Nifty extends winning streak for fourth consecutive session

S&P CNX -- Nifty -- extended its winning streak for the fourth consecutive session. Market made a positive start with IT Minister Ravi Shankar Prasad’s statement that artificial intelligence (AI) has massive potential to generate development and India is well-poised to tap into the opportunity with its large pool of skilled professionals. He also said the proposed data protection legislation will give a big fillip to the country's data economy. Index continued its fine fettle trade, as traders took support with Commerce Minister Piyush Goyal’s statement Indian exports will automatically increase if the products are good and competitively priced and that products are entrepreneurs should not think that subsidies are the only solution. In the last leg of trade, market spike up to touched intraday high point, as India’s service sector activity stabilised in the month of September, with the relaxation of coronavirus pandemic 2019 (COVID-19) restrictions. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 49.8 in September from 41.8 in August. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - surged to 54.6 in September from 46.0 in August. Finally, Nifty ended wonderful day of trade with gains of above a percent. 

Most of the NSE sectoral indices ended in green except FMGC, Metal and Pharma. The top gainers from the F&O segment were Tata Motors, HDFC and LIC Housing Finance. On the other hand, the top losers were Steel Authority of India, Marico and Vodafone Idea. 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 decreased by 0.35% and reached 19.64. The 50 share Nifty up by 159.05 points or 1.38% to settle at 11,662.40.

Nifty October 2020 futures closed at 11672.65 (LTP) on Tuesday, at a premium of 10.25 points over spot closing of 11662.40, while Nifty November 2020 futures ended at 11698.05 (LTP), at a premium of 35.65 points over spot closing.  Nifty October futures saw an addition of 15,932 units, taking the total open interest (Contracts) to 1,41,590. The near month derivatives contract will expire on October 29, 2020 (Provisional).

From the most active contracts, HDFC October 2020 futures traded at a premium of 11.95 points at 1931.95 (LTP) compared with spot closing of 1920.00. The numbers of contracts traded were 45,381 (Provisional).

Tata Motors October 2020 futures traded at a premium of 0.85 points at 145.10 (LTP) compared with spot closing of 144.25. The numbers of contracts traded were 29,579 (Provisional).

TCS October 2020 futures traded at a premium of 7.05 points at 2726.85 (LTP) compared with spot closing of 2719.80. The numbers of contracts traded were 28,706 (Provisional).

Bajaj Finance October 2020 futures traded at a premium of 17.00 points at 3486.00 (LTP) compared with spot closing of 3469.00. The numbers of contracts traded were 24,993 (Provisional).

Reliance Industries October 2020 futures traded at a premium of 11.00 points at 2224.85 (LTP) compared with spot closing of 2213.85. The numbers of contracts traded were 24,242 (Provisional).

Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 4,131 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 3,689 units open interests. The maximum OI outstanding for Calls was at 12000 SP (28,286 units) and that for Puts was at 10500 SP (48,809 units). The respective Support and Resistance levels of Nifty are: Resistance 11,707.03 -- Pivot Point 11,635.67 -- Support -- 11,591.03.

The Nifty Put Call Ratio (PCR) finally stood at (1.43) for October month contract. The top five scrips with highest PCR on ICICI Prudential (1.20), HDFC (1.13), Bajaj Finance (1.04), Indusind Bank (1.02) and Vedanta (0.98).

Among most active underlying, Reliance Industries witnessed an addition of 2,409 units of Open Interest in the October month futures contract, followed by HDFC witnessed an addition of 4,314 units of Open Interest in the October month futures contract, Tata Motors witnessed an addition of 1,675 units of Open Interest in the October month future contract, TCS witnessed an addition of 1,851 units of Open Interest in the October month futures contract and Bajaj Finance witnessed an addition of 1,907 units of Open Interest in the October month future contract (Provisional).