Rising for the seventh straight session, key equity benchmark -- Nifty -- ended last trading day of the week with gains of above half a percent. Despite initial volatility, market gained traction as bank credit grew by 5.15 per cent to Rs 102.72 lakh crore, and deposits rose by 10.51 per cent to Rs 142.64 lakh crore in the fortnight ended September 25, according to RBI data. In the fortnight ended September 27, 2019, bank credit was Rs 97.68 lakh crore and deposits stood at Rs 129.06 lakh crore. Further, market continued its trade in green zone with report that Assocham’s report that India's economy has shown a remarkable resilience in the last few months, braving the impact of the coronavirus pandemic with lead indicators such as manufacturing PMI and exports returning to growth trajectory.
Traders ignored RBI said that real gross domestic product (GDP) growth in 2020-21 is expected to be negative at (-) 9.5 per cent, with risks tilted to the downside: (-) 9.8 per cent in Q2:2020-21; (-) 5.6 per cent in Q3; and 0.5 per cent in Q4. Real GDP growth for Q1:2021-22 is placed at 20.6 per cent. In last leg of trade market touched intraday high point, with Finance Ministry’s statement that banks have sanctioned loans of about Rs 1,87,579 crore to 50.7 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector impacted by slowdown caused by the coronavirus pandemic. Finally, Nifty ended the day’s trade near intraday high point.
Traders were seen piling positions in Bankex, IT and PSU Bank sector while selling was witnessed in Auto, FMGC and Media sector stocks. The top gainers from the F&O segment were LIC Housing Finance, Indiabulls Housing Finance and Wipro. On the other hand, the top losers were Biocon, Zee Entertainment Enterprises and Cummins India. In the index option segment, maximum OI continues to be seen in the 12,000 - 12,700 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 remain unchanged with its previous close of 20.38. The 50 share Nifty up by 79.60 points or 0.67% to settle at 11,914.20.
Nifty October 2020 futures closed at 11946.75 (LTP) on Friday, at a premium of 32.55 points over spot closing of 11914.20, while Nifty November 2020 futures ended at 11969.60 (LTP), at a premium of 55.40 points over spot closing. Nifty October futures saw an contraction of 7,496 units, taking the total open interest (Contracts) to 1,55,012. The near month derivatives contract will expire on October 29, 2020 (Provisional).
From the most active contracts, ICICI Bank October 2020 futures traded at a premium of 1.55 points at 404.80 (LTP) compared with spot closing of 403.25. The numbers of contracts traded were 40,346 (Provisional).
SBIN October 2020 futures traded at a premium of 0.80 points at 199.35 (LTP) compared with spot closing of 198.55. The numbers of contracts traded were 35,191 (Provisional).
HDFC Bank October 2020 futures traded at a discount of 2.70 points at 1232.50 (LTP) compared with spot closing of 1235.20. The numbers of contracts traded were 33,875 (Provisional).
Axis Bank October 2020 futures traded at a premium of 2.20 points at 471.00 (LTP) compared with spot closing of 468.80. The numbers of contracts traded were 29,601 (Provisional).
Bajaj Finance October 2020 futures traded at a premium of 7.50 points at 3332.65 (LTP) compared with spot closing of 3325.15. The numbers of contracts traded were 27,715 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with a contraction of 3,358 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 5,961units open interests. The maximum OI outstanding for Calls was at 12500 SP (27,813 units) and that for Puts was at 10500 SP (47,174 units). The respective Support and Resistance levels of Nifty are: Resistance 11,966.80 -- Pivot Point 11,886.00 -- Support --11,833.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.53) for October month contract. The top five scrips with highest PCR on Apollo Tyre (1.01), HDFC (1.00), Indusind Bank (0.97), Titan Company (0.91) and Vedanta (0.88).
Among most active underlying, Wipro witnessed an addition of 1,894 units of Open Interest in the October month futures contract, followed by Reliance Industries witnessed an addition of 291 units of Open Interest in the October month futures contract, Bajaj Finance witnessed a contraction of 662 units of Open Interest in the October month futures contract, HDFC Bank witnessed an addition of 4,115 units of Open Interest in the October month futures contract and ICICI Bank witnessed an addition of 2,689 units of Open Interest in the October month future contract (Provisional).
