Nifty ends at record closing high

Key equity benchmark -- Nifty -- finished second trading day of 2020 in green terrain with gains of 0.82%. After getting a positive start, benchmark equity index continued its north-ward journey throughout the day, as traders took encouragement with the government data showing that Goods and Services Tax (GST) revenue collection remained above Rs 1 lakh crore mark for the second month in a row with December mop-up rising to Rs 1.03 lakh crore as compared to the year-ago period. Further, market extended its initial gains, as sentiment on the street remained positive with the commerce and industry ministry data showing that foreign direct investment (FDI) into India grew 15% to $26 billion during the first half of the current financial year. Inflow of FDI during April-September of 2018-19 stood at $22.66 billion.

Local market continued upward rally in second half of the session, taking support from a private business survey that India's factory activity expanded at its fastest pace in seven months in December as a jump in new orders prompted companies to ramp up production. The Nikkei Manufacturing Purchasing Managers' Index rose to 52.7 in the final month of 2019 from November's 51.2. Finally, Nifty ended the wonderful day of trade at record closing high, as sentiment got a boost with private report stating that private equity investments in the country are expected to grow 15-20 per cent in 2020 as investors pin hopes on the country's long growth potential after a blockbuster year when credit flow through regular channels turned slow.

Most of the the NSE sectoral indices ended in green, except IT. The top gainers from the F&O segment Steel Authority of India, NBCC (India) and National Aluminium Company. On the other hand, the top losers were Marico, Eicher Motors and TVS Motor 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 0.93% and reached 11.49.The 50 share Nifty was up by 99.70 points or 0.82% to settle at 12,282.20.

Nifty January 2020 futures closed at 12338.00 (LTP) on Thursday, at a premium of 55.80 points over spot closing of 12282.20, while Nifty February 2020 futures ended at 12376.00 (LTP), at a premium of 93.80 points over spot closing. Nifty December futures saw an addition of 0.76 million (mn) units, taking the total outstanding open interest (OI) to 12.77 mn units. The near month derivatives contract will expire on January 30, 2020 (Provisional).

From the most active contracts, Indiabulls Housing Finance January 2020 futures traded at a discount of 1.20 points at 324.30 (LTP) compared with spot closing of 325.50. The numbers of contracts traded were 28,365 (Provisional).

Tata Steel January 2020 futures traded at a premium of 0.60 points at 488.40 (LTP) compared with spot closing of 487.80. The numbers of contracts traded were 22,045 (Provisional).

Reliance Industries January 2020 futures traded at a premium of 7.85 points at 1541.95 (LTP) compared with spot closing of 1534.10. The numbers of contracts traded were 21,000 (Provisional).

State Bank of India January 2020 futures traded at a premium of 2.20 points at 341.00 (LTP) compared with spot closing of 338.80. The numbers of contracts traded were 19,412 (Provisional).

Larsen & Toubro January 2020 futures traded at a premium of 5.90 points at 1350.80 (LTP) compared with spot closing of 1344.90. The numbers of contracts traded were 17,934 (Provisional).

Among, Nifty calls, 12300 SP from the January month expiry was the most active call with an addition of 0.004 million open interests. Among Nifty puts, 12200 from the January month expiry was the most active put with an addition of 0.29 units open interests. The maximum OI outstanding for Calls was at 12500 SP (2.27 mn) and that for Puts was at 12000 SP (3.86 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,316.32 --Pivot Point 12,255.78 --Support --12,221.67.

The Nifty Put Call Ratio (PCR) finally stood at 1.23 for January month contract. The top five scrips with highest PCR on Bajaj Finance (1.09), Power Finance Corporation (1.08), Just Dial (1.08), Mahindra & Mahindra Fin. Services (1.05) and UltraTech Cement (1.03).

Among most active underlying, Reliance Industries witnessed a contraction of 1.02 million units of Open Interest in the January month futures contract, followed by State Bank of India witnessing an addition of 0.67 million units of Open Interest in the January month contract, Tata Steel witnessed an addition of 1.51 million units of Open Interest in the January month contract, Tata Motors witnessed an addition of 2.40 million units of Open Interest in the January month contract and Bajaj Finance witnessed an addition of 0.06 million units of Open Interest in the January month future contract (Provisional).