Nifty manage to end session in green zone

After spending most of the time in red zone, Nifty managed to end the session in green zone. Earlier, market made cautious start and soon entered into red zone with private report stating that the current pandemic is likely to shape consumer thinking and consequently impact shopping behaviour, and the overall consumption growth is likely to get delayed by up to two years. It also said that the household consumption is going to be negatively impacted over 2020 and 2021. Further, market extended its losses, as private report stated that venture investments by private equity and venture capital funds were 27 percent lower on yearly basis in November at $3.9 billion, and more than halved from the $8.5 billion reported in October. However, in late afternoon session, index erased all its losses to trade above neutral line, as ICRA pegged the contraction in the economy at 7.8 per cent for 2020-21. Before the GDP numbers for Q2 were out, it had predicted the fall in the economy at 11 per cent. It said improving economic fundamentals, a bright outlook for the rabi season, and the visibility of vaccine availability are expected to strengthen demand.

Most of the sectoral indices ended in red except FMGC, IT and Pharma.The top gainers from the F&O segment were Pidilite Industries, Cummins India and Dr.Reddy's Laboratories. On the other hand, the top losers were RBL Bank, Indus Towers and Apollo Tyres. 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 2.79% and reached 18.62. The 50 share Nifty up by 19.85 points or 0.14% to settle at 13,760.55.

Nifty December 2020 futures closed at 13762.10 (LTP) on Friday, at a premium of 1.55 points over spot closing of 13760.55, while Nifty January 2021 futures ended at 13809.35 (LTP), at a premium of 48.80 points over spot closing. Nifty December futures saw an addition of 4,573 units, taking the total open interest (Contracts) to 1,75,412 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).

From the most active contracts, Infosys December 2020 futures traded at a premium of 4.65 points at 1190.65 (LTP) compared with spot closing of 1186.00. The numbers of contracts traded were 37,491 (Provisional).

DR Reddy December 2020 futures traded at a discount of 0.75 points at 5242.25 (LTP) compared with spot closing of 5243.00. The numbers of contracts traded were 30,262 (Provisional).

Reliance Industries December 2020 futures traded at a premium of 3.80 points at 2001.90 (LTP) compared with spot closing of 1998.10. The numbers of contracts traded were 23,445 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 0.50 points at 516.45 (LTP) compared with spot closing of 515.95. The numbers of contracts traded were 22,985 (Provisional).

Indusind Bank December 2020 futures traded at a premium of 1.10 points at 907.85 (LTP) compared with spot closing of 906.75. The numbers of contracts traded were 19,025 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with an addition of 2,857 units open interests. Among Nifty puts, 13700 SP from the December month expiry was the most active put with an addition of 4,798 units open interests. The maximum OI outstanding for Calls was at 14000 SP (28,337 units) and that for Puts was at 13000 SP (63,353 units). The respective Support and Resistance levels of Nifty are: Resistance 13,802.73 -- Pivot Point 13,730.67 -- Support -- 13,688.48.

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 (1.52), Tata steel (1.10), Bajaj Finance (1.07), Titan Company (0.97) and Kotak Mahindra Bank (0.92).

Among most active underlying, Infosys witnessed an addition of 252 units of Open Interest in the December month futures contract followed Reliance Industries witnessed an contraction of 520 units of Open Interest in the December month futures contract, Dr Reddy witnessed an addition of 3,030 units of Open Interest in the December month futures contract, Tata Steel witnessed an addition of 1,560 units of Open Interest in the December month futures contract and Bajaj Finance witnessed an addition of 45 units of Open Interest in the December month futures contract (Provisional).