Nifty witnessed smart performance; ends above 13525 mark

Nifty witnessed smart performance and finished Wednesday’s trade with the gains of above a percent. Market made positive start, as traders took support with Finance Minister Nirmala Sitharaman’s statement that India will not worry about missing its budget deficit target as it seeks to step up spending to support the economy. Further, market traded fine fettle, as Union Minister of Road Transport Nitin Gadkari has highlighted that Micro, Small and Medium Enterprises (MSME) is backbone of Indian economy and said the government's aim is to increase the sector's contribution to the Gross Domestic Product (GDP) to 50 per cent from the existing 30 per cent. In late afternoon session, index extended its gains to trade above 13500 mark, as traders consider approving coronavirus vaccines for the public, raising hopes of early economic recovery. As per a private report, an expert panel is set to review the applications of Bharat Biotech, Pfier-BioNTech and Serum Institute of India seeking emergency use authorisation for their vaccines. Adding optimistic, ratings agency ICRA’s statement that non-bank lenders have witnessed a good rise in loan collection efficiencies in the September quarter after the reverses in the first three months of the fiscal.

Most of the sectoral indices ended in green except Auto, Metal and PSU Bank. The top gainers from the F&O segment were PVR, REC and Cummins India. On the other hand, the top losers were TVS Motor, PNB and Canara Bank. In the index option segment, maximum OI continues to be seen in the 13500 - 14,700 calls and 12,900 - 13,500 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.62% and reached 18.92. The 50 share Nifty up by 136.15 points or 1.02% to settle at 13,529.10.

Nifty December 2020 futures closed at 13576.90 (LTP) on Wednesday, at a premium of 47.80 points over spot closing of 13529.10, while Nifty January 2021 futures ended at 13614.05 (LTP), at a premium of 84.95 points over spot closing.  Nifty December futures saw an addition of 9,620 units, taking the total open interest (Contracts) to 1,73,254 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 7.60 points at 2033.60 (LTP) compared with spot closing of 2026.00. The numbers of contracts traded were 33,347 (Provisional).

Infosys December 2020 futures traded at a premium of 3.35 points at 1179.90 (LTP) compared with spot closing of 1176.55. The numbers of contracts traded were 22,933 (Provisional).

SBIN December 2020 futures traded at a premium of 1.35 points at 271.60 (LTP) compared with spot closing of 270.25. The numbers of contracts traded were 21,530 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 1.05 points at 511.75 (LTP) compared with spot closing of 510.70. The numbers of contracts traded were 18,986 (Provisional).

Axis Bank December 2020 futures traded at a premium of 3.30 points at 636.00 (LTP) compared with spot closing of 632.70. The numbers of contracts traded were 18,489 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with a contraction of 606 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 3,386 units open interests. The maximum OI outstanding for Calls was at 14000 SP (20,129 units) and that for Puts was at 13000 SP (51,327 units). The respective Support and Resistance levels of Nifty are: Resistance 13,568.80 -- Pivot Point 13,509.20 -- Support -- 13,469.50.

The Nifty Put Call Ratio (PCR) finally stood at (1.91) for December month contract. The top five scrips with highest PCR on Asian Paints (1.46), SBIN (1.08), Tata steel (1.06), Bajaj Finserv (0.98) and Indusind Bank (0.95).

Among most active underlying, Reliance Industries witnessed a contraction of 315 units of Open Interest in the December month futures contract followed SBIN witnessed an addition of 1,641 units of Open Interest in the December month futures contract, Infosys witnessed a contraction of 596 units of Open Interest in the December month futures contract, Axis Bank witnessed an addition of 721 units of Open Interest in the December month futures contract and HDFC Bank witnessed a contraction of 47 units of Open Interest in the December month futures contract (Provisional).