Nifty breaks 3-day falling streak, ends above 12,200 mark

After witnessing drubbing in the previous three trading sessions, domestic index, Nifty staged a strong rebound on Friday, as investors rushed to buy beaten down stocks. The index surged 119 points to close above the psychological level of 12,200. Market started the day on a positive note, as sentiments remained upbeat with report that the Reserve Bank of India has announced simultaneous purchase and sale of government securities through special open market operations (OMOs) for Rs 10,000 crore each on December 30 following a review of liquidity situation. Market continued gaining rally throughout the session, taking support from Food & Agriculture Organisation’s (FAO) latest data showing that select agri and agri-based commodities such as meat, milk and fruits, among others, present export opportunity worth over $97 billion (about Rs 6.9 lakh crore) for India.

All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment Page Industries, MRF and Bank of Baroda. On the other hand, the top losers were Vodafone Idea, NIIT Technologies and Yes Bank. In the index option segment, maximum OI continues to be seen in the 12,300 - 12,600 calls and 11,900 - 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 6.06% and reached 10.44. The 50 share Nifty was up by 119.25 points or 0.98% to settle at 12,245.80.

Nifty January 2020 futures closed at 12326.75 (LTP) on Friday, at a premium of 80.95 points over spot closing of 12245.80, while Nifty February 2020 futures ended at 12365.00 (LTP), at a premium of 119.20 points over spot closing. Nifty December futures saw an addition of 1.42 million (mn) units, taking the total outstanding open interest (OI) to 12.74 mn units. The near month derivatives contract will expire on January 30, 2020 (Provisional).

From the most active contracts, State Bank of India January 2020 futures traded at a premium of 2.65 points at 339.85 (LTP) compared with spot closing of 337.20. The numbers of contracts traded were 27,377 (Provisional).

Indiabulls Housing Finance January 2020 futures traded at a discount of 3.70 points at 295.65 (LTP) compared with spot closing of 299.35. The numbers of contracts traded were 26,758 (Provisional).

Reliance Industries January 2020 futures traded at a premium of 9.10 points at 1551.10 (LTP) compared with spot closing of 1542.00. The numbers of contracts traded were 23,756 (Provisional).

ICICI Bank January 2020 futures traded at a premium of 3.80 points at 553.30 (LTP) compared with spot closing of 549.50. The numbers of contracts traded were 17,969 (Provisional).

Axis Bank January 2020 futures traded at a premium of 4.80 points at 765.70 (LTP) compared with spot closing of 760.90. The numbers of contracts traded were 17,184 (Provisional).

Among, Nifty calls, 12500 SP from the January month expiry was the most active call with an addition of 0.41 million open interests. Among Nifty puts, 12200 from the January month expiry was the most active put with an addition of 0.50 units open interests. The maximum OI outstanding for Calls was at 12500 SP (1.92 mn) and that for Puts was at 12000 SP (3.41 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,283.53 -- Pivot Point 12,220.72 -- Support -- 12,182.98.

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for January month contract. The top five scrips with highest PCR on UltraTech Cement (1.60), Mahindra & Mahindra Finance Services (1.56), Cummins India (1.52), Hindustan Petroleum Corporation (1.47) and Justdail (1.39).

Among most active underlying, State Bank of India witnessed an addition of 5.17 million units of Open Interest in the January month futures contract, followed by Reliance Industries witnessing an addition of 0.45 million units of Open Interest in the January month contract, Axis Bank witnessed an addition of 2.62 million units of Open Interest in the January month contract, ICICI Bank witnessed an addition of 4.09 million units of Open Interest in the January month contract and Bajaj Finance witnessed an addition of 0.14 million units of Open Interest in the January month future contract.