S&P -- Nifty -- continued its southbound journey for second day on Monday and ended the day’s trade with a cut of over a percentage. Market made a cautious start and further extended its losses with former chief economic adviser Arvind Virmani’s statement that the Indian economy is likely to contract in the range of 5-7.5 per cent this fiscal (FY21) but will see a growth of 9 to 11 per cent in FY 2021-22. Further, Virmani said in the upcoming Budget, the government should come up with policies to accelerate India's economic growth. Market traded below neutral line despite RBI in its latest report has showed that bank credit grew 3.2 per cent to Rs 107.05 lakh crore in the first nine months (April-December) of the current financial year (FY21), against a growth of 2.7 per cent registered in the corresponding period of 2019-20. In the last leg of trade market touched its intraday low point, after report stated that the Indian economy is not recovering as fast as the government claims and the country's economy may contract 25 per cent in the current financial year. It further stated that due to a big decline in the GDP during the current financial year, the budget estimates have gone completely out of gear and, therefore, there is a need to correct the Budget. Traders failed to took solace with government data showing that India's exports rose marginally to $27.15 billion in December 2020, while imports surged 7.56 per cent to $42.59 billion. The merchandise exports were valued at $27.11 billion in December 2019, while imports had totalled $39.59 billion.
All the sectoral indices ended in red. The top gainers from the F&O segment were UPL, Reliance Industries and Jubilant FoodWorks. On the other hand, the top losers were Indiabulls Housing Finance, Petronet LNG and Mahindra & Mahindra Fin. 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 1.60% and reached 24.40. The 50 share Nifty down by 152.40 points or 1.06% to settle at 14,281.30.
Nifty January 2021 futures closed at 14251.65 (LTP) on Monday, at a discount of 29.65 points over spot closing of 14281.30, while Nifty February 2021 futures ended at 14292.00 (LTP), at a premium of 10.70 points over spot closing. Nifty January futures saw an addition of 325 units, taking the total open interest (Contracts) to 1,71,004 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 0.20 points at 1973.00 (LTP) compared with spot closing of 1972.80. The numbers of contracts traded were 68,660 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 1.05 points at 1481.05 (LTP) compared with spot closing of 1480.00. The numbers of contracts traded were 42,409 (Provisional).
ITC January 2021 futures traded at a premium of 0.40 points at 218.45 (LTP) compared with spot closing of 218.05. The numbers of contracts traded were 29,412 (Provisional).
Tata Motors January 2021 futures traded at a premium of 0.50 points at 245.00 (LTP) compared with spot closing of 244.50. The numbers of contracts traded were 25,920 (Provisional).
SBIN January 2021 futures traded at a premium of 1.00 points at 293.45 (LTP) compared with spot closing of 292.45. The numbers of contracts traded were 24,563 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 5,324 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 491units open interests. The maximum OI outstanding for Calls was at 15000 SP (33,614 units) and that for Puts was at 14000 SP (41,920 units). The respective Support and Resistance levels of Nifty are: Resistance 14,419.37 -- Pivot Point 14,321.08 -- Support -- 14,183.02.
The Nifty Put Call Ratio (PCR) finally stood at (1.39) for January month contract. The top five scrips with highest PCR on Vedanta (1.08), Tata Motors (0.87), DLF (0.82), TCS (0.82) and ACC (0.72).
Among most active underlying, Tata Motors witnessed a contraction of 764 units of Open Interest in the January month futures contract followed by Reliance Industries witnessed a contraction of 1,225 units of Open Interest in the January month futures contract, HDFC Bank witnessed a contraction of 132 units of Open Interest in the January month futures contract, Tata Steel witnessed an addition of 540 units of Open Interest in the January month futures contract and SBIN witnessed an addition of 398 units of Open Interest in the January month futures contract (Provisional).
