The local benchmark -- Nifty -- ended Wednesday’s trade with gains of above half a percent. Earlier, market made cautious start with reports that workers in India are facing increased burnout due to lack of separation between work and personal life as well as concerns of contracting COVID-19. Close to one-third of workers in India cited increased rates of burnout over the past six months with the lack of separation between work duties and personal obligations as negatively impacting their well-being. But soon, market sentiments turned positive and extended its upside till the end of session, as traders found solace with report that companies garnered more than Rs 1 lakh crore from the capital markets in August, a surge of 64 percent from the preceding month, with private placement of debt instruments emerging as the most preferred route for financing business needs. The funds have been mopped-up mainly for business expansion plans, loan repayments and working capital requirements. Adding optimistic, Fitch Ratings’ report stated that IT services sector is likely to resume high single-digit revenue growth in 2021-2022 on the back of higher demand for digital transformation after a flattish 2020.
Traders were seen piling positions in Bankex, Auto and FMGC sector while selling was witnessed in Metal, Media and Pharma sector stocks. The top gainers from the F&O segment were Titan Company, Ambuja Cements and Bajaj Auto. On the other hand, the top losers were Vedanta, Zee Entertainment Enterprises and Bajaj Finance. 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 2.16% and reached 20.06. The 50 share Nifty up by 76.45 points or 0.66% to settle at 11,738.85.
Nifty October 2020 futures closed at 11756.00 (LTP) on Wednesday, at a premium of 17.15 points over spot closing of 11738.85, while Nifty November 2020 futures ended at 11776.10 (LTP), at a premium of 37.25 points over spot closing. Nifty October futures saw an addition of 8,028 units, taking the total open interest (Contracts) to 1,41,752. 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 8.40 points at 2267.80 (LTP) compared with spot closing of 2259.40. The numbers of contracts traded were 74,476 (Provisional).
Bajaj Finance October 2020 futures traded at a premium of 2.00 points at 3335.00 (LTP) compared with spot closing of 3333.00. The numbers of contracts traded were 34,939 (Provisional).
TCS October 2020 futures traded at a premium of 5.25 points at 2758.05 (LTP) compared with spot closing of 2752.80. The numbers of contracts traded were 30,405 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 1.90 points at 384.65 (LTP) compared with spot closing of 382.75. The numbers of contracts traded were 21,843 (Provisional).
Axis Bank October 2020 futures traded at a premium of 1.10 points at 453.70 (LTP) compared with spot closing of 452.60. The numbers of contracts traded were 19,732 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with a contraction of 360 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 4,238 units open interests. The maximum OI outstanding for Calls was at 12000 SP (25,876 units) and that for Puts was at 10500 SP (47,240 units). The respective Support and Resistance levels of Nifty are: Resistance 11,791.48 -- Pivot Point 11,710.42 -- Support -- 11,657.78.
The Nifty Put Call Ratio (PCR) finally stood at (1.50) for October month contract. The top five scrips with highest PCR on HDFC (1.30), Indusind Bank (1.04), Vedanta (0.98), Titan Company (0.95) and ICICI Prudential (0.88).
Among most active underlying, Reliance Industries witnessed a contraction of 3,067 units of Open Interest in the October month futures contract, followed by Bajaj Finance witnessed an addition of 1,669 units of Open Interest in the October month future contract, TCS witnessed an addition of 3,238 units of Open Interest in the October month futures contract, Infosys witnessed an addition of 2,107 units of Open Interest in the October month futures contract and Titan Company witnessed an addition of 1,317 units of Open Interest in the October month future contract (Provisional).
