Rising for the third straight session, key equity benchmark -- Nifty -- ended the day’s trade above its crucial 14750 mark on Wednesday. Market made cautious start, but soon gained momentum, as traders took support with Trade Promotion Council of India's (TPCI's) Founder Chairman Mohit Singla’s statement that the country's exports, which have recorded a growth of 5.4 percent in January, reflects the trade has been on the path of quick recovery. He said the exports have also recorded positive growth in December 2020 and it is a reflection that Indian products have been sustaining its global demand despite challenges. Further, market extended its gains with NITI Aayog Vice-Chairman Rajiv Kumar’s statement that the reform measures announced in the budget 2021-22 are aimed at taking India out of the COVID-19-induced downturn and making the country a better destination for private investment, both for domestic and foreign investors. Index maintained its healthy gains till the end of the session, as growth of India’s service sector extended into the new year, with growth of new work and business activity quickening since December. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index surged to 52.8 in January from 52.3 in December. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also jumped to 55.8 in January from 54.9 in December.
Most of the sectoral indices ended in green except FMGC and Realty. The top gainers from the F&O segment were Shriram Transport Finance Company, Indusind Bank and M&M Fin. On the other hand, the top losers were PVR, Ambuja Cement and Bharat Forge. In the index option segment, maximum OI continues to be seen in the 14100 - 15,500 calls and 13,700 - 14,500 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.71% and reached 23.75. The 50 share Nifty up by 142.10 points or 0.97% to settle at 14,789.95.
Nifty February 2021 futures closed at 14814.00 (LTP) on Wednesday, at a premium of 24.05 points over spot closing of 14789.95, while Nifty March 2021 futures ended at 14856.00 (LTP), at a premium of 66.05 points over spot closing. Nifty February futures saw an addition of 8,440 units, taking the total open interest (Contracts) to 1,37,360 units. The near month derivatives contract will expire on February 25, 2021 (Provisional).
From the most active contracts, Reliance Industries February 2021 futures traded at a premium of 3.15 points at 1931.65 (LTP) compared with spot closing of 1928.50. The numbers of contracts traded were 55,034 (Provisional).
Tata Motors February 2021 futures traded at a premium of 0.75 points at 331.95 (LTP) compared with spot closing of 331.20. The numbers of contracts traded were 37,449 (Provisional).
SBIN February 2021 futures traded at a premium of 1.60 points at 337.35 (LTP) compared with spot closing of 335.75. The numbers of contracts traded were 32,857 (Provisional).
Indusind Bank February 2021 futures traded at a premium of 6.45 points at 1053.25 (LTP) compared with spot closing of 1046.80. The numbers of contracts traded were 30,883 (Provisional).
Bharti Airtel February 2021 futures traded at a premium of 2.00 points at 613.90 (LTP) compared with spot closing of 611.90. The numbers of contracts traded were 27,799 (Provisional).
Among, Nifty calls, 15000 SP from the February month expiry was the most active call with a contraction of 1,391 units open interests. Among Nifty puts, 14000 SP from the February month expiry was the most active put with an addition of 4,871 units open interests. The maximum OI outstanding for Calls was at 15000 SP (18,688 units) and that for Puts was at 14000 SP (44,396 units). The respective Support and Resistance levels of Nifty are: Resistance 14,914.48 -- Pivot Point 14,744.32 -- Support -- 14,619.78
The Nifty Put Call Ratio (PCR) finally stood at (1.61) for February month contract. The top five scrips with highest PCR on Vedanta (1.38), Shriram Transport Finance Company (1.37), ICICI Bank (1.23), HDFC Bank (1.13) and Indusind Bank (1.06).
Among most active underlying, Tata Motors witnessed an addition of 536 units of Open Interest in the February month futures contract followed by SBIN witnessed an addition of 1,979 units of Open Interest in the February month futures contract, Bharti Airtel witnessed an addition of 1,536 units of Open Interest in the February month futures contract, Indusind Bank an addition of 2,896 units of Open Interest in the February month futures contract and Reliance Industries witnessed an addition of 3,001 units of Open Interest in the February month futures contract (Provisional).
