After making strong start, Nifty wiped out all its initial gains and ended the session in red zone on account of profit booking by investors. Market opened higher, as the Department for Promotion of Industry and Internal Trade (DPIIT) has launched a regulatory compliance portal that will act as a bridge between citizens, industries and the government to minimize burdensome compliances. It will also act as a first-of-its-kind central online repository of all central and state-level compliances. Further, index maintained its health gains, as Reserve Bank said India's GDP is within the striking distance of attaining positive growth, observing that the letter ‘V’ in the V-shaped recovery stands for vaccine. The Indian government launched the world's biggest vaccination drive on January 16 to protect people from COVID-19. However, market failed to protect gains and entered into negative territory in the last leg of trade, after the rating agency Crisil in its latest study report has stated that the combined fiscal deficit of the states will hit a peak of Rs 8.7 lakh crore or 4.7 per cent of their Gross Domestic Product (GDP) this fiscal (FY21) on the back of steep fall in tax collections owing to disruptions inflicted by the pandemic.
All the sectoral indices ended in red. The top gainers from the F&O segment were Havells, Apollo Tyre and Tata Motors. On the other hand, the top losers were L&TFH, Cholamandalam Investment and IGL. 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 2.92% and reached 22.18. The 50 share Nifty down by 54.35 points or 0.37% to settle at 14,590.35.
Nifty January 2021 futures closed at 14639.80 (LTP) on Thursday, at a premium of 49.45 points over spot closing of 14590.35, while Nifty February 2021 futures ended at 14678.85 (LTP), at a premium of 88.50 points over spot closing. Nifty January futures saw an addition of 0.01 million (mn) units, taking the total open interest (OI) to 1,54,324 mn 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 6.55 points at 2113.55 (LTP) compared with spot closing of 2107.00. The numbers of contracts traded were 77,392 (Provisional).
Tata Motors January 2021 futures traded at a discount of 0.35 points at 292.10 (LTP) compared with spot closing of 292.45. The numbers of contracts traded were 43,757 (Provisional).
Bajaj Finance January 2021 futures traded at a premium of 23.75 points at 5138.05 (LTP) compared with spot closing of 5114.30. The numbers of contracts traded were 36,912 (Provisional).
Asian Paint January 2021 futures traded at a premium of 6.00 points at 2746.00 (LTP) compared with spot closing of 2740.00. The numbers of contracts traded were 27,074 (Provisional).
Havells January 2021 futures traded at a premium of 1.95 points at 1133.15 (LTP) compared with spot closing of 1131.20. The numbers of contracts traded were 25,209 (Provisional).
Among, Nifty calls, 14800 SP from the January month expiry was the most active call with an addition of 7,930 units open interests. Among Nifty puts, 14600 SP from the January month expiry was the most active put with an addition of 13,602 units open interests. The maximum OI outstanding for Calls was at 15000 SP (52,465 units) and that for Puts was at 14000 SP (37,788 units). The respective Support and Resistance levels of Nifty are: Resistance 14,723.52 -- Pivot Point 14,620.38 -- Support -- 14,487.22.
The Nifty Put Call Ratio (PCR) finally stood at (1.15) for January month contract. The top five scrips with highest PCR on Vedanta (1.04), UPL (1.00), TCS (0.90), Apollo Tyre (0.88) and Havells (0.86).
Among most active underlying, Tata Motors witnessed an addition of 925 units of Open Interest in the January month futures contract followed by Bajaj Finance witnessed an addition of 2,705 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 2,011 units of Open Interest in the January month futures contract, Havells witnessed an addition of 500 units of Open Interest in the January month futures contract and Asian Paint witnessed an addition of 1,902 units of Open Interest in the January month futures contract (Provisional).
