Nifty ends in positive terrain

Nifty finished the last trading day of week on positive note with gains of 0.26%. Market made positive start, as the finance ministry has notified the Viability Gap Funding (VGF) scheme under which infrastructure projects would be selected for financial support to give a push to the sector. As per the scheme notified by the ministry, funding up to Rs 200 crore will be sanctioned by the Empowered Committee (EC) headed by the economic affairs secretary, while projects needing over Rs 200 crore would be approved by the EC with the approval of the finance minister. Further, market continued its firm trade, as Union Minister for Minister of Micro, Small and Medium Enterprises (MSME) Nitin Gadkari said that India was a destination with huge potential for attractive investments and urged people to invest in MSMEs in the country. He also said that with the world moving production away from dealings in China, India was the next best alternative. In late afternoon session, market erased all its gains to turn negative, as private report that India’s retail inflation probably fell in November from October but remained above the Reserve Bank of India’s target, amid high food and petrol prices. However, in the last leg of trade market bounce back in green zone to end the session.

Most of the sectoral indices ended in green except Auto, IT and Pharma. The top gainers from the F&O segment were Apollo Tyres, PNB and ONGC. On the other hand, the top losers were TVS Motor, Page Industries and Axis 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 0.41% and reached 18.79. The 50 share Nifty up by 35.55 points or 0.26% to settle at 13,513.85.

Nifty December 2020 futures closed at 13517.00 (LTP) on Friday, at a premium of 3.15 points over spot closing of 13513.85, while Nifty January 2021 futures ended at 13552.05 (LTP), at a premium of 38.20 points over spot closing. Nifty December futures saw an addition of 5,508 units, taking the total outstanding open interest (Contracts) to 1,61,452 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 3.50 points at 2002.90 (LTP) compared with spot closing of 1999.40. The numbers of contracts traded were 39,547 (Provisional).

UPL December 2020 futures traded at a premium of 1.85 points at 436.35 (LTP) compared with spot closing of 434.50. The numbers of contracts traded were 34,595 (Provisional).

Infosys December 2020 futures traded at a premium of 0.60 points at 1165.80 (LTP) compared with spot closing of 1165.20. The numbers of contracts traded were 23,410 (Provisional).

ITC December 2020 futures traded at a premium of 0.35 points at 216.35 (LTP) compared with spot closing of 216.00. The numbers of contracts traded were 21,295 (Provisional).

SBIN December 2020 futures traded at a premium of 0.50 points at 273.00 (LTP) compared with spot closing of 272.50. The numbers of contracts traded were 21,242 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with an addition of 1,155 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 1,180 units open interests. The maximum OI outstanding for Calls was at 14000 SP (24,803 units) and that for Puts was at 13000 SP (50,798 units). The respective Support and Resistance levels of Nifty are: Resistance 13,594.52 -- Pivot Point 13,498.68 -- Support -- 13,418.02.

The Nifty Put Call Ratio (PCR) finally stood at (1.88) for December month contract. The top five scrips with highest PCR on Asian Paints (1.38), Tata steel (1.07), SAIL (1.04), SBIN (1.00) and Indusind Bank (0.91).

Among most active underlying, Reliance Industries witnessed an addition of 1,275 units of Open Interest in the December month futures contract followed UPL witnessed an addition of 1,433 units of Open Interest in the December month futures contract, Bajaj Finance witnessed an addition of 724 units of Open Interest in the December month futures contract, SBIN witnessed an addition of 1,192 units of Open Interest in the December month futures contract and Tata Steel witnessed an addition of 1,141 units of Open Interest in the December month futures contract (Provisional).