S&P CNX -- Nifty -- exhibited a smart pull back in Tuesday’s trade ending with a gain of over one and half percentage. Market made optimistic start, as traders found solace with Icra’s report stating that economic activity recorded a broad-based improvement in December as against November, showing a return of demand. Icra said most of the indicators have displayed a year-on-year (y-o-y) expansion in December 2020, which signals a tentative return to pre-COVID normalcy. Meanwhile, India offers tremendous business opportunities to the US in various sectors such as manufacturing and the COVID-19 pandemic has presented a unique opportunity to the country to work with America to build resilient and reliable supply chains that will have the ability to weather future shocks, eminent speakers told a virtual forum ahead of the India Subcontracting Expo. The India Subcontracting Expo 2021 focusing on the North American region is scheduled to be held February 16-19 virtually.
Market extended its upward momentum, as Finance Ministry has released the 12th instalment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 72,000 crore. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax (GST). In the last leg of trade, market touched its intraday highpoint and ended the session above 14500 level.
All the sectoral indices ended in green. The top gainers from the F&O segment were IDFC First Bank, L&T Finance Holdings and Cholamandalam Investment and Fin Co. On the other hand, the top losers were Indus Towers, ICICI Lombard General Insurance and Tata Consumer Products. 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 decreased by 6.13% and reached 22.90. The 50 share Nifty up by 239.85 points or 1.68% to settle at 14,521.15.
Nifty January 2021 futures closed at 14572.00 (LTP) on Tuesday, at a premium of 50.85 points over spot closing of 14521.15, while Nifty February 2021 futures ended at 14604.95 (LTP), at a premium of 83.80 points over spot closing. Nifty January futures saw an addition of 5,689 units, taking the total open interest (Contracts) to 1,68,188 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 9.00 points at 2024.00 (LTP) compared with spot closing of 2015.00. The numbers of contracts traded were 65,511 (Provisional).
Tata Steel January 2021 futures traded at a premium of 3.15 points at 685.50 (LTP) compared with spot closing of 682.35. The numbers of contracts traded were 22,540 (Provisional).
Bajaj Finance January 2021 futures traded at a premium of 22.65 points at 4990.65 (LTP) compared with spot closing of 4968.00. The numbers of contracts traded were 22,496 (Provisional).
Tata Motors January 2021 futures traded at a premium of 0.85 points at 259.60 (LTP) compared with spot closing of 258.75. The numbers of contracts traded were 21,771 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 4.95 points at 1506.80 (LTP) compared with spot closing of 1501.85. The numbers of contracts traded were 21,240 (Provisional).
Among, Nifty calls, 15000 SP from the January month expiry was the most active call with an addition of 5,720 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 2,381units open interests. The maximum OI outstanding for Calls was at 15000 SP (38,968 units) and that for Puts was at 14000 SP (44,142 units). The respective Support and Resistance levels of Nifty are: Resistance 14,594.52 -- Pivot Point 14,472.68 -- Support -- 14,399.32.
The Nifty Put Call Ratio (PCR) finally stood at (1.37) for January month contract. The top five scrips with highest PCR on Vedanta (1.09), Tata Motors (0.89), TCS (0.85), UPL (0.83) and DLF (0.75).
Among most active underlying, Reliance Industries witnessed a contraction of 1,803 units of Open Interest in the January month futures contract followed by Tata Motors witnessed an addition of 460 units of Open Interest in the January month futures contract, Bajaj Finance witnessed a contraction of 16 units of Open Interest in the January month futures contract, Tata Steel witnessed an addition of 2,254 units of Open Interest in the January month futures contract and HDFC Bank witnessed an addition of 1,620 units of Open Interest in the January month futures contract (Provisional).
