S&P CNX -- Nifty -- closed the trading session 1.36% lower on Monday. Market made a negative start with RBI Governor Shaktikanta Das’ statement that the risk of a second wave of COVID-19 could put sand in the wheels of the nascent recovery. He also said the decision to cut benchmark repo rate would depend upon the evolving situation with regard to inflation which is currently above the tolerance level of the central bank. Further market extended its down side, as traders were cautious with PHD Chamber of Commerce and Industry’s (PHDCCI) statement that it expects India's GDP to contract by 7.9 per cent in the current financial year (FY21) and grow by 7.7 per cent in FY22, assessing that the worst is over and the economy is on the verge of a slow recovery. Traders failed to take any sense of relief as Reserve Bank of India (RBI) encourages investment in sovereign bonds as part of liquidity measures. The RBI is making longer-tenor sovereign bonds attractive again. Sentiments continued to hit with report that as many as 441 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of over Rs 4.35 lakh crore owing to delays and other reasons. Finally, Nifty ended the day’s trade below its 11800 marks.
All the sectoral indices ended in red. The top gainers from the F&O segment were HDFC Life Insurance Company, Nestle India and Kotak Mahindra Bank. On the other hand, the top losers were Coforge, Hero Motocorp and JSPL. 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 increased by 4.60% and reached 22.83.The 50 share Nifty down by 162.60 points or 1.36% to settle at 11,767.75.
Nifty September 2020 futures closed at 11777.00 (LTP) on Monday, at a premium of 9.25 points over spot closing of 11767.75, while Nifty October 2020 futures ended at 11793.50 (LTP), at a premium of 25.75 points over spot closing. Nifty September futures saw an addition of 6,401 units, taking the total open interest (Contracts) to 1,44,899. The near month derivatives contract will expire on September 24, 2020 (Provisional).
From the most active contracts, Reliance Industries September 2020 futures traded at a premium of 5.05 points at 2039.95 (LTP) compared with spot closing of 2034.90. The numbers of contracts traded were 48,607 (Provisional).
Kotak Mahindra Bank September 2020 futures traded at a discount of 0.15 points at 1410.75 (LTP) compared with spot closing of 1410.90. The numbers of contracts traded were 41,222 (Provisional).
ICICI Bank September 2020 futures traded at a premium of 0.50 points at 406.00(LTP) compared with spot closing of 405.50. The numbers of contracts traded were 39,543 (Provisional).
HDFC September 2020 futures traded at a premium of 2.75 points at 2072.80 (LTP) compared with spot closing of 2070.05. The numbers of contracts traded were 31,327 (Provisional).
Axis Bank September 2020 futures traded at a discount of 0.45 points at 492.55 (LTP) compared with spot closing of 493.00. The numbers of contracts traded were 27,303 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 21,423 units open interests. Among Nifty puts, 11700 SP from the October month expiry was the most active put with an addition of 4,753 units open interests. The maximum OI outstanding for Calls was at 12500 SP (74,634 units) and that for Puts was at 10500 SP (49,389 units). The respective Support and Resistance levels of Nifty are: Resistance 11,903.17 -- Pivot Point 11,807.43 -- Support -- 11,672.02.
The Nifty Put Call Ratio (PCR) finally stood at (0.85) for October month contract. The top five scrips with highest PCR on Apollo Tyers (1.16), HDFC (1.07), Axis Bank (0.96), Powergrid (0.90) and Tata Steel (0.89).
Among most active underlying, Reliance Industries witnessed an addition of 3,668 units of Open Interest in the October month futures contract followed by Kotak Mahindra Bank witnessed an addition of 4,266 units of Open Interest in the October month futures contract, ICICI Bank witnessed an addition of 13,759 units of Open Interest in the October month futures contract, HDFC witnessed an addition of 13,745 units of Open Interest in the October month futures contract and HDFC Bank witnessed an addition of 3,876 units of Open Interest in the October month futures contract (Provisional).
