After making negative start, domestic index -- Nifty -- finished the Tuesday’s session above its psychological level of 14,550. Market started off with marginal losses and continued weak trade, as Reserve Bank of India (RBI) warned that the Indian banking system’s bad loans may rise to a two-decade high on the back of COVID-19 induced stress. In its latest Financial Stability Report (FSR), the RBI said Public Sector Banks (PSBs) may see gross NPAs rise from 9.7 percent in September 2020 to 16.2 percent by September 2021. However, in late morning session, index entered into green zone after the Ministry of Finance has released the 11th 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.
Further, market extended its gains to trade above 14550 level, as ICRA Ratings in its latest report has said it expects India’s real gross domestic product (GDP) to grow by 10.1 per cent in FY2022. However, it said the value of GDP in the next financial year will only mildly surpass the level that had been recorded in FY2020. Some support also came with report that Bharat Biotech inked a purchase agreement with the Government of India on January 11 to provide 55 lakh doses of COVID-19 vaccine Covaxin at Rs 295 per dose. The Indian pharma firm will be providing its coronavirus vaccine directly to 12 states, and the process will be completed in two days by January 14.
Most of the sectoral indices ended in green except FMGC, IT and Pharma. The top gainers from the F&O segment were Tata Motors, Bank Baroda and DLF. On the other hand, the top losers were Bandhan Bank, Asian paint and ICICI Lombard General Insurance. 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 2.07% and reached 22.85. The 50 share Nifty up by 78.70 points or 0.54% to settle at 14,563.45.
Nifty January 2021 futures closed at 14599.90 (LTP) on Tuesday, at a premium of 36.45 points over spot closing of 14563.45, while Nifty February 2021 futures ended at 14634.10 (LTP), at a premium of 70.65 points over spot closing. Nifty January futures saw an addition of 11,127 units, taking the total open interest (Contracts) to 1,95,819 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 4.50 points at 1960.00 (LTP) compared with spot closing of 1955.50. The numbers of contracts traded were 74,973 (Provisional).
Tata Motors January 2021 futures traded at a premium of 1.50 points at 238.75 (LTP) compared with spot closing of 237.25. The numbers of contracts traded were 59,624 (Provisional).
Bharti Airtel January 2021 futures traded at a premium of 3.05 points at 571.80 (LTP) compared with spot closing of 568.75. The numbers of contracts traded were 25,543 (Provisional).
SBIN January 2021 futures traded at a premium of 1.70 points at 294.90 (LTP) compared with spot closing of 293.20. The numbers of contracts traded were 25,406 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 5.10 points at 1485.65 (LTP) compared with spot closing of 1480.55. The numbers of contracts traded were 24,692 (Provisional).
Among, Nifty calls, 15000 SP from the January month expiry was the most active call with an addition of 2,419 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 1,072 units open interests. The maximum OI outstanding for Calls was at 15000 SP (27,738 units) and that for Puts was at 14000 SP (39,926 units). The respective Support and Resistance levels of Nifty are: Resistance 14,625.12 -- Pivot Point 14,528.98 -- Support -- 14,467.32.
The Nifty Put Call Ratio (PCR) finally stood at (1.82) for January month contract. The top five scrips with highest PCR on Vedanta (1.17), Tata Motors (1.03), Ashok Leyland (0.98),DLF(0.92) and SBIN (0.87).
Among most active underlying, Tata Motors witnessed an addition of 1,628 units of Open Interest in the January month futures contract followed by Reliance Industries witnessed an addition of 6,111 units of Open Interest in the January month futures contract, Bharti Airtel witnessed an addition of 3,723 units of Open Interest in the January month futures contract, SBIN witnessed an addition of 2,357 units of Open Interest in the January month futures contract and Tata Steel witnessed an addition of 948 units of Open Interest in the January month futures contract (Provisional).
