Nifty ended Monday’s trade on a higher note despite giving up some of its intraday gains in the last leg of trade. Barometer continued its winning run for the fifth straight session and settles above 10,950-level. Index made a cautions start and soon gained momentum to trade comfortably in green trajectory, as investors remain encouraged with Union Commerce and Civil Aviation Minister Suresh Prabhu’s statement that India has the potential to be a $5 trillion economy in the next 7-8 years. Prabhu said his department had prepared a road map to make this possible by focusing on manufacturing, service sector and agriculture. Traders took support with central bank Governor Shaktikanta Das’ statement that the Reserve Bank of India (RBI) will make all efforts to maintain financial stability and to facilitate enabling conditions for sustainable and robust growth.
Market trimmed some of its gains in the last leg of trade, as market participants got anxious with India Ratings and Research’s latest report stating that the cumulative fiscal deficit of Indian states is expected to rise following the announcement of farm support packages ahead of national elections due by May. However, market ended the session on a positive note, as traders remain energized with a private report that India is likely to surpass the United Kingdom in the world’s largest economy rankings in 2019. The report projects real GDP growth of 1.6% for the UK, 1.7% for France and 7.6% for India in 2019.
Traders were seen piling up positions in Pharma, IT and Financial services, while selling was witnessed in Realty, PSU Bank and Auto. The top gainers from the F&O segment were United Breweries, Reliance Industries and SREI Infrastructure Finance. On the other hand, the top losers were South Indian Bank, Union Bank of India and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,500 -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 9.21% and reached 18.15. The 50-share Nifty was up by 54.90 points 0.50% to settle at 10,961.85.
Nifty January 2019 futures closed at 10969.70 on Monday, at a premium of 7.85 points over spot closing of 10961.85, while Nifty February 2019 futures ended at 10998.85, at a premium of 37.00 points over spot closing. Nifty January futures saw an addition of 0.23 million (mn) units, taking the total outstanding open interest (OI) to 24.79 mn units. The near month derivatives contract will expire on January 31, 2019.
From the most active contracts, Reliance Industries January 2019 futures traded at a premium of 2.90 points at 1237.90 compared with spot closing of 1235.00. The numbers of contracts traded were 65,883.
Sun Pharmaceutical Industries January 2019 futures traded at a premium of 1.30 points at 399.85 compared with spot closing of 398.55. The numbers of contracts traded were 47,566.
Kotak Mahindra Bank January 2019 futures traded at a discount of 3.55 points at 1270.45 compared with spot closing of 1274.00. The numbers of contracts traded were 31,605.
Larsen & Toubro January 2019 futures traded at a premium of 0.30 points at 1314.90 compared with spot closing of 1314.60. The numbers of contracts traded were 29,952.
HDFC Bank January 2019 futures traded at a premium of 3.90 points at 2149.30 compared with spot closing of 2145.40. The numbers of contracts traded were 29,057.
Among Nifty calls, 11,000 SP from the January month expiry was the most active call with a contraction of 0.34 million open interests. Among Nifty puts, 10,900 SP from the January month expiry was the most active put with an addition of 0.64 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.26mn) and that for Puts was at 10,500 SP (3.63mn). The respective Support and Resistance levels of Nifty are: Resistance 11,004.28 ---- Pivot Point 10,945.02 --- Support --- 10,902.58.
The Nifty Put Call Ratio (PCR) finally stood at 1.39 for January month contract. The top five scrips with highest PCR on OI were Shree Cement (4.00), KPIT Technologies (1.43), Reliance Industries (1.28), Infosys (1.19) and Page Industries (1.08).
Among most active underlying, Reliance Industries witnessed a contraction of 0.61 million units of Open Interest in the January month futures contract, followed by Kotak Mahindra Bank witnessing a contraction of 0.19 million units of Open Interest in the January month contract, HDFC Bank witnessed an addition of 0.28 million units of Open Interest in the January month contract, Sun Pharmaceutical Industries witnessed an addition of 4.13 million units of Open Interest in the January month contract and Larsen & Toubro witnessed a contraction of 0.56 million units of Open Interest in the January month future contract.
