Nifty -- finished the trade with the gains of a percent amid F&O expiry day. Market made positive start, but soon entered into red zone as 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), September 2020' - released by the Reserve Bank of India (RBI) has indicated that bank credit growth decelerated to 5.8 percent in Q2 (July- September) of FY21 from 8.9 percent in the year-ago period. It also said aggregate deposits of banks rose 11 percent year-on-year in the July-September period as compared to 10.1 percent growth a year ago. Market continued weak trade even after Reserve Bank of India (RBI) Governor Shaktikanta Das has said the country’s economy has recovered stronger than expected from the initial impact of the COVID-19 pandemic. However, in late afternoon session, market rebounded in positive territory to trade higher with a private report stating that the Indian economy is likely to have improved in the second quarter with GDP printing in at -7.8 percent as against 24 percent contraction in the June quarter.
All the sectoral indices ended in green. The top gainers from the F&O segment were Siemens, SAIL and JSW Steel. On the other hand, the top losers were Indigo, RBL Bank and Eicher Motors. In the index option segment, maximum OI continues to be seen in the 12500 - 13,700 calls and 11,900 – 13,000 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 13.42% and reached 20.02.The 50 share Nifty up by 128.60 points or 1.00% to settle at 12,987.00.
Nifty December 2020 futures closed at 13043.75 (LTP) on Thursday, at a premium of 56.75 points over spot closing of 12987.00, while Nifty January 2021 futures ended at 13069.00 (LTP), at a premium of 82.00 points over spot closing. Nifty December futures saw an addition of 41,254 units, taking the total open interest (Contracts) to 1,56,861 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).
From the most active contracts, Reliance Industries December 2020 futures traded at a premium of 7.75 points at 1964.75 (LTP) compared with spot closing of 1957.00. The numbers of contracts traded were 41,962 (Provisional).
Bajaj Finance December 2020 futures traded at a discount of 8.00 points at 4842.00 (LTP) compared with spot closing of 4850.00. The numbers of contracts traded were 28,121 (Provisional).
Kotak Mahindra Bank December 2020 futures traded at a discount of 3.00 points at 1886.95 (LTP) compared with spot closing of 1889.95. The numbers of contracts traded were 27,287 (Provisional).
Infosys December 2020 futures traded at a premium of 4.00 points at 1122.00 (LTP) compared with spot closing of 1118.00. The numbers of contracts traded were 26,065 (Provisional).
HDFC Bank December 2020 futures traded at a premium of 0.10 points at 1432.00 (LTP) compared with spot closing of 1431.90. The numbers of contracts traded were 25,988 (Provisional).
Among, Nifty calls, 13500 SP from the December month expiry was the most active call with an addition of 5,837 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 4,819 units open interests. The maximum OI outstanding for Calls was at 13500 SP (24,658 units) and that for Puts was at 12000 SP (34,803 units). The respective Support and Resistance levels of Nifty are: Resistance 13,073.20 -- Pivot Point 12,931.80 -- Support -- 12,845.60.
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for December month contract. The top five scrips with highest PCR on SAIL (1.58), Escorts (1.23), Pidilite Industries (1.20), RBL Bank (0.98) and Bajaj Finserv (0.96).
Among most active underlying, Reliance Industries witnessed an addition of 17,071 units of Open Interest in the December month futures contract followed by Bajaj Finance witnessed an addtion of 3,163 units of Open Interest in the December month futures contract, Kotak Mahindra Bank witnessed an addition of 5,737 units of Open Interest in the December month futures contract, HDFC Bank witnessed an addition of 7,848 units of Open Interest in the December month futures contract and Axis Bank witnessed an addition of 5,244 units of Open Interest in the December month futures contract (Provisional).
