S&P CNX -- Nifty -- ended the day’s trade below its crucial 11,800 levels on Wednesday. Market made a cautions start with the central bank’s statement that Indian states are racking up more debt to fund the prospect of wider budget deficits as they step up spending to fight the virus pandemic. Further, market traded near neutral line in red zone, as traders were concerned with Finance Minister Nirmala Sitharaman’s statement that there were visible signs of revival in the economy but the GDP growth may be in the negative zone or near zero in the current fiscal (FY21). She also said the economy saw a contraction in the April-June quarter, but demand has picked up in the festival season.
Traders overlooked Niti Aayog Vice Chairman Rajiv Kumar's statement that India’s economic growth would be in positive territory in the second half of this fiscal, and will do even better than a large part of the world in 2021-22. In late afternoon session, index added more losses to end the session in negative territory after UNCTAD said that Global foreign direct investment (FDI) flows fell 49% in the first half of 2020 compared to 2019 due to the economic fallout from COVID-19.
All the sectoral indices ended in red. The top gainers from the F&O segment were Bharti Airtel, UPL and RBL Bank. On the other hand, the top losers were Vedanta, Amara Raja Batteries and DLF. In the index option segment, maximum OI continues to be seen in the 11,700 - 12,500 calls and 10,900 - 11,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.88% and reached 23.28.The 50 share Nifty down by 159.80 points or 1.34% to settle at 11,729.60.
Nifty October 2020 futures closed at 11719.70 (LTP) on Wednesday, at a discount of 9.90 points over spot closing of 11729.60, while Nifty November 2020 futures ended at 11733.00 (LTP) , at a premium of 3.40 points over spot closing. Nifty October futures saw an addition of 12,058 units, taking the total open interest (Contracts) to 1,17,138. The near month derivatives contract will expire on October 29, 2020 (Provisional).
From the most active contracts, Bharti Airtel October 2020 futures traded at a discount of 0.10 points at 447.90 (LTP) compared with spot closing of 448.00. The numbers of contracts traded were 87,233 (Provisional).
Reliance Industries October 2020 futures traded at a premium of 3.85 points at 2012.80 (LTP) compared with spot closing of 2008.95. The numbers of contracts traded were 35,080 (Provisional).
ICICI Bank October 2020 futures traded at a premium of 0.65 points at 397.65 (LTP) compared with spot closing of 397.00. The numbers of contracts traded were 31,233 (Provisional).
HDFC October 2020 futures traded at a premium of 1.75 points at 1971.75 (LTP) compared with spot closing of 1970.00. The numbers of contracts traded were 30,919 (Provisional).
Axis Bank October 2020 futures traded at a premium of 0.90 points at 505.90 (LTP) compared with spot closing of 505.00. The numbers of contracts traded were 28,715 (Provisional).
Among, Nifty calls, 12000 SP from the October month expiry was the most active call with an addition of 29,029 units open interests. Among Nifty puts, 11800 SP from the October month expiry was the most active put with an addition of 2,205 units open interests. The maximum OI outstanding for Calls was at 12000 SP (87,743 units) and that for Puts was at 11500 SP (55,941 units). The respective Support and Resistance levels of Nifty are: Resistance 11,877.72 -- Pivot Point 11,781.28 -- Support -- 11,633.17.
The Nifty Put Call Ratio (PCR) finally stood at (0.92) for October month contract. The top five scrips with highest PCR on Kotak Mahindra Bank (1.46), MRF (1.31), Tata Steel (1.06), Apollo Tyers (1.06) and Shriram Transport Finance Company (1.04).
Among most active underlying, Bharti Airtel witnessed a contraction of 1,651 units of Open Interest in the October month futures contract followed by Reliance Industries witnessed an addition of 2,600 units of Open Interest in the October month futures contract, DR. Reddy’s witnessed an addition of 298 units of Open Interest in the October month futures contract, HDFC Bank witnessed an addition of 4,898 units of Open Interest in the October month futures contract and HDFC witnessed an addition of 12,748 units of Open Interest in the October month futures contract (Provisional).
