The local benchmark -- Nifty -- ended the last trading day of week with the gains of over a percent. Market made positive start, as traders found support with report that India in 2020 has been one of the biggest and fastest-growing technology markets in the world. Digital and technology adoption in India has been increasing at a steady rate over the last few years, and the current COVID-19 pandemic has accelerated the rate of technology adoption across sectors, including in high involvement services such as education and healthcare. Further, market extended its gains, as the Central Board of Indirect Taxes & Customs (CBIC) has introduced liberalised Authorised Economic Operator package for micro, small and medium enterprises (MSMEs) for swift customs clearances. In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry. In last leg of trade, market touched its intraday highpoint and ended the session above 14300 level with report that the RBI will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 14. The decision was taken after a review of current liquidity and financial conditions.
Most of the sectoral indices ended in green except Metal and PSU Bank. The top gainers from the F&O segment were Maruti Suzuki India, Tech Mahindra and ZEEL. On the other hand, the top losers were IDFC First Bank, Vedanta and Mahindra & Mahindra Fin. Services. 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 0.97% and reached 20.82. The 50 share Nifty up by 209.90 points or 1.48% to settle at 14,347.25.
Nifty January 2021 futures closed at 14374.90 (LTP) on Friday, at a premium of 27.65 points over spot closing of 14347.25, while Nifty February 2021 futures ended at 14409.00 (LTP), at a premium of 61.75 points over spot closing. Nifty January futures saw an addition of 17,187 units, taking the total open interest (Contracts) to 1,81,295 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 6.55 points at 1940.55 (LTP) compared with spot closing of 1934.00. The numbers of contracts traded were 49,439 (Provisional).
Infosys January 2021 futures traded at a premium of 3.80 points at 1315.30 (LTP) compared with spot closing of 1311.50. The numbers of contracts traded were 30,749 (Provisional).
Maruti Suzuki January 2021 futures traded at a premium of 26.05 points at 8029.95 (LTP) compared with spot closing of 8003.90. The numbers of contracts traded were 25,782 (Provisional).
TCS January 2021 futures traded at a discount of 6.70 points at 3116.05 (LTP) compared with spot closing of 3122.75. The numbers of contracts traded were 22,954 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 6.50 points at 1439.50 (LTP) compared with spot closing of 1433.00. The numbers of contracts traded were 19,176 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 2,342 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 4,341 units open interests. The maximum OI outstanding for Calls was at 14500 SP (20,552 units) and that for Puts was at 13000 SP (34,079 units). The respective Support and Resistance levels of Nifty are: Resistance 14,402.48 -- Pivot Point 14,312.07 -- Support -- 14,256.83.
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 (1.10), Tech Mahindra (0.96), Ashok Leyland (0.96) and Tata Steel (0.94).
Among most active underlying, Infosys witnessed a contraction of 495 units of Open Interest in the January month futures contract followed by Reliance Industries witnessed an addition of 3,968 units of Open Interest in the January month futures contract, TCS witnessed an addition of 390 units of Open Interest in the January month futures contract, Maruti Suzuki witnessed an addition of 1,126 units of Open Interest in the January month futures contract and Wipro witnessed an addition of 14 units of Open Interest in the January month futures contract (Provisional).
