After making negative start, S&P CNX -- Nifty -- ended the day’s trade above its crucial 14150 level. Market begun day on a somber note and continued trade in red zone with reports that India's tax pie seems to have undergone a subtle change with a sharp drop in direct tax collections resulting from a disproportionate impact of the COVID-19 carnage on incomes. The share of indirect taxes, which mainly comprise of levy on goods and services as well as import duty, has risen while that of direct taxes - made up of corporate and personal income tax - has gone down in 2020. However, in late afternoon session Index erased all its losses to enter into positive territory, as traders found support with Minister of State for Finance Anurag Thakur’s statement that the central government is making efforts to turn India into a manufacturing and export powerhouse. Thakur said manufacturing will now be broad-based in the country. Some comfort also came with Ministry of Finance has released the 10th 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.
Most of the sectoral indices ended in green except Auto, Metal and Realty. The top gainers from the F&O segment were Info Edge (India), Axis Bank and Indus Tower. On the other hand, the top losers were PEL, SAIL and ONGC. 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 2.14% and reached 20.46. The 50 share Nifty up by 66.60 points or 0.47% to settle at 14,199.50.
Nifty January 2021 futures closed at 14216.05 (LTP) on Tuesday, at a premium of 16.55 points over spot closing of 14199.50, while Nifty February 2021 futures ended at 14250.10 (LTP), at a premium of 50.60 points over spot closing. Nifty January futures saw an addition of 9,621 units, taking the total open interest (Contracts) to 1,78,724 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 8.10 points at 1973.10 (LTP) compared with spot closing of 1965.00. The numbers of contracts traded were 42,592 (Provisional).
Axis Bank January 2021 futures traded at a premium of 1.65 points at 665.80 (LTP) compared with spot closing of 664.15. The numbers of contracts traded were 36,369 (Provisional).
ICICI Bank January 2021 futures traded at a premium of 1.35 points at 538.00 (LTP) compared with spot closing of 536.65. The numbers of contracts traded were 24,358 (Provisional).
Infosys January 2021 futures traded at a premium of 1.95 points at 1292.30 (LTP) compared with spot closing of 1290.35. The numbers of contracts traded were 19,991 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 5.85 points at 1431.70 (LTP) compared with spot closing of 1425.85. The numbers of contracts traded were 19,411 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with a contraction of 226 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 3,461 units open interests. The maximum OI outstanding for Calls was at 14500 SP (17,904 units) and that for Puts was at 13000 SP (33,338 units). The respective Support and Resistance levels of Nifty are: Resistance 14,260.68 -- Pivot Point 14,154.42 -- Support --14,093.23.
The Nifty Put Call Ratio (PCR) finally stood at (1.73) for January month contract. The top five scrips with highest PCR on Asian Paints (1.14), Vedanta (0.95), Info Edge (0.94), Tata Steel (0.88) and Axis Bank (0.86).
Among most active underlying, Axis Bank witnessed an addition of 4,123 units of Open Interest in the January month futures contract followed by Bajaj Finance witnessed an addition of 1,293 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 7,599 units of Open Interest in the January month futures contract, Tata Steel witnessed a contraction of 30 units of Open Interest in the January month futures contract and ICICI Bank witnessed an addition of 3,589 units of Open Interest in the January month futures contract (Provisional).
