National Stock Exchange (NSE) ended the last trading day of week above its psychological level of 13250. Market made a positive start, after the Finance Ministry in its latest Monthly Economic Review has said that the Indian economy is witnessing a V-shaped recovery as the GDP has recorded a quarter-on-quarter growth of 23 per cent in the July-September quarter of this fiscal. As per the report, this V-shaped recovery, evident at the half-way stage of 2020-21, reflects the resilience and robustness of the Indian economy. It further noted that the fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery.
Further, market extended its gains, as traders found support with the International Monetary Fund’s statement that India's economy, severely affected by the coronavirus pandemic, is gradually recovering. It said 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 percent and held out hopes for further improvement on better consumer demand. In last leg of trade, buying got intensified to touch its intraday high point, as India's central bank left its key interest rates unchanged as widely expected as inflation remains elevated. The Monetary Policy Committee, led by Governor Shaktikanta Das, voted unanimously to hold the policy repo rate at 4.00 percent. The reverse repo rate was retained at 3.35 percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were Indigo, Tata Chemicals and Adani Ports. On the other hand, the top losers were Ambuja Cement, ACC and Shriram Transport Finance Company. 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 5.11% and reached 18.03.The 50 share Nifty up by 124.65 points or 0.95% to settle at 13,258.55.
Nifty December 2020 futures closed at 13322.00 (LTP) on Friday, at a premium of 63.45 points over spot closing of 13258.55, while Nifty January 2021 futures ended at 13355.40 (LTP), at a premium of 96.85 points over spot closing. Nifty December futures saw an addition of 11,415 units, taking the total open interest (Contracts) to 1,71,198 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).
From the most active contracts, ICICI Bank December 2020 futures traded at a premium of 1.60 points at 505.10 (LTP) compared with spot closing of 503.50. The numbers of contracts traded were 33,105 (Provisional).
SBIN December 2020 futures traded at a premium of 0.90 points at 264.95 (LTP) compared with spot closing of 264.05. The numbers of contracts traded were 32,107 (Provisional).
Bharti Airtel December 2020 futures traded at a premium of 2.50 points at 497.00 (LTP) compared with spot closing of 494.50. The numbers of contracts traded were 25,994 (Provisional).
HDFC Bank December 2020 futures traded at a premium of 7.95 points at 1398.05 (LTP) compared with spot closing of 1390.10. The numbers of contracts traded were 22,366 (Provisional).
Infosys December 2020 futures traded at a premium of 6.80 points at 1141.30 (LTP) compared with spot closing of 1134.50. The numbers of contracts traded were 22,015 (Provisional).
Among, Nifty calls, 13500 SP from the December month expiry was the most active call with a contraction of 498 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 3,572 units open interests. The maximum OI outstanding for Calls was at 13500 SP (25,332 units) and that for Puts was at 12000 SP (44,696 units). The respective Support and Resistance levels of Nifty are: Resistance 13,308.12 -- Pivot Point 13,230.48 -- Support -- 13,180.92.
The Nifty Put Call Ratio (PCR) finally stood at (1.74) for December month contract. The top five scrips with highest PCR on Asian Paints (1.35), Tata steel (1.17), SBIN (1.10), Bajaj Finserv (1.00) and Indusind Bank (0.93).
Among most active underlying, SBIN witnessed a contraction of 832 units of Open Interest in the December month futures contract followed Bharti Airtel witnessed an addition of 558 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 1,381 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 2,194 units of Open Interest in the December month futures contract and Bajaj Finance witnessed a contraction of 149 units of Open Interest in the December month futures contract (Provisional).
