Indian benchmark -- Nifty continued its fall on third day and finished the session with a cut of over half a percent. Initially, market made a decent opening with private report that India’s economy showed signs a recovery is taking root as waning virus cases and a vaccine roll-out supported sentiment and as focus turns to further stimulus possible in the upcoming federal budget. However, soon market turned volatile, with the RBI data showing that the country's foreign exchange reserves declined by $1.839 billion to $584.242 billion in the week ended January 15. Traders failed to took support with report that foreign portfolio investors (FPI) remained net buyers to the tune of Rs 18,456 crore so far in January as global liquidity led to continued investment in emerging markets. Further, market added more losses even after UN has said that foreign Direct Investment into India rose by 13 per cent in 2020, boosted by interest in the digital sector, and while fund flows 'declined most strongly' in major economies such as the UK, the US and Russia due to the COVID-19 pandemic, India and China ‘bucked the trend’. Finally, Nifty ended the day’s trade below its 14250 level.
Traders were seen piling positions in Bankex, Metal and Pharma sector while selling was witnessed in FMGC, IT and Media sector stocks. The top gainers from the F&O segment were Aurobindo Pharma, Grasim Industries and Shriram Transport Finance. On the other hand, the top losers were Info Edge (India), Vodafone Idea and Apollo Tyres. 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 3.66% and reached 23.25. The 50 share Nifty down by 133.00 points or 0.93% to settle at 14,238.90.
Nifty January 2021 futures closed at 14254.00 (LTP) on Monday, at a premium of 15.10 points over spot closing of 14238.90, while Nifty February 2021 futures ended at 14303.75 (LTP), at a premium of 64.85 points over spot closing. Nifty January futures saw a contraction of 6,475 units, taking the total open interest (OI) to 1,44,971 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 4.10 points at 1939.25 (LTP) compared with spot closing of 1935.15. The numbers of contracts traded were 92,193 (Provisional).
Kotak Mahindra Bank January 2021 futures traded at a premium of 2.90 points at 1795.85 (LTP) compared with spot closing of 1792.95. The numbers of contracts traded were 45,194 (Provisional).
ICICI Bank January 2021 futures traded at a premium of 0.45 points at 537.75 (LTP) compared with spot closing of 537.30. The numbers of contracts traded were 36,314 (Provisional).
HDFC Bank January 2021 futures traded at a discount of 2.85 points at 1464.15 (LTP) compared with spot closing of 1467.00. The numbers of contracts traded were 33,336 (Provisional).
Infosys January 2021 futures traded at a discount of 0.30 points at 1334.70 (LTP) compared with spot closing of 1335.00. The numbers of contracts traded were 29,201 (Provisional).
Among, Nifty calls, 14500 SP from the January month expiry was the most active call with an addition of 23,027 units open interests. Among Nifty puts, 14200 SP from the January month expiry was the most active put with an addition of 10,687 units open interests. The maximum OI outstanding for Calls was at 15000 SP (79,407 units) and that for Puts was at 14000 SP (44,807 units). The respective Support and Resistance levels of Nifty are: Resistance 14,413.80 -- Pivot Point 14,316.20 -- Support -- 14,141.30
The Nifty Put Call Ratio (PCR) finally stood at (0.68) for January month contract. The top five scrips with highest PCR on Bajaj Auto (1.18), TCS (1.02), UPL (0.97), Vedanta (0.87) and Havells (0.84).
Among most active underlying, Reliance Industries witnessed an addition of 14,444 units of Open Interest in the January month futures contract followed by Tata Motors witnessed a contraction of 599 units of Open Interest in the January month futures contract, Kotak Mahindra Bank witnessed a contraction of 2,160 units of Open Interest in the January month futures contract, HDFC Bank witnessed an addition of 1,560 units of Open Interest in the January month futures contract and Bharti Airtel witnessed a contraction of 246 units of Open Interest in the January month futures contract (Provisional).
