After spending most of the time in red zone, S&P CNX Nifty managed to close in green with marginal gains. Market made cautious start, as ICRA in its latest report has said that debt resolution through the insolvency and bankruptcy code (IBC) and the resultant realisation for financial creditors has taken a hit so far this fiscal due to the pandemic that led to suspension of fresh proceedings. Market extended its losses even after gross Goods and Services Tax (GST) collection for November stood at Rs 1.04 lakh crore, 1.4 percent higher than the sum collected in the same month last year. Traders took note of report that the Reserve Bank of India monetary policy committee is expected to leave interest rates unchanged when it meets on Friday, after data showing the economy contracting less than expected and persistently high inflation. In the last leg of trade, index erased all its losses to end the session with minor gains, as Organization for Economic Co-operation and Development (OECD) has raised prospects of India’s economy by pegging contraction at 9.9 per cent, against 10.2 per cent it projected in September.
Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Bank, PSU Bank and Financial Services sector stocks. The top gainers from the F&O segment were Adani Enterprises, Tata Chemicals and GAIL. On the other hand, the top losers were Canara Bank, Kotak Mahindra Bank and SUN TV Network. 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 increased by 0.30% and reached 20.25.The 50 share Nifty up by 4.70 points or 0.03% to settle at 13,113.75.
Nifty December 2020 futures closed at 13148.30 (LTP) on Wednesday, at a premium of 34.55 points over spot closing of 13113.75, while Nifty January 2021 futures ended at 13170.15(LTP), at a premium of 56.40 points over spot closing. Nifty December futures saw an addition of 2,388 units, taking the total open interest (Contracts) to 1,60,845 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 10.60 points at 1969.60 (LTP) compared with spot closing of 1959.00. The numbers of contracts traded were 24,948 (Provisional).
SBIN December 2020 futures traded at a premium of 1.10 points at 247.65 (LTP) compared with spot closing of 246.55. The numbers of contracts traded were 21,704 (Provisional).
Kotak Mahindra Bank December 2020 futures traded at a premium of 0.45 points at 1813.45 (LTP) compared with spot closing of 1813.00. The numbers of contracts traded were 21,229 (Provisional).
ICICI Bank December 2020 futures traded at a premium of 2.70 points at 482.15 (LTP) compared with spot closing of 479.45. The numbers of contracts traded were 19,930 (Provisional).
Bharti Airtel December 2020 futures traded at a premium of 3.00 points at 487.20 (LTP) compared with spot closing of 484.20. The numbers of contracts traded were 19,840 (Provisional).
Among, Nifty calls, 13500 SP from the December month expiry was the most active call with an addition of 415 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 2,959 units open interests. The maximum OI outstanding for Calls was at 13500 SP (26,120 units) and that for Puts was at 12000 SP (40,547 units). The respective Support and Resistance levels of Nifty are: Resistance 13,166.98 -- Pivot Point 13,075.27 -- Support --13,022.03.
The Nifty Put Call Ratio (PCR) finally stood at (1.69) for December month contract. The top five scrips with highest PCR on Tata steel (1.02), Asian Paints (0.96), Bajaj Finserv (0.92), Motherson Sumi Systems (0.89) and Indusind Bank (0.86).
Among most active underlying, Reliance Industries witnessed an addition of 1,291 units of Open Interest in the December month futures contract followed Tata Steel witnessed an addition of 1,062 units of Open Interest in the December month futures contract, Bajaj Finance witnessed a contraction of 245 units of Open Interest in the December month futures contract, Bharti Airtel witnessed an addition of 2,717 units of Open Interest in the December month futures contract and SBIN witnessed an addition of 995 units of Open Interest in the December month futures contract (Provisional).
