Nifty continues northward journey

The local benchmark --Nifty-- continued its northward journey on Wednesday and finished the day’s trade with the gains of a percent. Market made a positive start, as traders took support with PHD Chamber of Commerce and Industry’s EBM Index showing that the continuous improvement in the key economic and business indicators signals that the worst is behind us and expectations of positive GDP growth at 0.1 per cent to 2 per cent in Q3 and 2 per cent to 4 per cent in Q4 FY 2020-21 are becoming strong with a higher growth trajectory in FY 2021-22 at 7.7 per cent. Market extended its gains till the end of the session, as private report states that India is likely to approve Oxford/AstraZeneca’s coronavirus vaccine for emergency use by next week after its local manufacturer submitted additional data sought by authorities. Some additional comfort also came with report that high growth story of foreign direct investments into India will ‘go well’ in the new year too as there is a growing interest among overseas investors about the country amid the government's continuing reform measures to further improve the business climate. Finally, Nifty ended the session above 13550 level.

All the sectoral indices ended in green. The top gainers from the F&O segment were Vodafone Idea, Indiabulls Housing Finance and Vedanta. On the other hand, the top losers were PNB, Page Industries 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 6.77% and reached 20.50. The 50 share Nifty up by 134.80 points or 1.00% to settle at 13,601.10.

Nifty December 2020 futures closed at 13619.05 (LTP) on Wednesday, at a premium of 17.95 points over spot closing of 13601.10, while Nifty January 2021 futures ended at 13669.00 (LTP), at a premium of 67.90 points over spot closing. Nifty December futures saw an addition of 1,537 units, taking the total open interest (Contracts) to 1,46,767 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 0.10 points at 1252.10 (LTP) compared with spot closing of 1252.00. The numbers of contracts traded were 29,282 (Provisional).

Reliance Industries December 2020 futures traded at a premium of 2.00 points at 1949.00 (LTP) compared with spot closing of 1947.00. The numbers of contracts traded were 21,911 (Provisional).

Wipro December 2020 futures traded at a premium of 1.00 points at 385.95 (LTP) compared with spot closing of 384.95. The numbers of contracts traded were 18,805 (Provisional).

Vedanta December 2020 futures traded at a premium of 0.60 points at 151.15 (LTP) compared with spot closing of 150.55. The numbers of contracts traded were 18,472 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 0.10 points at 505.10 (LTP) compared with spot closing of 505.00. The numbers of contracts traded were 17,902 (Provisional).

Among, Nifty calls, 13800 SP from the December month expiry was the most active call with an addition of 3,416 units open interests. Among Nifty puts, 13500 SP from the December month expiry was the most active put with an addition of 15,922 units open interests. The maximum OI outstanding for Calls was at 14000 SP (39,807 units) and that for Puts was at 13000 SP (63,939 units). The respective Support and Resistance levels of Nifty are: Resistance 13,669.63 -- Pivot Point 13,550.92 -- Support -- 13,482.38.

The Nifty Put Call Ratio (PCR) finally stood at (1.54) for December month contract. The top five scrips with highest PCR on Asian Paints (1.81), Tata steel (1.01), Titan Company (0.99), Kotak Mahindra Bank (0.98) and SAIL (0.91).

Among most active underlying, Wipro witnessed an addition of 3,562 units of Open Interest in the December month futures contract followed by Infosys witnessed an addition of 3,289 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 1,938 units of Open Interest in the December month futures contract, Bajaj Finance witnessed an addition of 329 units of Open Interest in the December month futures contract and Tata Steel witnessed a contraction of 2,663 units of Open Interest in the December month futures contract (Provisional).