Nifty ends flat on last trading day of rollercoaster year

In highly volatile session, S&P CNX --Nifty-- ended last trading day of rollercoaster year on flat note. Market made negative start as Finance ministry in its latest quarterly report on public debt management has said that total liabilities of the government increased to Rs 107.04 lakh crore at end of Q2 (July- September) of FY21 from Rs 101.3 lakh crore at end of Q1 (April-June) of FY21. This represented a quarter-on-quarter increase of 5.6 percent in Q2 FY21. Soon, market turned volatile despite President Vladimir Putin expressed hope that next year Russia and India would continue to work towards stepping up constructive bilateral cooperation as well as coordinating efforts to address topical issues on the regional and global agendas. Market traded volatile but with limited losses till the end of the session, as RBI data showed that bank credit grew 6.05 percent to Rs 105.49 lakh crore, while deposits rose 11.33 percent to Rs 144.82 lakh crore during December 5-18, 2020. Besides, India’s current account surplus moderated to $15.5 billion (2.4 per cent of Gross Domestic Product) in quarter ended September 2020 (Q2FY21) from $19.2 billion (3.8 per cent of GDP) in (Q1FY21). The current account balance was in deficit to the tune of $7.6 billion in Q2 of 2019-20 (1.1 per cent of GDP).

Traders were seen piling positions in Auto, Financial Services and Media sector while selling was witnessed in FMGC, IT and PSU Bank sector stocks. The top gainers from the F&O segment were SAIL, BEL and Vodafone Idea. On the other hand, the top losers were GMR Infrastructure, Shree Cement and ACC. In the index option segment, maximum OI continues to be seen in the 14500 - 15,500 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 0.07% and reached 21.10. The 50 share Nifty down by 0.20 points or 0.001% to settle at 13,981.75.

Nifty January 2021 futures closed at 13998.00 (LTP) on Thursday, at a premium of 16.25 points over spot closing of 13981.75, while Nifty February 2021 futures ended at 14030.00 (LTP), at a premium of 48.25 points over spot closing. Nifty January futures saw an addition of 46,112 units, taking the total open interest (Contracts) 1,65,978 units. The near month derivatives contract will expire on January 28, 2021 (Provisional).

From the most active contracts, Reliance Industries January 2021 futures traded at a premium of 9.65 points at 1991.45 (LTP) compared with spot closing of 1981.80. The numbers of contracts traded were 64,603 (Provisional).

HDFC January 2021 futures traded at a premium of 11.00 points at 2560.95 (LTP) compared with spot closing of 2549.95. The numbers of contracts traded were 29,522 (Provisional).

ICICI Bank January 2021 futures traded at a premium of 1.10 points at 535.10 (LTP) compared with spot closing of 534.00. The numbers of contracts traded were 24,636 (Provisional).

Infosys January 2021 futures traded at a premium of 2.50 points at 1256.00 (LTP) compared with spot closing of 1253.50. The numbers of contracts traded were 24,464 (Provisional).

HDFC Bank January 2021 futures traded at a premium of 1.65 points at 1440.10 (LTP) compared with spot closing of 1438.45. The numbers of contracts traded were 21,021 (Provisional).

Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 2,686 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 6,461 units open interests. The maximum OI outstanding for Calls was at 15000 SP (14,345 units) and that for Puts was at 13000 SP (31,929 units). The respective Support and Resistance levels of Nifty are: Resistance 14,025.58 -- Pivot Point 13,981.02 -- Support -- 13,937.18.

The Nifty Put Call Ratio (PCR) finally stood at (1.53) for January month contract. The top five scrips with highest PCR on  Canara Bank (1.53), Asian Paints (1.26), Colgate-Palmolive (1.13), SAIL (1.03) and Tata Steel (0.93).

Among most active underlying, Reliance Industries witnessed an addition of 31,673 units of Open Interest in the January month futures contract followed by HDFC witnessed an addition of 17,919 units of Open Interest in the January month futures contract, Bharti Airtel witnessed an addition of 8,585 units of Open Interest in the January month futures contract, Bajaj Finance witnessed an addition of 2,610 units of Open Interest in the January month futures contract and Infosys witnessed an addition of 12,983 units of Open Interest in the January month futures contract (Provisional).