Nifty ends higher on Tuesday

Nifty ended the Tuesday’s session with gains above a percent. Market made a positive start, as Ministry of Finance has released the 8th weekly installment of Rs 6,000 crore to the states. Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. Market soon entered into red zone with renewed fears of a highly infectious new strain of COVID-19. But in late afternoon session, market wiped out all its losses to trade in green zone, as economic think-tank NCAER, in its mid-year review of the Indian economy, has said that India's Gross Domestic Product (GDP) growth is likely to turn positive at 0.1 per cent in the October-December (Q3) quarter, after witnessing a contraction in the first half of the current financial year. It also forecast 2 per cent growth in the fourth quarter (January-March 2021). It noted that the overall contraction in the current fiscal is likely to be contained at 7.3 per cent.

Most of the sectoral indices ended in green except Financial Services .The top gainers from the F&O segment were Coforge, Mindtree and Adani Enterprises. On the other hand, the top losers were PVR, Shriram Transport Finance Company and PNB. 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 5.19% and reached 21.99. The 50 share Nifty up by 137.90 points or 1.03% to settle at 13,466.30.

Nifty December 2020 futures closed at 13489.25 (LTP) on Tuesday, at a premium of 22.95 points over spot closing of 13466.30, while Nifty January 2021 futures ended at 13533.70 (LTP), at a premium of 67.40 points over spot closing.  Nifty December futures saw an addition of 4,996 units, taking the total open interest (Contracts) to 1,54,756 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 2.40 points at 1937.40 (LTP) compared with spot closing of 1935.00. The numbers of contracts traded were 32,992 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 0.70 points at 500.25 (LTP) compared with spot closing of 499.55. The numbers of contracts traded were 31,863 (Provisional).

HDFC Bank December 2020 futures traded at a premium of 4.70 points at 1377.70 (LTP) compared with spot closing of 1373.00. The numbers of contracts traded were 26,998(Provisional).

Infosys December 2020 futures traded at a premium of 0.50 points at 1220.45 (LTP) compared with spot closing of 1219.95. The numbers of contracts traded were 26,160(Provisional).

Bajaj Finance December 2020 futures traded at a premium of 18.20 points at 5028.20 (LTP) compared with spot closing of 5010.00. The numbers of contracts traded were 23,240 (Provisional).

Among, Nifty calls, 13500 SP from the December month expiry was the most active call with an addition of 2,044 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with an addition of 9,047 units open interests. The maximum OI outstanding for Calls was at 14000 SP (34,143 units) and that for Puts was at 13000 SP (62,060 units). The respective Support and Resistance levels of Nifty are: Resistance 13,574.60 -- Pivot Point 13,383.75 -- Support -- 13,275.45.

The Nifty Put Call Ratio (PCR) finally stood at (1.58) for December month contract. The top five scrips with highest PCR on Asian Paints (1.65), Titan Company (1.08), Kotak Mahindra Bank (0.97), Tata steel (0.92) and Bajaj Finance (0.86).

Among most active underlying, Reliance Industries witnessed an addition of 2,282 units of Open Interest in the December month futures contract followed by Bajaj Finance witnessed an addition of 646 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 3,683 units of Open Interest in the December month futures contract, HDFC Bank witnessed an addition of 3,720 units of Open Interest in the December month futures contract and Infosys witnessed an addition of 1,999 units of Open Interest in the December month futures contract (Provisional).