S&P CNX -- Nifty -- exhibited a smart performance on Tuesday and ended the trade above 13100 mark. Market made slightly positive start as India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back. Further, index extended its gains with Fitch Solutions’ statement that after a COVID-19 pandemic-led contraction in consumer spending in 2020, household spending will return to growth in 2021, expanding by as much as 6.6 percent.
Market traded higher till the end of the session after data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that FDI inflow rose 15 per cent during the April-September period to $30 billion (Rs 2.2 trillion) as compared to inflows of $26 billion during the same period last fiscal, with India being an attractive destination for foreign funds despite the pandemic. Traders ignored the report that the output of eight core infrastructure sectors dropped 2.5 per cent in October, mainly due to decline in production of crude oil, natural gas, refinery products and steel. The production of eight core sectors had contracted 5.5 per cent in October 2019. The output of eight key sectors is in the negative zone since March.
Most of the sectoral indices ended in green except FMGC. The top gainers from the F&O segment were Gail, Apollo Hospital and Tata Power. On the other hand, the top losers were Shriram Transport Finance Company, Cholamandalam Investment and Finance and Manappuram Finance. 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 0.23% and reached 19.77.The 50 share Nifty up by 140.10 points or 1.08% to settle at 13,109.05.
Nifty December 2020 futures closed at 13135.25 (LTP) on Tuesday, at a premium of 26.20 points over spot closing of 13109.05, while Nifty January 2021 futures ended at 13158.85(LTP) , at a premium of 49.80 points over spot closing. Nifty December futures saw an addition of 3,201units, taking the total open interest (Contracts) to 1,62,876 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 6.80 points at 1960.55 (LTP) compared with spot closing of 1953.75. The numbers of contracts traded were 24,683 (Provisional).
Kotak Mahindra Bank December 2020 futures traded at a discount of 13.00 points at 1865.50 (LTP) compared with spot closing of 1878.50. The numbers of contracts traded were 22,530 (Provisional).
Sun Pharmaceutical Industries December 2020 futures traded at a premium of 2.65 points at 543.25 (LTP) compared with spot closing of 540.60. The numbers of contracts traded were 19,764 (Provisional).
Bharti Airtel December 2020 futures traded at a premium of 2.55 points at 481.55 (LTP) compared with spot closing of 479.00. The numbers of contracts traded were 19,000(Provisional).
ICICI Bank December 2020 futures traded at a premium of 2.90 points at 486.90 (LTP) compared with spot closing of 484.00. The numbers of contracts traded were 18,906 (Provisional).
Among, Nifty calls, 13500 SP from the December month expiry was the most active call with an addition of 509 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 4,985 units open interests. The maximum OI outstanding for Calls was at 13500 SP (25,705 units) and that for Puts was at 12000 SP (38,653 units). The respective Support and Resistance levels of Nifty are: Resistance 13,170.70 -- Pivot Point 13,066.75 -- Support -- 13,005.10.
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 (1.00), Motherson Sumi Systems (0.89), Indusind Bank (0.89),Tata steel (0.86) and SBIN (0.86).
Among most active underlying, Reliance Industries witnessed an addition of 1,114 units of Open Interest in the December month futures contract followed by Bajaj Finance witnessed an addition of 1,554 units of Open Interest in the December month futures contract, Kotak Mahindra Bank witnessed an addition of 2,775 units of Open Interest in the December month futures contract, Bharti Airtel witnessed an addition of 192 units of Open Interest in the December month futures contract and Sun Pharmaceutical Industries witnessed an addition of 336 units of Open Interest in the December month futures contract (Provisional).
