S&P CNX Nifty scaled new peak on Monday and ended above its crucial 18550 mark. India VIX was up by 1.74%. Market made a negative start, as traders were concerned with member of the Economic Advisory Council to the Prime Minister, Sanjiv Sanyal’s statement that ‘India is capable of generating a 9 per cent growth rate but in view of the geopolitical situation, we should be satisfied with a 6.5-7 per cent economic expansion’. However, soon index wiped out losses and entered into positive territory, as traders got some support after RBI said in the second consecutive week of an increase in the kitty, India’s forex reserves have grown by $2.537 billion to $547.252 billion for the week ended November 18. Traders took note of report that the central banks of India and the UAE are discussing a concept paper on promoting bilateral trade in rupee and dirham with a view to reducing transaction cost. The central banks of both countries will discuss the standard operating procedures and modalities. The objective of the exercise is to reduce the cost of transactions.
Market continued its rally mood to reach at fresh all-time high in afternoon session, as sentiments remained upbeat after credit rating agency, S&P Global Ratings in its latest report has said that the global slowdown will have less impact on domestic demand-led economies such as India, Indonesia and the Philippines. It further said that in some countries the domestic demand recovery from COVID has further to go. This should support growth next year in India, Indonesia, Malaysia, the Philippines, and Thailand. Some additional support came with Agriculture Minister Narendra Singh Tomar’s statement that the government expects good production of agriculture crops in the ongoing rabi (winter-sown) season on the back of higher sowing area and favourable soil moisture condition. But, in last leg of trade, index cut some of its gains as investors booked their profit.
Most of the sectorial indices ended in green except, Financial Services, IT, Media, Metal and Consumer Durables. The top gainers from the F&O segment were Apollo Tyres, Hindustan Petroleum Corporation and Bharat Petroleum Corporation. On the other hand, the top losers were Shriram Transport Finance Company, Honeywell Automation India and Jindal Steel & Power. In the index option segment, maximum OI continues to be seen in the 18900 -19100 calls and 17900 -18100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 1.74% and reached 13.57. The 50 share Nifty up by 50.00 points or 0.27% to settle at 18,562.75.
Nifty December 2022 futures closed at 18690.00 on Monday (LTP), at a premium of 127.25 points over spot closing of 18562.75, while Nifty January 2023 futures ended at 18796.00 (LTP), at a premium of 233.25 points over spot closing. Nifty December futures saw an addition of 16,274 units, taking the total open interest (Contracts) to 2,42,897 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Reliance Industries December 2022 futures traded at a premium of 17.00 points at 2723.00 (LTP) compared with spot closing of 2706.00. The numbers of contracts traded were 27,092. (Provisional)
Adani Enterprises December 2022 futures traded at a premium of 28.55 points at 3913.00 (LTP) compared with spot closing of 3884.45. The numbers of contracts traded were 23,040. (Provisional)
Punjab National Bank December 2022 futures traded at a premium of 0.35 points at 53.70 (LTP) compared with spot closing of 53.35. The numbers of contracts traded were 22,156. (Provisional)
Tata Motors December 2022 futures traded at a premium of 4.15 points at 436.70 (LTP) compared with spot closing of 432.55. The numbers of contracts traded were 18,537. (Provisional)
Infosys December 2022 futures traded at a premium of 14.50 points at 1635.70 (LTP) compared with spot closing of 1621.20. The numbers of contracts traded were 17,348. (Provisional)
Among, Nifty calls, 18600 SP from the December month expiry was the most active call with an addition of 7,110 units open interests. Among Nifty puts, 18500 SP from the December month expiry was the most active put with an addition of 9,848 units open interests. The maximum OI outstanding for Calls was at 19000 SP (74,053 units) and that for Puts was at 18000 SP (77,797 units). The respective Support and Resistance levels of Nifty are: Resistance 18662.80 -- Pivot Point 18514.20 -- Support -- 18414.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for December month contract. The top five scrips with highest PCR on Alkem Laboratories (1.18), IPCA Laboratories (1.10), Canara Bank (1.05), HDFC Life Insurance Company (0.95), and Axis Bank (0.94).
Among most active underlying, Reliance Industries witnessed an addition of 6,121 units of Open Interest in the December month futures, HDFC Bank witnessed an addition of 4,652 units of Open Interest in the December month futures, ICICI Bank witnessed an addition of 1,481 units of Open Interest in the December month futures, Apollo Tyres witnessed an addition of 1,423 units of Open Interest in the December month futures and Axis Bank witnessed an addition of 74 units of Open Interest in the December month futures. (Provisional)
