw an addition of 5,427 units, taking the total open interest (Contracts) to 1,19,344. 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 13.10 points at 2255.00 (LTP) compared with spot closing of 2241.90. The numbers of contracts traded were 43,623 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 1.95 points at 360.35 (LTP) compared with spot closing of 358.40. The numbers of contracts traded were 24,091(Provisional).
Bajaj Finance October 2020 futures traded at a premium of 6.20 points at 3293.20 (LTP) compared with spot closing of 3287.00. The numbers of contracts traded were 22,198(Provisional).
TCS October 2020 futures traded at a discount of 6.70 points at 2480.05 (LTP) compared with spot closing of 2486.75. The numbers of contracts traded were 21,184 (Provisional).
HDFC Bank October 2020 futures traded at a discount of 2.50 points at 1061.90 (LTP) compared with spot closing of 1064.40. The numbers of contracts traded were 20,587(Provisional).
Among, Nifty calls, 11500 SP from the October month expiry was the most active call with an addition of 567 units open interests. Among Nifty puts, 11000 SP from the October month expiry was the most active put with an addition of 1200 units open interests. The maximum OI outstanding for Calls was at 11500 SP (24,065 units) and that for Puts was at 10500 SP (51,324 units). The respective Support and Resistance levels of Nifty are: Resistance 11,291.53 -- Pivot Point 11,236.27 -- Support -- 11,167.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.34) for October month contract. The top five scrips with highest PCR on ICICI Prudential (1.17), MRF (1.05), JSW Steel (1.01), Bajaj Finance (1.01) and TCS (0.97).
Among most active underlying, Reliance Industries witnessed an addition of 988 units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessed an addition of 376 units of Open Interest in the October month future contract, TCS witnessed an addition of 1132 units of Open Interest in the October month contract, Infosys witnessed an addition of 1023 units of Open Interest in the October month future contract and Bharti Airtel witnessed an addition of 1,216 units of Open Interest in the October month future contract(Provisional).
