Nifty gave smart performance on Monday by surpassing its psychological level of 12,450 amid positive global cues. Market opened higher, as trades found support with PHD Chamber of Commerce and Industry’s President Sanjay Aggarwal’s statement that the economy is going to attain its fastest growth trajectory from the next financial year 2021-22 onwards. He said ‘Percolation of more and more economic reforms at the ground level with effective implementation would be crucial to attain the potential trajectory of $5 trillion in the next 6 financial years by FY 2026-27 (GDP at current prices; considering the exchange rate between 74-75).’ Further, market maintained its gains with Finance Minister Nirmala Sitharaman’s statement that increased digitisation will help in making better assessment of the country's economic growth and nudged tax practitioners to suggest their clients to shift towards digital modes of payments.
Index added some more points to touch intraday high point in last lag of trade, as private report stated that eleven manufacturing value chains in India have strong potential to operate in international markets, boosting India’s power and providing long-term employment and skill pathways to several Indians. With relevant reforms and complementary actions by manufacturing companies, it is estimated that these 11 manufacturing value chains can generate about $320 billion more in gross value added within the next seven years.
Most of the sectoral indices ended in green except Media. The top gainers from the F&O segment were Voltas, Escorts and Divi’s Lab. On the other hand, the top losers were Glenmark Pharmaceuticals, Cipla and Torrent Power. In the index option segment, maximum OI continues to be seen in the 12500 - 13,700 calls and 11,900 - 12,800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 1.58% and reached 20.17.The 50 share Nifty up by 197.50 points or 1.61% to settle at 12,461.05.
Nifty November 2020 futures closed at 12478.35 (LTP) on Monday, at a premium of 17.30 points over spot closing of 12461.05, while Nifty December 2020 futures ended at 12489.15 (LTP), at a premium of 28.10 points over spot closing. Nifty November futures saw an addition of 9,301 units, taking the total open interest (Contracts) to 1,58,662. The near month derivatives contract will expire on November 26, 2020 (Provisional).
From the most active contracts, Reliance Industries November 2020 futures traded at a premium of 3.40 points at 2053.45 (LTP) compared with spot closing of 2050.05. The numbers of contracts traded were 39,334 (Provisional).
Divi's Lab November 2020 futures traded at a premium of 13.00 points at 3428.00 (LTP) compared with spot closing of 3415.00. The numbers of contracts traded were 33,929 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 0.25 points at 464.65 (LTP) compared with spot closing of 464.40. The numbers of contracts traded were 32,800 (Provisional).
Indusind Bank November 2020 futures traded at a premium of 0.80 points at 776.15 (LTP) compared with spot closing of 775.35. The numbers of contracts traded were 26,433 (Provisional).
SBIN November 2020 futures traded at a premium of 0.95 points at 220.50 (LTP) compared with spot closing of 219.55. The numbers of contracts traded were 25,307 (Provisional).
Among, Nifty calls, 12500 SP from the November month expiry was the most active call with a contraction of 17 units open interests. Among Nifty puts, 12000 SP from the November month expiry was the most active put with an addition of 6,956 units open interests. The maximum OI outstanding for Calls was at 13000 SP (24,687 units) and that for Puts was at 12000 SP (36,467 units). The respective Support and Resistance levels of Nifty are: Resistance 12,500.95 -- Pivot Point 12,434.15 -- Support -- 12,394.25.
The Nifty Put Call Ratio (PCR) finally stood at (1.63) for November month contract. The top five scrips with highest PCR on Bajaj Finance (1.51), Indusind Bank (1.42), Kotak Mahindra Bank (1.31), Havells (1.14) and Cholamandalam Investment (1.05).
Among most active underlying, Reliance Industries witnessed an addition of 3,572 units of Open Interest in the November month futures contract followed by Divi’s Lab witnessed an addition of 540 units of Open Interest in the November month futures contract, Cipla witnessed an addition of 1,700 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 303 units of Open Interest in the November month futures contract and HDFC Bank witnessed an addition of 464 units of Open Interest in the November month futures contract (Provisional).
