Rising for the third straight session, key equity benchmark -- Nifty -- ended Friday’s trade with gains of around a percent, buoyed by positive cues from European markets. The index traded on strong note throughout the session, with Union Minister Rao Inderjit Singh’s statement that Indian economy is resilient and there is no cause for apprehension on decline in GDP with a slew of steps directed at boosting it. He added that the government has been undertaking various measures to boost GDP growth. Traders paid no heed towards Moody's Investors Service report which has lowered its 2019 GDP growth forecast for India to 5.6 per cent as slow employment growth weighs on consumption. On the sectoral front, PSU bank stocks ended higher after reports suggested that the government is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices.
All the NSE sectoral indices ended in green. The top gainers from the F&O segment Union Bank of India, Indiabulls Housing Finance and Punjab National Bank. On the other hand, the top losers were Dr. Reddy's Laboratories, Jindal Steel & Power and Bharti Airtel. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,800 - 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 0.36% and reached 13.30. The 50 share Nifty was up by 114.90 points or 0.96% to settle at 12,086.70.
Nifty December 2019 futures closed at 12151.30 (LTP) on Friday, at a premium of 64.60 points over spot closing of 12086.70, while Nifty January 2019 futures ended at 12199.00 (LTP), at a premium of 112.30 points over spot closing. Nifty December futures saw an addition of 0.99 million (mn) units, taking the total outstanding open interest (OI) to 15.02 mn units. The near month derivatives contract will expire on December 26, 2019.
From the most active contracts, Indiabulls Housing Finance December 2019 futures traded at a discount of 0.70 points at 309.20 (LTP) compared with spot closing of 309.90. The numbers of contracts traded were 65,788 (Provisional).
State Bank of India December 2019 futures traded at a premium of 0.70 points at 333.85 (LTP) compared with spot closing of 333.15. The numbers of contracts traded were 34,473 (Provisional).
Tata Motors December 2019 futures traded at a premium of 0.75 points at 177.55 (LTP) compared with spot closing of 176.80. The numbers of contracts traded were 30,911 (Provisional).
Tata Consultancy Services December 2019 futures traded at a premium of 5.75 points at 2075.75 (LTP) compared with spot closing of 2070.00. The numbers of contracts traded were 27,251 (Provisional).
ICICI Bank December 2019 futures traded at a premium of 2.10 points at 539.20 (LTP) compared with spot closing of 537.10. The numbers of contracts traded were 24,440 (Provisional).
Among, Nifty calls, 12100 SP from the December month expiry was the most active call with a contraction of 0.02 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with an addition of 0.92 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.53 mn) and that for Puts was at 12000 SP (4.17 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,115.83 -- Pivot Point 12,069.72 -- Support -- 12,040.58.
The Nifty Put Call Ratio (PCR) finally stood at 1.40 for December month contract. The top five scrips with highest PCR on Shree Cement (1.56), Just Dial (1.24), Shriram Transport Finance Company (1.17), Axis Bank (1.05) and Tata Motors DVR (1.03).
Among most active underlying, State Bank of India witnessed a contraction of 3.82 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 0.05 million units of Open Interest in the December month contract, Axis Bank witnessed a contraction of 2.37 million units of Open Interest in the December month contract, Tata Motors witnessed a contraction of 0.74 million units of Open Interest in the December month contract and Tata Consultancy Services witnessed a contraction of 0.32 million units of Open Interest in the December month future contract (Provisional).
