Nifty manages to end session in green zone

Nifty managed to end the session in green zone on Tuesday. It was a negative start to the market, as the Confederation of Indian Industry (CII) has said that the current agitation by farmers has led to supply chain disruptions, which will impact the economy in the coming days and may impinge upon the ongoing recovery from the economic contraction due to COVID-19. Further, index extended its free fall even after rating agency CRISIL’s report in which it has projected a slower contraction of 7.7% for the Indian economy in the ongoing fiscal, compared to the 9% forecast in September on the back of faster-than-expected recovery in the second quarter, but called for more fiscal measures to sustain it.

However, in late afternoon session, market erased all losses and entered into green zone, as Commerce and Industry Minister Piyush Goyal stated that Foreign direct investments (FDIs) into India have been continuously growing as the country has one of the most facilitative policies to attract overseas investors. He said that during April-September 2020, FDI increased 13 per cent to about $40 billion. Traders also took support, as government data showing that retail Inflation has eased marginally to 6.93% in November due to considerable easing in vegetable prices. Retail inflation had remained above 7 per cent for two month in a row.

Traders were seen piling positions in Auto, Media and Metal sector while selling was witnessed in Bank, FMGC and IT sector stocks. The top gainers from the F&O segment were ZEEL, GMR Infrastructure and Bajaj Finance. On the other hand, the top losers were Canara Bank, Indigo and IGL. 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 decreased by 0.29% and reached 19.35. The 50 share Nifty up by 9.70 points or 0.07% to settle at 13,567.85.

Nifty December 2020 futures closed at 13585.00 (LTP) on Tuesday, at a premium of 17.15 points over spot closing of 13567.85, while Nifty January 2021 futures ended at 13623.85 (LTP), at a premium of 56.00 points over spot closing. Nifty December futures saw an addition of 4,647 units, taking the total open interest (Contracts) to 1,62,488 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).

From the most active contracts, Bajaj Finance December 2020 futures traded at a premium of 18.00 points at 5168.00 (LTP) compared with spot closing of 5150.00. The numbers of contracts traded were 29,871(Provisional).

Reliance Industries December 2020 futures traded at a premium of 3.70 points at 1977.30 (LTP) compared with spot closing of 1973.60. The numbers of contracts traded were 23,082 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 0.90 points at 517.60 (LTP) compared with spot closing of 516.70. The numbers of contracts traded were 21,385 (Provisional).

Axis Bank December 2020 futures traded at a premium of 1.90 points at 608.80 (LTP) compared with spot closing of 606.90. The numbers of contracts traded were 20,146 (Provisional).

HDFC Bank December 2020 futures traded at a premium of 1.75 points at 1394.25 (LTP) compared with spot closing of 1392.50. The numbers of contracts traded were 17,668 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with a contraction of 885 units open interests. Among Nifty puts, 13500 SP from the December month expiry was the most active put with an addition of 2,344 units open interests. The maximum OI outstanding for Calls was at 14000 SP (24,541 units) and that for Puts was at 13000 SP (55,953 units). The respective Support and Resistance levels of Nifty are: Resistance 13,622.65 -- Pivot Point 13,534.85 -- Support --13,480.05.

The Nifty Put Call Ratio (PCR) finally stood at (1.84) for December month contract. The top five scrips with highest PCR on Asian Paints (1.56), Tata steel (1.15), SAIL (1.09), Bajaj Finance (1.00) and SBIN (0.94).

Among most active underlying, Bajaj Finance witnessed an addition of 1,782 units of Open Interest in the December month futures contract followed Reliance Industries witnessed an addition of 3,582 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 4,367 units of Open Interest in the December month futures contract, Axis Bank witnessed an addition of 1,078 units of Open Interest in the December month futures contract and HDFC Bank witnessed an addition of 969 units of Open Interest in the December month futures contract (Provisional).