The local benchmark -- Nifty gave powerful performance on Tuesday, led by gains in banking, metal and financial services stocks. Market finished the session the gains of above one and half a percent. Market made optimistic start with a report that Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-Covid levels. Further, market extended its gains, as new research from the US India Strategic Partnership Forum (USISPF) and digital currency exchange CrossTower has said web 3.0, the idea that the next iteration of the Internet which will be built on concepts of decentralisation, openness, and greater user utility, can help India contribute an additional $1.1 trillion of economic growth to its GDP over the next 11 years.
In late afternoon session, market continued the gaining momentum to trade at day’s high point, as the government said it is taking all steps to strengthen the National Company Law Tribunal (NCLT) to reduce delays in disposal of cases under the insolvency law. Besides, India underlined its commitment to enhanced trade and investment in the Russian Far-East with the two countries identifying sectors such as energy, maritime connectivity, healthcare and tourism as areas of further cooperation in that region. Finally, Nifty ended the session above 17100 mark.
All the sectoral indices ended in green. The top gainers from the F&O segment were National Aluminium Company, Delta Corp and Torrent Power. On the other hand, the top losers were STAR, Metropolis Healthcare and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 19900 -17150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 8.05% and reached 18.46. The 50 share Nifty up by 264.45 points or 1.56% to settle at 17,176.70.
Nifty December 2021 futures closed at 17223.00 (LTP) on Tuesday, at a premium of 46.30 points over spot closing of 17176.70, while Nifty January 2022 futures ended at 17276.00 (LTP), at a premium of 99.30 points over spot closing. Nifty December futures saw an addition of 8,000 units, taking the total outstanding open interest (OI) to 2,39,930 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).
From the most active contracts, ICICI Bank December 2021 futures traded at a premium of 3.85 points at 738.00 (LTP) compared with spot closing of 734.15. The numbers of contracts traded were 42,368 (Provisional).
Tata Steel December 2021 futures traded at a premium of 5.95 points at 1158.80 (LTP) compared with spot closing of 1152.85. The numbers of contracts traded were 34,934 (Provisional).
Reliance Industries December 2021 futures traded at a premium of 10.70 points at 2392.70 (LTP) compared with spot closing of 2382.00. The numbers of contracts traded were 22,337 (Provisional).
Hindalco Industries December 2021 futures traded at a premium of 0.65 points at 443.70 (LTP) compared with spot closing of 443.05. The numbers of contracts traded were 17,716 (Provisional).
Kotak Mahindra Bank December 2021 futures traded at a premium of 9.45 points at 1943.95 (LTP) compared with spot closing of 1934.50. The numbers of contracts traded were 17,698 (Provisional).
Among, Nifty calls, 17300 SP from the December month expiry was the most active call with a contraction of 1,971 units open interests. Among Nifty puts, 17200 SP from the December month expiry was the most active put with an addition of 6,958 units open interests. The maximum OI outstanding for Calls was at 18000 SP (68,870 units) and that for Puts was at 17000 SP (68,870 units). The respective Support and Resistance levels of Nifty are: Resistance 17,289.65 -- Pivot Point 17,138.70 -- Support -- 17,025.75.
The Nifty Put Call Ratio (PCR) finally stood at (1.32) for December month contract. The top five scrips with highest PCR on Escorts (1.24), LIC Housing Finance (0.89), Titan Company (0.83), Eicher Motors (0.83) and JSW Steel (0.80).
Among most active underlying, ICICI Bank witnessed an addition of 6,174 units of Open Interest in the December month futures contract, Tata Steel witnessed an addition of 656 units of Open Interest in the December month futures contract, Tata Motors witnessed an addition of 230 units of Open Interest in the December month futures contract, Kotak Mahindra Bank witnessed an addition of 705 units of Open Interest in the December month futures contract and Reliance Industries witnessed an addition of 459 units of Open Interest in the December month futures contract (Provisional).
