Nifty ends near intraday high point

Indian Benchmark -- Nifty -- finished the Wednesday’s trade near intraday high point with gain of over half a percent. Market made positive start, as S&P Global Ratings raised India’s growth projection for the current fiscal to (-) 7.7 percent from (-) 9 percent estimated earlier on rising demand and falling COVID infection rates. It said rising demand and falling infection rates have tempered its expectation of COVID’s hit on the Indian economy. Further, market continued firm trade with Union Road Transport Minister Nitin Gadkari’s statement that India holds huge investment opportunities especially in its vibrant infrastructure sector where projects worth Rs 44 lakh crore are under implementation as part of the Rs 111 lakh crore National Infrastructure Pipeline (NIP). He said as per Prime Minister Narendra Modi's vision focus was being laid on developing a world-class infrastructure under the NIP, which is first-of-its-kind exercise to bolster development.

In late afternoon session, index added some more points to touch intraday high point, as Securities and Exchange Board of India (SEBI) in its latest data report has showed that investments through participatory notes (P-notes) in the Indian capital market rose to a 27-month high of Rs 83,114 crore at November-end. Traders also took support, as Finance minister Nirmala Sitharaman asserted that the Budget for FY22 will be vibrant enough to sustain economic revival in the aftermath of Covid-19 disruption.

Most of the sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were DLF, Indiabulls Housing Finance and Page Industries. On the other hand, the top losers were PNB, GMR Infrastructure and Shriram Transport Finance Company. 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 0.74% and reached 19.20. The 50 share Nifty up by 114.85 points or 0.85% to settle at 13,682.70.

Nifty December 2020 futures closed at 13696.05 (LTP) on Wednesday, at a premium of 13.35 points over spot closing of 13682.70, while Nifty January 2021 futures ended at 13735.10 (LTP), at a premium of 52.40 points over spot closing. Nifty December futures saw an addition of 12,798 units, taking the total open interest (Contracts) to 1,69,448 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).

From the most active contracts, HDFC Bank December 2020 futures traded at a premium of 6.35 points at 1414.20 (LTP) compared with spot closing of 1407.85. The numbers of contracts traded were 21,594 (Provisional).

HDFC December 2020 futures traded at a premium of 6.10 points at 2421.10 (LTP) compared with spot closing of 2415.00. The numbers of contracts traded were 21,480 (Provisional).

DLF December 2020 futures traded at a premium of 0.45 points at 235.85 (LTP) compared with spot closing of 235.40. The numbers of contracts traded were 20,924 (Provisional).

Reliance Industries December 2020 futures traded at a premium of 8.45 points at 1986.00 (LTP) compared with spot closing of 1977.55. The numbers of contracts traded were 20,592 (Provisional).

Bharti Airtel December 2020 futures traded at a premium of 0.80 points at 519.10 (LTP) compared with spot closing of 518.30. The numbers of contracts traded were 18,105 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with a contraction of 545 units open interests. Among Nifty puts, 13500 SP from the December month expiry was the most active put with an addition of 7,283 units open interests. The maximum OI outstanding for Calls was at 14000 SP (23,862 units) and that for Puts was at 13000 SP (57,103 units). The respective Support and Resistance levels of Nifty are: Resistance 13,714.55 -- Pivot Point 13,660.50 -- Support -- 13,628.65.

The Nifty Put Call Ratio (PCR) finally stood at (1.93) for December month contract. The top five scrips with highest PCR on Asian Paints (1.64), Tata steel (1.21), SAIL (1.11), DLF (0.98) and ONGC (0.98)

Among most active underlying, Bajaj Finance witnessed a contraction of 411 units of Open Interest in the December month futures contract followed Reliance Industries witnessed an addition of 1,879 units of Open Interest in the December month futures contract, Bharti Airtel witnessed an addition of 1,056 units of Open Interest in the December month futures contract, HDFC Bank witnessed an addition of 819 units of Open Interest in the December month futures contract and DLF witnessed an addition of 1,404 units of Open Interest in the December month futures contract (Provisional).