NSE gauge -- Nifty50 -- witnessed considerable losses on Wednesday, sliding below its crucial 14,000 levels during the day. Key index begun day on a somber note, as UN has said that India's economy is projected to grow at 7.3 per cent in 2021, even as it is estimated to contract by 9.6 per cent in 2020 as lockdowns and other efforts to control the COVID-19 pandemic slashed domestic consumption. The World Economic Situation and Prospects 2021, produced by the United Nations Department of Economic and Social Affairs (UN DESA), said the world economy was hit by a once-in-a-century crisis - a Great Disruption unleashed by the COVID-19 pandemic in 2020. Further, it extended losses, as the latest round of FICCI's Economic Outlook Survey stated that India's gross domestic product (GDP) is expected to contract by 8 per cent in current financial year (FY21). The annual median growth forecast by the industry body is based on responses from leading economists representing industry, banking and financial services sector. In last leg of trade, market touched intraday low point, with Reserve Bank data showing that overseas investment by domestic firms fell by over 42 per cent to $1.45 billion in December 2020. In the year-ago period, companies in India had invested $2.51 billion in their foreign firms (joint ventures / wholly-owned units).
Most of the sectoral indices ended in red except FMGC. The top gainers from the F&O segment were UBL, National Aluminium Company and Dr. Lal PathLabs. On the other hand, the top losers were Info Edge (India), LIC Housing Finance and Aurobindo Pharma. In the index option segment, maximum OI continues to be seen in the 14100 - 15,500 calls and 12,900 - 13,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.93% and reached 24.39. The 50 share Nifty down by 271.40 points or 1.91% to settle at 13,967.50.
Nifty January 2021 futures closed at 13981.10 (LTP) on Wednesday, at a premium of 13.60 points over spot closing of 13967.50, while Nifty February 2021 futures ended at 14021.60 (LTP), at a premium of 54.10 points over spot closing. Nifty January futures saw a contraction of 2,808 units, taking the total open interest (OI) to 1,24,514 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 discount of 0.15 points at 1889.85 (LTP) compared with spot closing of 1890.00. The numbers of contracts traded were 73,629 (Provisional).
ICICI Bank January 2021 futures traded at a premium of 1.70 points at 524.45 (LTP) compared with spot closing of 522.75. The numbers of contracts traded were 35,008 (Provisional).
Infosys January 2021 futures traded at a premium of 5.70 points at 1306.20 (LTP) compared with spot closing of 1300.50. The numbers of contracts traded were 33,298 (Provisional).
Kotak Mahindra Bank January 2021 futures traded flat with compared spot closing of 1767.00. The numbers of contracts traded were 33,263 (Provisional).
HDFC Bank January 2021 futures traded at a premium of 3.95 points at 1415.20 (LTP) compared with spot closing of 1411.25. The numbers of contracts traded were 32,412 (Provisional).
Among, Nifty calls, 14200 SP from the January month expiry was the most active call with an addition of 36,216 units open interests. Among Nifty puts, 13900 SP from the January month expiry was the most active put with an addition of 10,813 units open interests. The maximum OI outstanding for Calls was at 15000 SP (55,388 units) and that for Puts was at 13500 SP (42,052 units). The respective Support and Resistance levels of Nifty are: Resistance 14,160.53 -- Pivot Point 14,044.92 -- Support -- 13,851.88.
The Nifty Put Call Ratio (PCR) finally stood at (0.60) for January month contract. The top five scrips with highest PCR on Bajaj Auto (1.26), TCS (1.05), UPL (0.97), Havells (0.86) and Aurobindo Pharma (0.86).
Among most active underlying, Reliance Industries witnessed an addition of 3,219 units of Open Interest in the January month futures contract followed by Tata Motors witnessed a contraction of 749 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 5,111 units of Open Interest in the January month futures contract, ICICI Bank witnessed an addition of 7,377 units of Open Interest in the January month futures contract and HDFC Bank witnessed an addition of 2,103 units of Open Interest in the January month futures contract (Provisional).
