National Stock Exchange (NSE) -- Nifty -- ended at another record closing high on Monday. The day began on a positive note with Assocham’s statement that India's economy is showing decisive signs of a V-shaped recovery in 2021 with the return of consumer confidence, robust financial markets, an uptick in manufacturing and exporters braving it out in the global market with never-say-die spirit. Some support also came with report that India’s exports grew 16.22 percent YoY to $6.21 billion in the first week of January, mainly driven by healthy growth in pharmaceuticals, and engineering sectors, reflecting signs of revival. Imports during January 1-7 this year too increased by 1.07 percent to $8.7 billion as against $8.6 billion in the same period of 2020. Market continued its fine fettle trade, as IHS Markit said Indian economy is likely to rebound with an 8.9 per cent growth in the fiscal year beginning April 2021 after economic activity showed significant improvement in the last quarter.
In last leg of trade, market extended its gains as Fitch Ratings expects India's economy to contract by a record 9.4 per cent in the current fiscal year ending March 2021 (FY21) amid the shock from coronavirus pandemic but this represents a 1.1 percentage point improvement from its previous forecast, reflecting a stronger-than-anticipated rebound in 3Q 2020. Risks to the growth outlook appear to have eased in recent weeks as vaccine rollouts began in other parts of the world. Fitch said forward-looking indicators suggest gathering momentum in the domestic economy, supporting its forecast that output will grow by 11 per cent in FY22.
Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Metal, Bank and Media sector stocks. The top gainers from the F&O segment were Tata Motors, HCL Tech and Infosys. On the other hand, the top losers were ZEEL, RBL Bank and Shriram Transport Finance Company. 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 8.57% and reached 22.41. The 50 share Nifty up by 137.50 points or 0.96% to settle at 14,484.75.
Nifty January 2021 futures closed at 14493.50 (LTP) on Monday, at a premium of 8.75 points over spot closing of 14484.75, while Nifty February 2021 futures ended at 14528.00 (LTP), at a premium of 43.25 points over spot closing. Nifty January futures saw an addition of 10,964 units, taking the total open interest (OI) to 1,88,076 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 7.25 points at 1906.25 (LTP) compared with spot closing of 1899.00. The numbers of contracts traded were 49,468 (Provisional).
Infosys January 2021 futures traded at a premium of 0.70 points at 1376.65 (LTP) compared with spot closing of 1375.95. The numbers of contracts traded were 34,081 (Provisional).
TCS January 2021 futures traded at a discount of 4.00 points at 3166.45 (LTP) compared with spot closing of 3170.45. The numbers of contracts traded were 29,968 (Provisional).
Tata Motors January 2021 futures traded at a premium of 0.45 points at 223.65 (LTP) compared with spot closing of 223.20. The numbers of contracts traded were 27,147 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 5.60 points at 1458.20 (LTP) compared with spot closing of 1452.60. The numbers of contracts traded were 22,531(Provisional).
Among, Nifty calls, 15000 SP from the January month expiry was the most active call with an addition of 5,417 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 7,005 units open interests. The maximum OI outstanding for Calls was at 15000 SP (25,332 units) and that for Puts was at 13000 SP (35,407 units). The respective Support and Resistance levels of Nifty are: Resistance 14,527.60 -- Pivot Point 14,455.35 -- Support -- 14,412.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.74) for January month contract. The top five scrips with highest PCR on Vedanta (1.23), Asian Paints (1.08), Ashok Leyland (1.01), Tata Motors (0.94) and Shriram Transport Finance (0.89).
Among most active underlying, Tata Motors witnessed an addition of 802 units of Open Interest in the January month futures contract followed by Infosys witnessed a contraction of 407 units of Open Interest in the January month futures contract, TCS witnessed a contraction of 2,873 units of Open Interest in the January month futures contract, Wipro witnessed an addition of 337 units of Open Interest in the January month futures contract and Reliance Industries witnessed an addition of 5,007 units of Open Interest in the January month futures contract(Provisional).
