S&P CNX -- Nifty -- extended its gains on Thursday and finished the day’s trade with gains of above one and half percent. Market made positive start, as traders found support with the Reserve Bank of India’s (RBI) statement that India’s current account balance (CAB) recorded a surplus of $19.8 billion -- 3.9 percent of GDP -- in the June quarter of FY21, up from the surplus of $0.6 billion in the preceding quarter (Q4FY20), on the back of lower trade deficit. Further, index added some points to trade fine-fettle, as traders remain energized with Commerce and Industry Minister Piyush Goyal’s statement that the government is opening up the economy for greater participation of the private sector and has been working in different ways to remove entry barriers for new investments. He said the government has opened up defence manufacturing for the domestic industry in a much bigger way and coal mining for commercial engagement. Market holding its control till the end of the day, after India's manufacturing sector activity improved for the second straight month in September and touched an over eight-and-a-half-year high supported by accelerated increases in new orders and production, even as firms reduced staff numbers. The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased from 52.0 in August to 56.8 in September -- highest since January 2012. Finally, Nifty ended the session above its crucial 11400 mark.
All the NSE sectoral indices ended in green. The top gainers from the F&O segment were Indusind Bank, PVR and Shriram Transport Finance Company. On the other hand, the top losers were Vodafone Idea, Hindustan Petroleum Corporation and Escorts. 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 6.41% and reached 18.28. The 50 share Nifty up by 169.40 points or 1.51% to settle at 11,416.95.
Nifty October 2020 futures closed at 11440.20 (LTP) on Thursday, at a premium of 23.25 points over spot closing of 11416.95, while Nifty November 2020 futures ended at 11458.05 (LTP), at a premium of 41.10 points over spot closing. Nifty October futures saw an addition of 6,923 units, taking the total open interest (Contracts) to 1,27,286 . The near month derivatives contract will expire on October 29, 2020 (Provisional).
From the most active contracts, Indusind Bank October 2020 futures traded at a premium of 2.05 points at 595.05 (LTP) compared with spot closing of 593.00. The numbers of contracts traded were 34,586 (Provisional).
Bajaj Finance October 2020 futures traded at a premium of 14.00 points at 3458.00 (LTP) compared with spot closing of 3444.00. The numbers of contracts traded were 27,348 (Provisional).
Reliance Industries October 2020 futures traded at a premium of 13.05 points at 2242.10 (LTP) compared with spot closing of 2229.05. The numbers of contracts traded were 26,367 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 1.95 points at 370.45 (LTP) compared with spot closing of 368.50. The numbers of contracts traded were 25,099 (Provisional).SBIN October 2020 futures traded at a premium of 0.90 points at 191.10 (LTP) compared with spot closing of 190.20. The numbers of contracts traded were 23,534 (Provisional).
Among, Nifty calls, 11500 SP from the October month expiry was the most active call with a contraction of 660 units open interests. Among Nifty puts, 11000 SP from the October month expiry was the most active put with an addition of 3,173 units open interests. The maximum OI outstanding for Calls was at 11500 SP (23,390 units) and that for Puts was at 10500 SP (50,087 units). The respective Support and Resistance levels of Nifty are: Resistance 11,448.02 -- Pivot Point 11,397.53 -- Support -- 11,366.47.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for October month contract. The top five scrips with highest PCR on ICICI Prudential (1.19), Bajaj Finance (1.18), TCS (1.06), HDFC (0.97) and Vedanta (0.95).
Among most active underlying, Reliance Industries witnessed an addition of 1,712 units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessed an addition of 2,180 units of Open Interest in the October month future contract, Indusind Bank witnessed a contraction of 919 units of Open Interest in the October month contract, Bajaj Auto witnessed an addition of 2,023 units of Open Interest in the October month future contract and State Bank of India witnessed a contraction of 542 units of Open Interest in the October month future contract (Provisional).
