Nifty ends at record closing high for fourth consecutive day

NSE gauge Nifty50 -- ended the highly volatile trading session in positive terrain at record closing high. The benchmark got soft opening with private report indicating that the Reserve Bank of India to cut the repo rate to 4.9% by March 2020 and 4.35% by September 2020 if global growth slows, and also said fiscal deficit is anticipated to slip to 3.8% of the GDP this year. Market started adding gains with DPIIT Secretary Guruprasad Mohapatra expressing optimism that India will soon break into the top 50 in the World Bank's ease of doing business ranking.

Market soon turned volatile, as Fitch Ratings cut India's GDP growth forecast for 2019-20 fiscal year to 4.6 percent on the deterioration in business and consumer confidence. However, market concluded the trading session by keeping its head above neutral line as some anxiety spread among the investors after investments through participatory notes (P-notes) in the Indian capital market dropped to Rs 69,670 crore at the end of November. The total value of investments via P-notes in the Indian markets (including equity, debt, and derivatives) declined by Rs 7,103 crore to Rs 69,670 crore by the end of November from Rs 76,773 crore at October-end.

Most of the the NSE sectoral indices ended in green, except Auto, FMGC and Pharma. The top gainers from the F&O segment Dish TV India, Union Bank of India and Torrent Power. On the other hand, the top losers were Tata Motors, Vedanta and Kotak Mahindra Bank. In the index option segment, maximum OI continues to be seen in the 12100 -12,500 calls and 11,900- 12,350 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.67% and reached 12.32.The 50 share Nifty was up by 12.10 points or 0.10% to settle at 12,271.80.

Nifty December 2019 futures closed at 12290.25 (LTP) on Friday, at a premium of 18.45 points over spot closing of 12271.80, while Nifty January 2019 futures ended at 12345.00 (LTP), at a premium of 73.20 points over spot closing.  Nifty December futures saw an addition of 0.57 million (mn) units, taking the total outstanding open interest (OI) to 13.88 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 discount of  0.10 points at 299.00 (LTP) compared with spot closing of 299.10. The numbers of contracts traded were 46,711 (Provisional).

ICICI Bank December 2019 futures traded at a discount of 0.60 points at 545.50 (LTP) compared with spot closing of 546.10. The numbers of contracts traded were 41,320 (Provisional).

Yes Bank December 2019 futures traded at a discount of 0.30 points at 50.50 (LTP) compared with spot closing of 50.80. The numbers of contracts traded were 36,745 (Provisional).

State Bank of India December 2019 futures traded at a premium of 1.05 points at 338.30 (LTP) compared with spot closing of 337.25. The numbers of contracts traded were 36,711 (Provisional).

Tata Steel December 2019 futures traded at a premium of 0.25 points at 462.00 (LTP) compared with spot closing of 461.75. The numbers of contracts traded were 31,093 (Provisional).

Among, Nifty calls, 12300 SP from the December month expiry was the most active call with an addition of 0.50 million open interests. Among Nifty puts, 12200 from the December month expiry was the most active put with an addition of 0.53 units open interests. The maximum OI outstanding for Calls was at 12300 SP (2.61 mn) and that for Puts was at 12200 SP (4,00 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,292.88 -- Pivot Point 12,272.82 -- Support --12,251.73.

The Nifty Put Call Ratio (PCR) finally stood at 1.65 for December month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.26), Shriram Transport Finance Company (1.25), Indraprastha Gas (1.20), Hindalco Industries (1.13) and Bajaj Finserv (1.11).

Among most active underlying, State Bank of India witnessed an addition of 7.67 million units of Open Interest in the December month futures contract, followed by ICICI Bank witnessing an addition of 19.99 million units of Open Interest in the December month contract, Reliance Industries witnessed an addition of 1.03 million units of Open Interest in the December month contract, Tata Consultancy Services witnessed an addition of 0.43 million units of Open Interest in the December month contract and Tata Steel witnessed an addition of 4.41 million units of Open Interest in the December month future contract (Provisional).