Nifty -- finished the last trading day of the week with gains of above half a percent. The day began on a positive note, as traders took support with union health minister Harsh Vardhan’s statement that India is expected to have a COVID-19 vaccine in a few months and the country should be in the process of delivering it to people in the next six months. However, soon market touched its intraday low point but managed to cut its losses after Finance Minister Nirmala Sitharaman said V-shaped pattern of recovery is being seen in several high-frequency indicators, driven by various measures taken by the government to revive economic growth, hit hard by the outbreak of Covid-19 pandemic.
Market continued its fine- fettle trade till the end of session with Minister of State for Finance Anurag Singh Thakur’s statement that the Atmanirbhar Bharat Abhiyan package is aimed at making India a global hub of manufacturing and services. The government announced the Rs 20.97 lakh crore package in May largely focussed on supply side and long-term reforms in agriculture, labour, mining and defence sector to attract private sector investment. Finally, Nifty ended the day’s trade above its 11750 mark, as India's exports increased 5.99 percent year-on-year to $27.58 billion in September. Exports stood at $26.02 billion in September 2019.
Most of the sectoral indices ended in green except IT and Media. The top gainers from the F&O segment were JSW Steel, Tata Steel and JSPL. On the other hand, the top losers were UPL, Mindtree and HCL. 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 decreased by 1,87% and reached 21.65.The 50 share Nifty up by 82.10 points or 0.70% to settle at 11,762.45.
Nifty October 2020 futures closed at 11767.75 (LTP) on Friday, at a premium of 5.30 points over spot closing of 11762.45, while Nifty November 2020 futures ended at 11795.00 (LTP), at a premium of 32.55 points over spot closing. Nifty October futures saw a contraction of 4,226 units, taking the total open interest (Contracts) to 1,47,710. 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 4.15 points at 2182.80 (LTP) compared with spot closing of 2178.65. The numbers of contracts traded were 36,049 (Provisional).
HCL Technologies October 2020 futures traded at a discount of 3.45 points at 826.60 (LTP) compared with spot closing of 830.05. The numbers of contracts traded were 28,954 (Provisional).
HDFC Bank October 2020 futures traded at a premium of 3.40 points at 1205.90 (LTP) compared with spot closing of 1202.50. The numbers of contracts traded were 25,241 (Provisional).
UPL October 2020 futures traded at a premium of 1.75 points at 469.15 (LTP) compared with spot closing of 467.40. The numbers of contracts traded were 24,589 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 0.70 points at 396.30 (LTP) compared with spot closing of 395.60. The numbers of contracts traded were 24,146 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 685 units open interests. Among Nifty puts, 11500 SP from the October month expiry was the most active put with an addition of 3,405 units open interests. The maximum OI outstanding for Calls was at 12500 SP (32,182 units) and that for Puts was at 10500 SP (45,064 units). The respective Support and Resistance levels of Nifty are: Resistance 11,812.18 -- Pivot Point 11,740.02 -- Support -- 11,690.28.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for October month contract. The top five scrips with highest PCR on JSW Steel (0.91), Indusind Bank (0.81), HDFC (0.81), Axis Bank (0.75) and Hero Motocorp (0.74).
Among most active underlying, Reliance Industries witnessed an addition of 1,349 units of Open Interest in the October month futures contract followed by HCL Technologies witnessed an addition of 388 units of Open Interest in the October month futures contract, Infosys witnessed a contraction of 395 units of Open Interest in the October month futures contract, Bajaj Finance witnessed a contraction of 199 units of Open Interest in the October month futures contract and HDFC Bank witnessed an addition of 944 units of Open Interest in the October month futures contract (Provisional).
