Nifty extends bull run for fourth consecutive day

The local benchmark -- Nifty – ended the day’s trade above its psychological level of 11,000. Market made positive start with the Agriculture Ministry’s statement that there has been no impact of COVID-19 pandemic on kharif (summer) sowing as the total area planted to rice and other crops has increased by 21.20% to 691.86 lakh hectare so far in the current season. Further, index trimmed some of its gains, as foreign portfolio investors (FPI) remained net sellers in Indian markets in July so far as they pulled out Rs 9,015 crore from equities and debt securities with the surging markets providing profit booking opportunity amid concerns over rising cases of Covid-19. However, market maintain its gaining momentum, as traders found support with the latest data from the Reserve Bank of India (RBI) showing that forex reserves rose $3.1 billion to hit a record high of $516.36 billion for the week ended July 10. In late afternoon deals, market extended its upside to trade above 11000 mark with World Federation of Direct Selling Associations’ (WFDSA) ‘The Global Direct Selling - 2019 Retail Sales report’ stating that the Indian direct selling industry has recorded sales of $2.47 billion in 2019, reporting a growth of 12.1 percent. Finally, Nifty finished first day of week with the gains of above a percent.

All of the NSE sectoral indices ended in green except Pharma. The top gainers from the F&O segment were Mahindra & Mahindra Financial Services, Adani Enterprises and Info Edge (India). On the other hand, the top losers were Sun Pharmaceutical Industries, Lupin and SBI Life Insurance Company. In the index option segment, maximum OI continues to be seen in the 11,300 - 11,700 calls and 9700 - 10300 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.30% and reached 24.71. The 50 share Nifty up by 120.50 points or 1.11% to settle at 11,022.20.

Nifty July 2020 futures closed at 11010.25 (LTP) on Monday, at a discount of 11.95 points over spot closing of 11022.20, while Nifty August 2020 futures ended at 11017.60 (LTP), at a discount of 4.60 points over spot closing. Nifty July futures saw an addition of 0.27 million (mn) units, taking the total outstanding open interest (OI) to 10.77 mn units. The near month derivatives contract will expire on July 30, 2020 (Provisional).

From the most active contracts, HDFC Bank July 2020 futures traded at a discount of 4.85 points at 1125.15 (LTP) compared with spot closing of 1130.00. The numbers of contracts traded were 54,839 (Provisional).

Mahindra & Mahindra Financial Services July 2020 futures traded at a discount of 9.15 points at 219.75 (LTP) compared with spot closing of 228.90. The numbers of contracts traded were 48,501 (Provisional).

Bajaj Finance July 2020 futures traded at a premium of 4.00 points at 3440.00 (LTP) compared with spot closing of 3436.00. The numbers of contracts traded were 43,804 (Provisional).

Reliance Industries July 2020 futures traded at a premium of 3.40 points at 1925.35 (LTP) compared with spot closing of 1921.95. The numbers of contracts traded were 39,350 (Provisional).

ICICI Bank July 2020 futures traded at a premium of 0.35 points at 362.45 (LTP) compared with spot closing of 362.10. The numbers of contracts traded were 38,456 (Provisional).

Among, Nifty calls, 11000 SP from the July month expiry was the most active call with a contraction of 0.057 million open interests. Among Nifty puts, 10500 SP from the July month expiry was the most active put with an addition of 0.078 million open interests. The maximum OI outstanding for Calls was at 11500 SP (2.72 mn) and that for Puts was at 10000 SP (3.53 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,055.73 -- Pivot Point 11,004.37 -- Support -- 10,970.83.

The Nifty Put Call Ratio (PCR) finally stood at (1.68) for July month contract. The top five scrips with highest PCR on Wipro (2.01), Infosys (1.58), Piramal Enterprises (1.26), Mahindra & Mahindra (1.10) and Bajaj Finance (1.07).

Among most active underlying, Reliance Industries witnessed an addition of 0.97 million units of Open Interest in the July month futures contract, followed by HDFC Bank witnessing an addition of 1.80 million units of Open Interest in the July month contract, Bajaj Finance witnessed an addition of 0.08 million units of Open Interest in the July month contract, Infosys witnessed a contraction of 0.71 million units of Open Interest in the July month contract and ICICI Bank witnessed a contraction of 2.63 million units of Open Interest in the July month future contract (Provisional).