Nifty extends gain for second day

The local benchmark -- Nifty -- extended its northward journey and ended the Tuesday’s trade with the gains of over a percent. Earlier, market made a positive start with the economic think-tank NCAER's statement that its Business Confidence Index (BCI) rose 41.1 per cent in the July-September 2020 period, indicating signs of improvement. Traders took note of reports that the Reserve Bank of India extended the deadline for banks to comply with new guidelines with respect to existing current accounts. Current accounts are widely used by businesses for their daily activities. A Frequently Asked Questions (FAQ) document will be issued to address all the issues raised by banks regarding implementation of the guidelines for existing current account. Index maintained its gains till the end of session, as the Finance Ministry released Rs 6,000 crore as the second tranche to 16 States and three Union territories under its special window to states for meeting the GST compensation cess shortfall. Finally, Nifty finished the session above its crucial 11800 level.

Most of the sectoral indices ended in green except Media and Realty. The top gainers from the F&O segment were ICICI Bank, Cadila Healthcare and Hindalco. On the other hand, the top losers were UPL, Muthoot Finance and Godrej Properties. 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 decreased by 3.84% and reached 24.24.The 50 share Nifty up by 144.35 points or 1.24% to settle at 11,813.50.

Nifty November 2020 futures closed at 11824.00 (LTP) on Tuesday, at a premium of 10.50 points over spot closing of 11813.50, while Nifty December 2020 futures ended at 11844.55(LTP), at a premium of 31.05 points over spot closing.  Nifty November futures saw an addtion of 6,350 units, taking the total open interest (Contracts) to 1,39,642. The near month derivatives contract will expire on November 26, 2020 (Provisional).

From the most active contracts, Reliance Industries November 2020 futures traded at a premium of 9.25 points at 1863.25 (LTP) compared with spot closing of 1854.00. The numbers of contracts traded were 92,955 (Provisional).

ICICI Bank November 2020 futures traded at a premium of 0.45 points at 445.95 (LTP) compared with spot closing of 445.50. The numbers of contracts traded were 43,218 (Provisional).

SBIN November 2020 futures traded at a premium of 0.65 points at 205.15 (LTP) compared with spot closing of 204.50. The numbers of contracts traded were 31,045 (Provisional).

HDFC November 2020 futures traded at a premium of 4.00 points at 2125.00 (LTP) compared with spot closing of 2121.00. The numbers of contracts traded were 27,407 (Provisional).

Sun Pharmaceutical Industries November 2020 futures traded at a premium of 2.40 points at 489.45 (LTP) compared with spot closing of 487.05. The numbers of contracts traded were 24,974 (Provisional).

Among, Nifty calls, 12000 SP from the November month expiry was the most active call with a contraction of 115 units open interests. Among Nifty puts, 11000 SP from the November month expiry was the most active put with an addition of 1,388 units open interests. The maximum OI outstanding for Calls was at 12000 SP (20,244 units) and that for Puts was at 11000 SP (36,642 units). The respective Support and Resistance levels of Nifty are: Resistance 11,858.70 -- Pivot Point 11,791.00 -- Support --11,745.80.

The Nifty Put Call Ratio (PCR) finally stood at (1.65) for November month contract. The top five scrips with highest PCR on ICICI Bank (1.03), Kotak Mahindra Bank (1.01), Bosch (1.00), Indusind Bank (0.91) and Havells (0.90).

Among most active underlying, Reliance Industries witnessed an addition of 3,235 units of Open Interest in the November month futures contract followed by ICICI Bank witnessed an addition of 4,441 units of Open Interest in the November month futures contract, SBIN witnessed an addition of 769 units of Open Interest in the November month futures contract, Bajaj Finance witnessed an addition of 1,582 units of Open Interest in the November month futures contract and HDFC witnessed an addition of 1,952 units of Open Interest in the November month futures contract (Provisional).