Barometer 50 share index - CNX Nifty staged a blockbuster performance on Tuesday vehemently rallying around a percentage in the session. After getting positive start, Indian equity Nifty showed strength throughout the day, as sentiment got a boost with Commerce and Industry Minister Piyush Goyal’s statement that the country is well poised to attract investments that wish to move out of China. He said the tax reforms introduced by the government recently will ensure investments come back to India.
The index traded in an optimistic mood for the remaining part of the day, as up-move got support with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the central bank saw economic growth slowdown in February, prompting it to cut rates ahead of the curve and wondered why markets were surprised with the decision to pause rate reduction. Noting that there is a need for an informed and objective discussion on the country's economy, Das said the RBI would do whatever is necessary to address growth slowdown, spikes in inflation as well to ensure good health of banks and non-bank lenders. In last leg of trade benchmark witnessed a spike up and touched fresh intraday high points, as Union Minister Nitin Gadkari approved changes in the Interest Subvention Scheme guidelines for micro, small and medium enterprises, and said the modifications are expected to boost their productivity through access to credit at reduced cost.
All the NSE sectoral indices ended in green, except Pharma and Realty. The top gainers from the F&O segment NIIT Technologies, Jindal Steel & Power and Tata Steel. On the other hand, the top losers were Torrent Pharmaceuticals, Mahindra & Mahindra Financial Services and Biocon. 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 6.69% and reached 12.51.The 50 share Nifty was up by 111.05 points or 0.92% to settle at 12,165.00.
Nifty December 2019 futures closed at 12199.00 (LTP) on Tuesday, at a premium of 34.00 points over spot closing of 12165.00, while Nifty January 2019 futures ended at 12251.45 (LTP), at a premium of 86.45 points over spot closing. Nifty December futures saw an addition of 0.50 million (mn) units, taking the total outstanding open interest (OI) to 14.02 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).
From the most active contracts, Tata Steel December 2019 futures traded at a premium of 1.85 points at 442.40 (LTP) compared with spot closing of 440.55. The numbers of contracts traded were 34,375 (Provisional).
Housing Development Finance Corporation December 2019 futures traded at a premium of 3.25 points at 2429.50 (LTP) compared with spot closing of 2426.25. The numbers of contracts traded were 32,445 (Provisional).
Reliance Industries December 2019 futures traded at a premium of 5.90 points at 1572.90 (LTP) compared with spot closing of 1567.00. The numbers of contracts traded were 30,529 (Provisional).
Indiabulls Housing Finance December 2019 futures traded at a discount of 0.10 points at 304.90 (LTP) compared with spot closing of 305.00. The numbers of contracts traded were 29,965 (Provisional).
State Bank of India December 2019 futures traded at a premium of 1.00 points at 334.55 (LTP) compared with spot closing of 333.55. The numbers of contracts traded were 20,831 (Provisional).
Among, Nifty calls, 12200 SP from the December month expiry was the most active call with an addition of 0.10 million open interests. Among Nifty puts, 12100 from the December month expiry was the most active put with an addition of 0.83 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.32 mn) and that for Puts was at 12000 SP (4.85 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,208.38 -- Pivot Point 12,139.37 -- Support --12,095.98.
The Nifty Put Call Ratio (PCR) finally stood at 1.45 for December month contract. The top five scrips with highest PCR on HDFC (1.27), Bajaj Finserv (1.17), Shriram Transport Finance Company (1.11) Kotak Mahindra Bank (1.11) and Tata Consultancy Services (1.10).
Among most active underlying, Reliance Industries witnessed an addition of 5.31 million units of Open Interest in the December month futures contract, followed by State Bank of India witnessing an addition of 2.29 million units of Open Interest in the December month contract, Housing Development Finance Corporation witnessed an addition of 3.00 million units of Open Interest in the December month contract, Tata Consultancy Services witnessed an addition of 1.15 million units of Open Interest in the December month contract and Tata Steel witnessed an addition of 2.53 million units of Open Interest in the December month future contract (Provisional).
