S&P CNX -- Nifty -- finished the Monday’s session at record highs with the gains of above half a percent. Market made positive start and continued trade in green zone, as Drug Controller General of India (DCGI) approved the emergency use of both Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin for immunisation against Covid-19 in India. However, in late morning session market entered into red zone for little time and soon bounce back into positive territory, as foreign portfolio investors (FPIs) remained net buyers for the third month in a row by investing Rs 68,558 crore in December in Indian markets as global investors continued betting on emerging markets.
Further its extended gains, as traders took support with data showing that goods and Services Tax (GST) collections touched a record-high of over Rs 1.15 lakh crore in December 2020, in signs that the economy continues to reflate after a strict lockdown. Mop-up from GST in December 2020 was 12 percent higher than Rs 1.03 lakh crore collected in the same month of 2019. In last leg of trade, market touched its intraday high point and ended the session near it, as India’s manufacturing sector continued to strengthen in December with companies stepping up production and input buying amid efforts to rebuild their inventories following pandemic-driven business closures earlier in 2020. Data released by analytics firm IHS Markit showed Purchasing Managers’ Index (PMI) for manufacturing sector picked up marginally in December to 56.4 from 56.3 a month ago. A figure above 50 indicates expansion, while sub-50 signals contraction.
Most of the sectoral indices ended in green except Bank and Private Bank. The top gainers from the F&O segment were Tata Steel, Cholamandalam Investment and Hindalco. On the other hand, the top losers were Jubilant FoodWorks, Hero Motocorp and ZEEL. 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 increased by 2.40% and reached 20.03. The 50 share Nifty up by 114.40 points or 0.82% to settle at 14,132.90.
Nifty January 2021 futures closed at 14173.35 on Monday, at a premium of 40.45 points over spot closing of 14132.90, while Nifty February 2021 futures ended at 14208.65, at a premium of 75.75 points over spot closing. Nifty January futures saw an addition of 11,224 units, taking the total open interest (OI) to 1,73,477 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 11.30 points at 2001.55 (LTP) compared with spot closing of 1990.25. The numbers of contracts traded were 49,254 (Provisional).
Tata Steel January 2021 futures traded at a premium of 0.50 points at 697.40 (LTP) compared with spot closing of 696.90. The numbers of contracts traded were 28,363 (Provisional).
TCS January 2021 futures traded at a discount of 0.70 points at 3042.00 (LTP) compared with spot closing of 3042.70. The numbers of contracts traded were 21,930 (Provisional).
Infosys January 2021 futures traded at a premium of 1.60 points at 1289.60 (LTP) compared with spot closing of 1288.00. The numbers of contracts traded were 19,473 (Provisional).
ICICI Bank January 2021 futures traded at a premium of 2.00 points at 533.70 (LTP) compared with spot closing of 531.70. The numbers of contracts traded were 17,110 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 1,913units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 5,041units open interests. The maximum OI outstanding for Calls was at 14500 SP (18,099 units) and that for Puts was at 13000 SP (33,032 units). The respective Support and Resistance levels of Nifty are: Resistance 14,202.65 -- Pivot Point 14,078.20 -- Support -- 14,008.45.
The Nifty Put Call Ratio (PCR) finally stood at (1.60) for January month contract. The top five scrips with highest PCR on Tata Steel (1.08), Asian Paints (1.07), Vedanta (0.96), SAIL (0.88) and Colgate-Palmolive (0.87).
Among most active underlying, Tata Steel witnessed an addition of 2,501 units of Open Interest in the January month futures contract followed by Reliance Industries witnessed an addition of 4,875 units of Open Interest in the January month futures contract, TCS witnessed an addition of 1,980 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 1,483 units of Open Interest in the January month futures contract and Bajaj Finance witnessed an addition of 385 units of Open Interest in the January month futures contract (Provisional).
