The local equity benchmark -- Nifty -- ended the first trading day of calendar year 2021 in green. Market made a positive start, as RBI announced it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 7, 2021. The decision was taken after a review of current liquidity and financial conditions. Further, index extended its gains, as traders took support with NITI Aayog Vice-Chairman Rajiv Kumar stating that India’s economy will grow at 10 per cent in real terms and by the end of next year it will reach pre-COVID-19 level. Talking about the farmers' protest against the three agriculture laws, the NITI Aayog Vice Chairman said the government is trying its best to get their understanding and that they are not misguided and their doubts are cleared.
Market maintained its gains throughout the session with Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data indicating that foreign direct investment (FDI) equity inflows into India increased by 21 percent to $35.33 billion during April-October period of FY21. In the year-ago period, FDI equity inflows stood at $29.31 billion. Finally, Nifty finished the trade above 14000 level for the first time ever.
Most of the sectoral indices ended in green except Financial Services, Bank and Private Bank. The top gainers from the F&O segment were BHEL, Cholamandalam Investment and Vodafone Idea. On the other hand, the top losers were ICICI Bank, SBI Life and Hindalco. In the index option segment, maximum OI continues to be seen in the 14100 - 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 7.27% and reached 19.56. The 50 share Nifty up by 36.75 points or 0.26% to settle at 14,018.50.
Nifty January 2021 futures closed at 14050.50 (LTP) on Friday, at a premium of 32.00 points over spot closing of 14018.50, while Nifty February 2021 futures ended at 14085.00 (LTP), at a premium of 66.50 points over spot closing. Nifty January futures saw an addition of 8,097 units, taking the total open interest (Contracts) to 1,65,439 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 6.50 points at 1994.50 (LTP) compared with spot closing of 1988.00. The numbers of contracts traded were 19,987 (Provisional).
SBIN January 2021 futures traded at a premium of 1.20 points at 280.25 (LTP) compared with spot closing of 279.05. The numbers of contracts traded were 11,265 (Provisional).
Escorts January 2021 futures traded at a premium of 8.45 points at 1296.95 (LTP) compared with spot closing of 1288.50. The numbers of contracts traded were 10,731(Provisional).
ICICI Bank January 2021 futures traded at a premium of 2.95 points at 530.75 (LTP) compared with spot closing of 527.80. The numbers of contracts traded were 10,445 (Provisional).
ITC January 2021 futures traded at a premium of 1.20 points at 215.10 (LTP) compared with spot closing of 213.90. The numbers of contracts traded were 10,388 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 2,131units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 5,388 units open interests. The maximum OI outstanding for Calls was at 14500 SP (16,317 units) and that for Puts was at 13000 SP (35,913 units). The respective Support and Resistance levels of Nifty are: Resistance 14,048.45 -- Pivot Point 14,019.90 -- Support -- 13,989.95.
The Nifty Put Call Ratio (PCR) finally stood at (1.57) for January month contract. The top five scrips with highest PCR on Asian Paints (1.25), SAIL (0.93), Vedanta (0.91), Tata Steel (0.87) and Kotak Mahindra Bank (0.84).
Among most active underlying, Reliance Industries witnessed an addition of 1,803 units of Open Interest in the January month futures contract followed by SBIN witnessed an addition of 1,013 units of Open Interest in the January month futures contract, BEL witnessed an addition of 388 units of Open Interest in the January month futures contract, TCS witnessed an addition of 802 units of Open Interest in the January month futures contract and Bharti Airtel witnessed an addition of 526 units of Open Interest in the January month futures contract (Provisional).
