Snapping its eight days winning streak, key benchmark Nifty ended the day’s trade below its crucial 12,700 levels. Key index begun day on a somber note, as Reserve Bank of India (RBI) official has said that the country’s GDP is likely to contract by 8.6 percent for second quarter of current financial year (Q2FY21), which means India will enter into a recession for the first time in history in the first half of this fiscal with two successive quarters of negative growth due to the COVID-19 pandemic. Further, market continued weak trade with rating agency ICRA’s report that the aggregate debt of 12 major states is estimated to worsen significantly, and their capital spending might decline sharply because of lower-than-expected goods and services tax (GST) revenue and shortfall in Centre’s devolution. It added that this could lead to a 1-2 per cent contraction in Q4FY21. Index extended its losses till the end of the session even after Reserve Bank of India said the Indian economy could break out of contraction and return to positive growth by the third quarter of the current financial year if the growth momentum sustains. Finally, Nifty ended sluggish day of trade with cut of around half a percent.
Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Metal, Bank and PSU Bank sector stocks. The top gainers from the F&O segment were Indiabulls Housing Finance, Cummins India and Exide Industries. On the other hand, the top losers were Apollo Hospitals, Bank of Baroda and SBIN. In the index option segment, maximum OI continues to be seen in the 12500 - 13,700 calls and 11,900 - 12,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 6.41% and reached 20.62.The 50 share Nifty down by 58.35 points or 0.46% to settle at 12,690.80.
Nifty November 2020 futures closed at 12703.55 (LTP) on Thursday, at a premium of 12.75 points over spot closing of 12690.80, while Nifty December 2020 futures ended at 12720.15 (LTP), at a premium of 29.35 points over spot closing. Nifty November futures saw an addition of 1,999 units, taking the total open interest (Contracts) to 1,63,456. 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 8.25 points at 1990.00 (LTP) compared with spot closing of 1981.75. The numbers of contracts traded were 39,599 (Provisional).
Aurobindo Pharma November 2020 futures traded at a premium of 2.30 points at 842.30 (LTP) compared with spot closing of 840.00. The numbers of contracts traded were 28,271 (Provisional).
Axis Bank November 2020 futures traded at a premium of 0.80 points at 598.90 (LTP) compared with spot closing of 598.10. The numbers of contracts traded were 27,103 (Provisional).
Bajaj Finance November 2020 futures traded at a discount of 21.00 points at 4282.00 (LTP) compared with spot closing of 4303.00. The numbers of contracts traded were 25,011 (Provisional).
SBIN November 2020 futures traded at a premium of 0.85 points at 227.90 (LTP) compared with spot closing of 227.05. The numbers of contracts traded were 21,708 (Provisional).
Among, Nifty calls, 13000 SP from the November month expiry was the most active call with an addition of 1757 units open interests. Among Nifty puts, 12000 SP from the November month expiry was the most active put with an addition of 2,701 units open interests. The maximum OI outstanding for Calls was at 13000 SP (27,149 units) and that for Puts was at 12000 SP (46,219 units). The respective Support and Resistance levels of Nifty are: Resistance 12,746.35 -- Pivot Point 12,685.60 -- Support --12,630.05.
The Nifty Put Call Ratio (PCR) finally stood at (1.53) for November month contract. The top five scrips with highest PCR on Bajaj Finance (1.37), Kotak Mahindra Bank (1.29), Cholamandalam Investment (1.23), HDFC Bank (1.21) and Havells (1.13).
Among most active underlying, Reliance Industries witnessed an addition of 4,925 units of Open Interest in the November month futures contract followed by Bajaj Finance witnessed an addition of 1,173 units of Open Interest in the November month futures contract, Axis Bank witnessed an addition of 3,615 units of Open Interest in the November month futures contract, Aurobindo Pharma witnessed an addition of 485 units of Open Interest in the November month futures contract and SBIN witnessed a contraction of 629 units of Open Interest in the November month futures contract (Provisional).
