Nifty ends marginally in green on first day of the New Year

After witnessing downfall in the previous sessions, Key Indian benchmarks -- Nifty -- ended first day of the New Year in green territory with marginal gains. Barometer made a positive start, as sentiment got a boost with the report India's current account deficit (CAD) narrowed to 0.9 per cent of GDP, or $6.3 billion, in the September 2019 quarter, on account of lower trade deficit. It had stood at 2.9 per cent of gross domestic product (GDP), or $19 billion, in the corresponding quarter of 2018-19. On a sequential basis, CAD had printed 2 per cent of GDP, or $14.2 billion, in the June 2019 quarter. However, market started declining but it managed to keep its head above neutral line, taking support from PHD Chamber of Commerce and Industry (PHDCCI) expects India's economy to rebound in 2020 and inflation to remain benign on account of reforms such as reduction in corporate tax.

Market continued its cautious run, as traders paid no heed towards Controller General of Accounts latest data showing that Fiscal deficit of the Union government rose to 114.8 per cent of the target in the first eight months of the fiscal year. Finally nifty ended its cautious run with marginal gain of 0.12%, as street got some relief with a survey report that with bullish hiring sentiments, private sector players are likely to create seven lakh jobs and the overall increase in salaries is projected to be around 8 percent in the New Year.

Traders were seen piling up positions in Financial services, FMGC and IT, while selling was witnessed in Bank, Auto and Media. The top gainers from the F&O segment were Mahindra & Mahindra Financial Services, Adani Ports and Special Economic Zone and Adani Power. On the other hand, the top losers were Escorts, Titan Company and Shriram Transport Finance Company. In the index option segment, maximum OI continues to be seen in the 12250 - 12,700 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 decreased by 0.60% and reached 11.59. The 50 share Nifty was up by 14.05 points or 0.12% to settle at 12,182.50.

Nifty January 2020 futures closed at 12251.90 (LTP) on Wednesday, at a premium of 69.40 points over spot closing of 12182.50, while Nifty February 2020 futures ended at 12291.60 (LTP), at a premium of 109.10 points over spot closing. Nifty December futures saw an addition of 0.37 million (mn) units, taking the total outstanding open interest (OI) to 12.48 mn units. The near month derivatives contract will expire on January 30, 2020 (Provisional).

From the most active contracts, Reliance Industries January 2020 futures traded at a premium of 10.15 points at 1521.95 (LTP) compared with spot closing of 1511.80. The numbers of contracts traded were 17,139 (Provisional).

Tata Steel January 2020 futures traded at a premium of 2.60 points at 470.40 (LTP) compared with spot closing of 467.80. The numbers of contracts traded were 13,486 (Provisional).

State Bank of India January 2020 futures traded at a premium of 1.90 points at 336.90 (LTP) compared with spot closing of 335.00. The numbers of contracts traded were 13,177 (Provisional).

Indiabulls Housing Finance January 2020 futures traded at a discount of 5.10 points at 306.40 (LTP) compared with spot closing of 311.50. The numbers of contracts traded were 12,910 (Provisional).

Larsen & Toubro January 2020 futures traded at a premium of 8.25 points at 1318.40 (LTP) compared with spot closing of 1310.15. The numbers of contracts traded were 12,025 (Provisional).

Among, Nifty calls, 12300 SP from the January month expiry was the most active call with an addition of 0.43 million open interests. Among Nifty puts, 12200 from the January month expiry was the most active put with a contraction of 0.009 units open interests. The maximum OI outstanding for Calls was at 12500 SP (2.32 mn) and that for Puts was at 12000 SP (3.54 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,214.70 -- Pivot Point 12,190.00 -- Support -- 12,157.80.

The Nifty Put Call Ratio (PCR) finally stood at 1.14 for January month contract. The top five scrips with highest PCR on UltraTech Cement (1.17), Just Dial (1.10), Mahindra & Mahindra Fin. Services (1.02), Indian Oil Corporation (0.99) and Tata Consultancy Services (0.98).

Among most active underlying, Reliance Industries witnessed an addition of 1.25 million units of Open Interest in the January month futures contract, followed by State Bank of India witnessing a contraction of 0.96 million units of Open Interest in the January month contract, Titan Company witnessed an addition of 1.77 million units of Open Interest in the January month contract, Adani Ports and Special Economic Zone witnessed a contraction of 0.76 million units of Open Interest in the January month contract and Tata Steel witnessed a contraction of 0.78 million units of Open Interest in the January month future contract (Provisional).