Nifty repeated its tremendous run for second straight day on Wednesday, closing the session above its crucial 12,200 level. The market made a positive start and continued its gaining momentum, as traders took encouragement with Defence Minister Rajnath Singh’s statement that India is impacted to some extent by the global economic slowdown but expressed confidence that the country will come out of the difficult situation within a short time. Nifty managed to keep its head above neutral line throughout the day, taking support with a report stating that the Department of Revenue is eyeing to collect at least Rs 1.10 lakh crore as monthly Goods and Services Tax (GST) collection for the next four months each.
Further, market added gains in the second half of the session, as market mood remained upbeat with Union Minister Nitin Gadkari’s statement that efforts are on to bolster the economy and create five crore jobs. He also said the government is according high priority to the economy but at the same time, security issues are also important and the government cannot work in silos. Finally, market managed to hit fresh record closing high, amid Crisil’s report that farmers are likely to generate 7-9% more in profit during the crop year 2019-20 (July-June) because of an increase in overall prices of farm commodities on lower kharif yield and higher productivity from rabi crops.
All the NSE sectoral indices ended in green, except Media and PSU Bank. The top gainers from the F&O segment Max Financial Services, Mahindra & Mahindra and Motherson Sumi Systems. On the other hand, the top losers were Vodafone Idea, Tata Global Beverages and GMR Infrastructure. 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 1.44% and reached 12.33.The 50 share Nifty was up by 56.65 points or 0.47% to settle at 12,221.65.
Nifty December 2019 futures closed at 12247.40 (LTP) on Wednesday, at a premium of 25.75 points over spot closing of 12221.65, while Nifty January 2019 futures ended at 12303.00(LTP), at a premium of 81.35 points over spot closing. Nifty December futures saw an addition of 0.86 million (mn) units, taking the total outstanding open interest (OI) to 14.44 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 0.60 points at 443.10 (LTP) compared with spot closing of 442.50. The numbers of contracts traded were 56,737 (Provisional).
Tata Consultancy Services December 2019 futures traded at a discount of 2.70 points at 2164.10 (LTP) compared with spot closing of 2166.80. The numbers of contracts traded were 33,439 (Provisional).
Tata Motors December 2019 futures traded flat at 175.00 (LTP) with spot closing of 175.00. The numbers of contracts traded were 30,511 (Provisional).
Indiabulls Housing Finance December 2019 futures traded at a discount of 1.15 points at 301.70 (LTP) compared with spot closing of 302.85. The numbers of contracts traded were 28,180 (Provisional).
State Bank of India December 2019 futures traded at a premium of 0.90 points at 328.10 (LTP) compared with spot closing of 327.20. The numbers of contracts traded were 21,787 (Provisional).
Among, Nifty calls, 12200 SP from the December month expiry was the most active call with an addition of 0.003 million open interests. Among Nifty puts, 12100 from the December month expiry was the most active put with an addition of 0.98 units open interests. The maximum OI outstanding for Calls was at 12000 SP (21.33 mn) and that for Puts was at 12000 SP (50.32 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,251.75 --Pivot Point 12,207.60 -- Support --12,177.50.
The Nifty Put Call Ratio (PCR) finally stood at 1.51 for December month contract. The top five scrips with highest PCR on HDFC (1.41), Bajaj Finserv (1.26), Shriram Transport Finance Company (1.25) Bharat Forge (1.19) and Indraprastha Gas (1.11).
Among most active underlying, State Bank of India witnessed an addition of 1.37 million units of Open Interest in the December month futures contract, followed by Tata Steel witnessing an addition of 1.24 million units of Open Interest in the December month contract, Tata Consultancy Services witnessed an addition of 1.82 million units of Open Interest in the December month contract, Reliance Industries witnessed an addition of 0.61 million units of Open Interest in the December month contract and Tata Motors witnessed an addition of 9.21 million units of Open Interest in the December month future contract (Provisional).
