NSE gauge -- Nifty50 -- witnessed considerable gains on Monday, surpassing its psychological level of 12,850 mark. Market made positive start with private report that Indian economy is seen recovering faster than expected and the Reserve Bank is likely to have come to an end of the rate easing cycle. Index remained in green territory, as Foreign portfolio investors (FPIs) have invested a massive Rs 35,109 crore in Indian markets in November so far as corporate earnings and reforms measures undertaken by the government to revive investment activities. In late afternoon session, market extended its gains to trade above 12850 level after Chairman Supratim Bandyopadhyay said pension fund regulator PFRDA will propose to the government to make employers' contribution of 14 per cent under NPS tax free for all categories of subscribers in the next Budget. Employers' contribution of 14 per cent in pension under the National Pension System (NPS) scheme for the central government employees was made tax free from April 1, 2019. Finally, Nifty ended the day’s trade with the gains of above half a percent amid COVID-19 vaccine hopes. US-based biotechnology firm Moderna Inc said its vaccine candidate has been found to be 94.5 percent effective in preventing COVID-19, based on Phase 3 trials.
Most of the sectoral indices ended in green except FMGC, IT and Media. The top gainers from the F&O segment were Tata Motors, Tata Steel and Adani Enterprises. On the other hand, the top losers were BPCL, Piramal Enterprises and Torrent Pharmaceuticals. 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 increased by 3.51% and reached 19.80.The 50 share Nifty up by 93.95 points or 0.74% to settle at 12,874.20.
Nifty November 2020 futures closed at 12889.40 (LTP) on Tuesday, at a premium of 15.20 points over spot closing of 12874.20, while Nifty December 2020 futures ended at 12901.80 (LTP), at a premium of 27.60 points over spot closing. Nifty November futures saw an addition of 3,896 units, taking the total outstanding open interest (Contracts) to 1,62,370 units. The near month derivatives contract will expire on November 26, 2020 (Provisional).
From the most active contracts, Tata Steel November 2020 futures traded at a premium of 2.15 points at 523.75 (LTP) compared with spot closing of 521.60. The numbers of contracts traded were 42,489 (Provisional).
Reliance Industries November 2020 futures traded at a premium of 3.75 points at 1998.55 (LTP) compared with spot closing of 1994.80. The numbers of contracts traded were 39,230 (Provisional).
SBIN November 2020 futures traded at a premium of 0.05 points at 241.40 (LTP) compared with spot closing of 241.35. The numbers of contracts traded were 28,243 (Provisional).
Bajaj Finance November 2020 futures traded at a discount of 27.70 points at 4474.00 (LTP) compared with spot closing of 4501.70. The numbers of contracts traded were 23,629 (Provisional).
ICICI Bank November 2020 futures traded at a premium of 0.25 points at 488.00 (LTP) compared with spot closing of 487.75. The numbers of contracts traded were 22,881 (Provisional).
Among, Nifty calls, 13000 SP from the November month expiry was the most active call with a contraction of 1,338 units open interests. Among Nifty puts, 12500 SP from the November month expiry was the most active put with an addition of 7,772 units open interests. The maximum OI outstanding for Calls was at 13000 SP (25,552 units) and that for Puts was at 12000 SP (44,890 units). The respective Support and Resistance levels of Nifty are: Resistance 12,939.80 -- Pivot Point 12,868.45 -- Support -- 12,802.85.
The Nifty Put Call Ratio (PCR) finally stood at (1.68) for November month contract. The top five scrips with highest PCR on Bajaj Finance (1.67), SBIN (1.49), MRF (1.38), Kotak Mahindra Bank (1.34) and Eicher Motors (1.30).
Among most active underlying, Reliance Industries witnessed an addition of 2,097 units of Open Interest in the November month futures contract followed by Tata Steel witnessed an addition of 1,801 units of Open Interest in the November month futures contract, Bajaj Finance witnessed an addition of 1,956 units of Open Interest in the November month futures contract, SBIN witnessed an addition of 3,335 units of Open Interest in the November month futures contract and Axis Bank witnessed an addition of 3,018 units of Open Interest in the November month futures contract (Provisional).
