S&P CNX -- Nifty ended the session above one and half a percent higher on Wednesday, as all Nifty sectors ended the day in the green. Market made optimistic start, as traders took support with global rating agency S&P’s statement that the impact of the new coronavirus variant on India's economic outlook would be contained. It expects India's economy to grow 9.5% in FY22 and 7.8% in FY23. Further, market widened its gains. Some support also came after Minister of State for Finance Bhagwat Karad said public sector banks (PSBs) recovered over Rs 4.18 lakh crore in the last three financial years from incidents pertaining to frauds and defaults. Also, the amount related to frauds of Rs 1 lakh and above has declined over the period. He added that the government has taken comprehensive steps to tackle defaults and to effect recovery from defaulters. Index continued gaining momentum till the end, as the Reserve Bank of India’s Monetary Policy Committee kept the benchmark interest rates unchanged to 4 per cent maintained an accommodative stance for the ninth consecutive time. Finally, Nifty finished the day’s trade above 17450 mark.
All the sectoral indices ended in green. The top gainers from the F&O segment were Biocon, Delta Corp and MCX. On the other hand, the top losers were Container Corporation of India, HDFC Life Insurance Company and Whirlpool Of India. 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 6.47% and reached 17.27. The 50 share Nifty up by 293.05 points or 1.71% to settle at 17,469.75.
Nifty December 2021 futures closed at 17511.50 (LTP) on Wednesday, at a premium of 41.75 points over spot closing of 17469.75, while Nifty January 2022 futures ended at 17571.00 (LTP), at a premium of 101.25 points over spot closing. Nifty December futures saw an addition of 929 units, taking the total open interest (Contracts) to 2,32,859 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 1.20 points at 754.75 (LTP) compared with spot closing of 753.55. The numbers of contracts traded were 37,254 (Provisional).
Tata Steel December 2021 futures traded at a premium of 2.25 points at 1177.00 (LTP) compared with spot closing of 1174.75. The numbers of contracts traded were 26,179 (Provisional).
Reliance Industries December 2021 futures traded at a premium of 8.95 points at 2429.90 (LTP) compared with spot closing of 2420.95. The numbers of contracts traded were 21,538 (Provisional).
Maruti Suzuki December 2021 futures traded at a premium of 26.40 points at 7441.95 (LTP) compared with spot closing of 7415.55. The numbers of contracts traded were 17,965 (Provisional).
Infosys December 2021 futures traded at a premium of 4.95 points at 1757.35 (LTP) compared with spot closing of 1752.40. The numbers of contracts traded were 17,833 (Provisional).
Among, Nifty calls, 17500 SP from the December month expiry was the most active call with a contraction of 739 units open interests. Among Nifty puts, 17400 SP from the December month expiry was the most active put with an addition of 4,148 units open interests. The maximum OI outstanding for Calls was at 18000 SP (66,258 units) and that for Puts was at 17000 SP (96,707 units). The respective Support and Resistance levels of Nifty are: Resistance 17,533.25 -- Pivot Point 17,421.10 -- Support -- 17,357.60.
The Nifty Put Call Ratio (PCR) finally stood at (1.39) for December month contract. The top five scrips with highest PCR on Escorts (1.13), LIC Housing Finance (0.92), Bajaj Finserv (0.85), Piramal Enterprises (0.85) and Titan Company (0.84).
Among most active underlying, ICICI Bank witnessed an addition of 1,614 units of Open Interest in the December month futures contract, Tata Motors witnessed an addition of 295 units of Open Interest in the December month futures contract, Axis Bank witnessed a contraction of 921 units of Open Interest in the December month futures contract, Maruti Suzuki witnessed an addition of 2,378 units of Open Interest in the December month futures contract and Bajaj Finance witnessed an addition of 171 units of Open Interest in the December month futures contract (Provisional).
