Nifty ends higher for second straight session

Nifty repeated its tremendous run for second straight session on Thursday with surpassing its crucial 12,150 level. After getting positive start, market soon turned volatile but managed to trade above neutral line, as traders got support with Finance Minister Nirmala Sitharaman’s statement that economic growth might have slowed down but there was no impending threat of a recession. Defending the current state of the Indian economy, the finance minister said that every step that had been taken by the government was aimed at development. Traders paid no heed towards report indicating that a majority of economy watchers were quick to point out that Q2FY20 growth rate will be lower than the 5 per cent rise seen in April-June quarter, especially due to the havoc caused by Monsoon rains across India.

Further, Indices added some more gain on the street in the afternoon deals, as sentiment got a boost with the report that the rise of Asia on the back of its rapid industrialisation will lead to a shift in the balance of global economic power by 2050. In the late trade, market witnessed a spike up to touch intraday high point, aided with Union Minister Piyush Goyal’s statement that the Centre has chalked out a plan envisaging an investment of Rs 100 lakh crore in the infrastructure sector over the next five years.

Most of the NSE sectoral indices ended in green, except Media and Auto. The top gainers from the F&O segment Indiabulls Housing Finance, Bharti Infratel and Vodafone Idea. On the other hand, the top losers were Cummins India, Zee Entertainment Enterprises and Bosch. In the index option segment, maximum OI continues to be seen in the 12200 - 12,700 calls and 11,700 - 12,200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.31% and reached 13.98.The 50 share Nifty was up by 50.45 points or 0.42% to settle at 12,151.15.

Nifty December 2019 futures closed at 12,186.00 (LTP) on Thursday, at a premium of 34.85 points over spot closing of 12,151.15, while Nifty January 2019 futures ended at 12,223.05 (LTP), at a premium of 71.90 points over spot closing. Nifty December futures saw an addition of 3.75 million (mn) units, taking the total outstanding open interest (OI) to 15.08 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).

From the most active contracts, Indiabulls Housing Finance December 2019 futures traded at a premium of 0.35 points at 341.75 (LTP) compared with spot closing of 341.40. The numbers of contracts traded were 1,16,693 (Provisional).

Yes Bank December 2019 futures traded at a premium of 0.30 points at 70.70 (LTP) compared with spot closing of 70.40. The numbers of contracts traded were 56,059 (Provisional).

Zee Entertainment Enterprises December 2019 futures traded at a premium of 1.55 points at 313.05 (LTP) compared with spot closing of 311.50. The numbers of contracts traded were 40,855 (Provisional).

ICICI Bank December 2019 futures traded at a discount of 0.60 points at 517.50 (LTP) compared with spot closing of 518.10. The numbers of contracts traded were 40,155 (Provisional).

Reliance Industries December 2019 futures traded at a premium of 6.00 points at 1588.00 (LTP) compared with spot closing of 1582.00. The numbers of contracts traded were 35,897 (Provisional).

Among, Nifty calls, 12500 SP from the December month expiry was the most active call with an addition of 0.25 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with an addition of 0.71 units open interests. The maximum OI outstanding for Calls was at 12500 SP (17.18 mn) and that for Puts was at 12000 SP (30.42 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,173.32 -- Pivot Point 12,136.63 -- Support -- 12,114.47.

The Nifty Put Call Ratio (PCR) finally stood at 1.19 for December month contract. The top five scrips with highest PCR on MindTree (3.65), Mahindra & Mahindra Financial Services (2.19), PVR (2.04), Ramco Cements (2.00) and UltraTech Cement (1.64).

Among most active underlying, State Bank of India witnessed an addition of 23.47 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 10.51 million units of Open Interest in the December month contract, ICICI Bank witnessed an addition of 16.86 million units of Open Interest in the December month contract, Indiabulls Housing Finance witnessed an addition of 7.40 million units of Open Interest in the December month contract and Axis Bank witnessed an addition of 9.54 million units of Open Interest in the December month future contract (Provisional).