Nifty gave powerful performance on Tuesday by surpassing its psychological level of 13,900. Index made positive start, as Union minister Nitin Gadkari said that the Micro, Small and Medium Enterprises Ministry is contemplating fresh plans and laws to find a solution of the receivables issue as outstanding dues are creating working capital problem for the sector. The MSME and Road Transport minister acknowledged that the receivables issue continues to be a major problem. Market maintained its trade in green zone, as Ministry of Finance has released the 9th weekly instalment 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.
Some support also came with report of UN stating that the India's economy could prove to be the ‘most resilient’ in the subregion of South and South-West Asia over the long term, the positive but lower economic growth post COVID-19 pandemic and the country's large market will continue to attract investments. The growth, however, was mainly driven by India, which accounted for 77 percent of the total inflows and received $51 billion in 2019, up 20 percent from the previous year.
Traders were seen piling positions in Bankex, IT and PSU Bank sector while selling was witnessed in Auto, Media and Metal sector stocks. The top gainers from the F&O segment were Indusind Bank, IGL and GMR Infrastructure. On the other hand, the top losers were Jindal Steel, MFSL and Hindalco. 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 increased by 1.77% and reached 20.79. The 50 share Nifty up by 59.40 points or 0.43% to settle at 13,932.60.
Nifty December 2020 futures closed at 13932.00 (LTP) on Tuesday, at a discount of 0.60 points over spot closing of 13932.60, while Nifty January 2021 futures ended at 13984.40 (LTP), at a premium of 51.80 points over spot closing. Nifty December futures saw a contraction of 4,544 units, taking the total open interest (Contracts) to 1,20,497 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).
From the most active contracts, ICICI Bank December 2020 futures traded at a premium of 0.40 points at 530.50 (LTP) compared with spot closing of 530.10. The numbers of contracts traded were 33,988 (Provisional).
Reliance Industries December 2020 futures traded at a discount of 0.85 points at 1986.15 (LTP) compared with spot closing of 1987.00. The numbers of contracts traded were 29,595 (Provisional).
Kotak Mahindra Bank December 2020 futures traded at a discount of 1.10 points at 1997.40 (LTP) compared with spot closing of 1998.50. The numbers of contracts traded were 25,215 (Provisional).
Infosys December 2020 futures traded at a discount of 0.65 points at 1249.20 (LTP) compared with spot closing of 1249.85. The numbers of contracts traded were 24,402 (Provisional).
Indusind Bank December 2020 futures traded at a premium of 0.85 points at 917.35 (LTP) compared with spot closing of 916.50. The numbers of contracts traded were 24,058 (Provisional).
Among, Nifty calls, 14000 SP from the December month expiry was the most active call with an addition of 15,796 units open interests. Among Nifty puts, 13800 SP from the December month expiry was the most active put with an addition of 12,307 units open interests. The maximum OI outstanding for Calls was at 14000 SP (78,644 units) and that for Puts was at 13000 SP (80,861 units). The respective Support and Resistance levels of Nifty are: Resistance 13,980.17 -- Pivot Point 13,920.03 -- Support -- 13,872.47.
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for December month contract. The top five scrips with highest PCR on Asian Paints (2.16), SAIL (1.10), Kotak Mahindra Bank (1.07), Titan Company (1.04) and HDFC (1.03).
Among most active underlying, Reliance Industries witnessed an addition of 3,651 units of Open Interest in the December month futures contract followed by ICICI bank witnessed an addition of 9,244 units of Open Interest in the December month futures contract, Kotak Mahindra Bank witnessed a contraction of 7,344 units of Open Interest in the December month futures contract, Bharti Airtel witnessed an addition of 390 units of Open Interest in the December month futures contract and Bajaj Finance witnessed an addition of 76 units of Open Interest in the December month futures contract (Provisional).
