After altering between green and red zone, Nifty finished the Wednesday’s trade on flat note. Market made positive start, as government data showed that Consumer Price Index (CPI)-based inflation eased to 4.59 per cent in December 2020 compared to 6.93 per cent in November. Food inflation declined to 3.41 per cent in December, compared to 9.5 per cent in the previous month. Further, market erased its gains to trade volatile, as State Bank of India’s (SBI) Ecowrap report has said India's fiscal deficit in the current financial year (FY21) is likely to reach 7.4 per cent of the GDP on the back of enhanced government expenditure amid the pandemic. The report noted that as per the first advanced estimate of the GDP, real GDP will contract by 7.7 per cent in FY21, and nominal GDP growth is expected at (-) 4.2 per cent. Accordingly, the nominal GDP for FY22 would grow by 15 per cent to Rs 224.04 lakh crore.
In late afternoon session, market continued its weak trade, as India’s factory output or Index of Industrial Production (IIP) contracted 1.9 percent for November 2020 mainly due to poor showing by manufacturing and mining sectors. Industrial production of the country had grown at 3.6 per cent in October 2020 and 2.1 per cent in November 2019. However, in last leg of trade, index recover from losses to end the session on flat note.
Most of the sectoral indices ended in green except Realty, Financial Services and Pharma. The top gainers from the F&O segment were M&M, Bank Baroda and SBIN. On the other hand, the top losers were Bandhan Bank, Cholamandalam Investment and Fin Co 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 1.94% and reached 23.29. The 50 share Nifty up by 1.40 points or 0.009% to settle at 14,564.85.
Nifty January 2021 futures closed at 14591.15 (LTP) on Wednesday, at a premium of 26.30 points over spot closing of 14564.85, while Nifty February 2021 futures ended at 14627.70 (LTP), at a premium of 62.85 points over spot closing. Nifty January futures saw a contraction of 4,453 units, taking the total open interest (OI) to 1,80,766 units. The near month derivatives contract will expire on January 28, 2021 (Provisional).
From the most active contracts, Bharti Airtel January 2021 futures traded at a premium of 2.05 points at 578.35 (LTP) compared with spot closing of 576.30. The numbers of contracts traded were 56,751(Provisional).
Reliance Industries January 2021 futures traded at a premium of 3.70 points at 1939.70 (LTP) compared with spot closing of 1936.00. The numbers of contracts traded were 55,608 (Provisional).
SBIN January 2021 futures traded at a premium of 1.45 points at 307.40 (LTP) compared with spot closing of 305.95. The numbers of contracts traded were 41,484 (Provisional).
ITC January 2021 futures traded at a premium of 1.15 points at 212.35 (LTP) compared with spot closing of 211.20. The numbers of contracts traded were 29,144 (Provisional).
Infosys January 2021 futures traded at a premium of 7.30 points at 1395.95 (LTP) compared with spot closing of 1388.65. The numbers of contracts traded were 27,626 (Provisional).
Among, Nifty calls, 15000 SP from the January month expiry was the most active call with an addition of 3,257 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 1,884 units open interests. The maximum OI outstanding for Calls was at 15000 SP (31,048 units) and that for Puts was at 14000 SP (41,760 units). The respective Support and Resistance levels of Nifty are: Resistance 14,666.90 -- Pivot Point 14,551.30 -- Support -- 14,449.25.
The Nifty Put Call Ratio (PCR) finally stood at (1.79) for January month contract. The top five scrips with highest PCR on Vedanta (1.20), Tata Motors (1.05), SBIN (0.92), Ashok Leyland (0.90) and Axis Bank (0.80).
Among most active underlying, Bharti Airtel witnessed an addition of 1,829 units of Open Interest in the January month futures contract followed by SBIN witnessed an addition of 163 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 550 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 1,558 units of Open Interest in the January month futures contract and Bajaj Finance witnessed an addition of 2,222 units of Open Interest in the January month futures contract (Provisional).
