In highly volatile session, S&P CNX -- Nifty -- ended the session in red zone on last trading day of week. Market made cautious start, as SBI Research in its latest report said India’s GDP likely contracted 10.7% in the second quarter, with a further recovery likely in the third quarter, citing improvements in economic indicators over October and November. The union ministry of statistics and programme implementation (MoSPI) on November 27 will announce the gross domestic product (GDP) numbers for the second quarter (July-September 2020) of current financial year (FY 2020-21). Traders took note of Reserve Bank of India Governor Shaktikanta Das’ statement that the Indian economy has exhibited stronger pick up in momentum of recovery than expected. Market traded with losses till the end of the session despite Niti Aayog CEO Amitabh Kant’s statement that digital infrastructure has become indispensable to the functioning of society and India can create $1 trillion of economic value using digital technology by 2025. He also said the coronavirus disease (covid-19) pandemic has provided an impetus to the ever-expanding digital infrastructure.
Most of the sectoral indices ended in green except IT. The top gainers from the F&O segment were Mahanagar Gas, Cummins India and Indraprastha Gas. On the other hand, the top losers were Nestle India, Power Grid Corporation of India and Petronet LNG. 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 0.62% and reached 19.90.The 50 share Nifty down by 18.05 points or 0.14% to settle at 12,968.95.
Nifty December 2020 futures closed at 12997.00 (LTP) on Friday, at a premium of 28.05 points over spot closing of 12968.95, while Nifty January 2021 futures ended at 13013.55 (LTP), at a premium of 44.60 points over spot closing. Nifty December futures saw an addition of 10,813 units, taking the total open interest (Contracts) to 1,62,744 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).
From the most active contracts, Kotak Mahindra Bank December 2020 futures traded at a discount of 23.30 points at 1862.00 (LTP) compared with spot closing of 1885.30. The numbers of contracts traded were 77,559 (Provisional).
Reliance Industries December 2020 futures traded at a premium of 10.50 points at 1951.00 (LTP) compared with spot closing of 1940.50. The numbers of contracts traded were 40,348 (Provisional).
Bajaj Finance December 2020 futures traded at a discount of 62.45 points at 4812.35 (LTP) compared with spot closing of 4874.80. The numbers of contracts traded were 37,843 (Provisional).
Infosys December 2020 futures traded at a premium of 6.65 points at 1119.00 (LTP) compared with spot closing of 1112.35. The numbers of contracts traded were 29,547 (Provisional).
ICICI Bank December 2020 futures traded at a premium of 2.55 points at 476.85 (LTP) compared with spot closing of 474.30. The numbers of contracts traded were 28,566 (Provisional).
Among, Nifty calls, 13000 SP from the December month expiry was the most active call with an addition of 2,330 units open interests. Among Nifty puts, 12500 SP from the December month expiry was the most active put with an addition of 3,276 units open interests. The maximum OI outstanding for Calls was at 13500 SP (35,824 units) and that for Puts was at 12500 SP (28,669 units). The respective Support and Resistance levels of Nifty are: Resistance 13,031.40 -- Pivot Point 12,972.85 -- Support -- 12,910.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for December month contract. The top five scrips with highest PCR on Bajaj Finserv (0.96), Pidilite Industries (0.95), Apollo Tyres (0.92), Tata steel (0.89) and Indusind Bank (0.86).
Among most active underlying, Kotak Mahindra Bank witnessed an addition of 5,737 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, Reliance Industries witnessed an addition of 17,071 units of Open Interest in the December month futures contract, Tata Steel witnessed an addition of 7,848 units of Open Interest in the December month futures contract and Infosys witnessed an addition of 5,244 units of Open Interest in the December month futures contract (Provisional).
