The local benchmark -- Nifty -- continued its upward journey for the third consecutive session. Market made optimistic start, as traders took support with Finance Ministry’s report that important structural reforms undertaken by the government to combat risks associated with the coronavirus pandemic will strengthen the country's economic fundamentals and ensure long-term sustained growth. Market added gains to touched intraday high point with Commerce and Industry Minister Piyush Goyal’s statement that quality, technology and scale of production -- not government subsidies -- will help India take its annual exports to $1 trillion. He exhorted exporters and the industry as a whole to target $1 trillion worth of shipments. He said there is a need to identify areas where sensible policies can help take exports to $1 trillion.
Index continued its trade in green territory as commerce ministry data showed that after contracting for six months in a row, the country's exports grew by 5.27 percent year-on-year to $27.4 billion in September, while imports slipped by 19.6 per cent to $30.31 billion. The trade deficit during the month under review narrowed to $2.91 billion as against $11.67 billion in the same period of 2019. Traders overlooked report that snapping their three-month buying spree, overseas investors turned net sellers in Indian markets in September due to uncertainty ahead of the US presidential polls and surging coronavirus cases. Finally, Nifty ended the day’s trade with gains above half a percent.
Most of the NSE sectoral indices ended in green except Auto, Media and PSU Bank. The top gainers from the F&O segment were TCS, Wipro and Adani Enterprises. On the other hand, the top losers were Page Industries, Info Edge (India) and Escorts. In the index option segment, maximum OI continues to be seen in the 11,000 - 12,500 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 7.67% and reached 19.76. The 50 share Nifty up by 86.40 points or 0.76% to settle at 11,503.35.
Nifty October 2020 futures closed at 11526.50 (LTP) on Monday, at a premium of 23.15 points over spot closing of 11503.35, while Nifty November 2020 futures ended at 11549.30(LTP), at a premium of 45.95 points over spot closing. Nifty October futures saw an addition of 4,913 units, taking the total outstanding open interest (Contracts) to 1,29,055 units. The near month derivatives contract will expire on October 29, 2020 (Provisional).
From the most active contracts, TCS October 2020 futures traded at a premium of 0.05 points at 2714.00 (LTP) compared with spot closing of 2713.95. The numbers of contracts traded were 48,974 (Provisional).
Indusind Bank October 2020 futures traded at a premium of 3.00 points at 606.50 (LTP) compared with spot closing of 603.50. The numbers of contracts traded were 32,541 (Provisional).
Reliance Industries October 2020 futures traded at a premium of 9.50 points at 2224.50 (LTP) compared with spot closing of 2215.00. The numbers of contracts traded were 26,211 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 2.25 points at 375.50 (LTP) compared with spot closing of 373.25. The numbers of contracts traded were 25,146 (Provisional).
Axis Bank October 2020 futures traded at a premium of 2.65 points at 446.65 (LTP) compared with spot closing of 444.00. The numbers of contracts traded were 23,276 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 1,095 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 4,680 units open interests. The maximum OI outstanding for Calls was at 12000 SP (24,340 units) and that for Puts was at 10500 SP (48,264 units). The respective Support and Resistance levels of Nifty are: Resistance 11,570.17 -- Pivot Point 11,511.23 -- Support -- 11,444.42.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for October month contract. The top five scrips with highest PCR on JSW Steel (1.13), ICICI Prudential (1.08), TCS (1.04), Bajaj Finance (0.98) and Vedanta (0.96).
Among most active underlying, TCS witnessed an addition of 3,509 units of Open Interest in the October month futures contract, followed by Reliance Industries witnessed an addition of 2,047 units of Open Interest in the October month futures contract, Infosys witnessed an addition of 1,278 units of Open Interest in the October month contract, Bajaj Finance witnessed a contraction of 520 units of Open Interest in the October month future contract and Indusind Bank witnessed an addition of 1,322 units of Open Interest in the October month contract (Provisional).
