Snapping four days losing streak, Indian equity benchmark -- Nifty -- ended in positive terrain on Monday as trader put aside fears around the Covid-19 situation in China and some other parts of the world. Market made a positive start as traders opted to buy beaten down but fundamentally strong stocks. Trader got support with report stating that foreign investors have infused a net Rs 11,557 crore in Indian equities in December. Market extended its gains, as traders ignored report that the Reserve Bank of India’s (RBI’s) foreign exchange reserves declined for the first time in five weeks to $563.50 billion in the week ended December 16.
Market continued its gaining momentum and touched day’s highest point in late afternoon session, as trader took note of Indian rupee appreciating 11 paise to 82.71 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Besides, another private report stated that India's growth trajectory will see the country rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037.
Most of the sectorial indices ended in green except Pharma and Healthcare Index. The top gainers from the F&O segment were Punjab National Bank, Indiabulls Housing Finance and Federal Bank. On the other hand, the top losers were Divi's Laboratories, Cipla and Dr. Lal PathLabs. In the index option segment, maximum OI continues to be seen in the 18100 -18300 calls and 16900 -17100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.40% and reached 15.93. The 50 share Nifty up by 207.80 points or 1.17% to settle at 18,014.60.
Nifty December 2022 futures closed at 18018.10 (LTP) on Monday, at a premium of 3.50 points over spot closing of 18014.60, while Nifty January 2023 futures ended at 18128.00 (LTP), at a premium of 113.40 points over spot closing. Nifty December futures saw a contraction of 17,925 units, taking the total open interest (Contracts) to 1,79,068 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, HDFC Bank December 2022 futures traded at a discount of 2.05 points at 1626.90 (LTP) compared with spot closing of 1628.95. The numbers of contracts traded were 44,255. (Provisional)
Reliance Industries December 2022 futures traded at a premium of 0.20 points at 2525.20 (LTP) compared with spot closing of 2525.00. The numbers of contracts traded were 34,603. (Provisional)
Kotak Mahindra Bank December 2022 futures traded at a premium of 2.95 points at 1813.80 (LTP) compared with spot closing of 1810.85. The numbers of contracts traded were 30,394. (Provisional)
Adani Ports and Special Economic Zone December 2022 futures traded at a discount of 0.25 points at 805.70 (LTP) compared with spot closing of 805.95. The numbers of contracts traded were 26,084. (Provisional)
Indusind Bank December 2022 futures traded at a premium of 2.40 points at 1196.40 (LTP) compared with spot closing of 1194.00. The numbers of contracts traded were 25,045. (Provisional)
Among, Nifty calls, 18100 SP from the December month expiry was the most active call with a contraction of 35,817 units open interests. Among Nifty puts, 18000 SP from the December month expiry was the most active put with an addition of 61,916 units open interests. The maximum OI outstanding for Calls was at 18200 SP (1,81,167 units) and that for Puts was at 17000 SP (1,48,760 units). The respective Support and Resistance levels of Nifty are: Resistance 18141.05 -- Pivot Point 17957.65 -- Support -- 17831.20.
The Nifty Put Call Ratio (PCR) finally stood at (0.86) for December month contract. The top five scrips with highest PCR on JSW Steel (0.92), Max Financial Services (0.90), Apollo Tyres (0.86), Power Finance Corporation (0.84) and Aditya Birla Capital (0.82).
Among most active underlying, HDFC Bank witnessed a contraction of 11,335 units of Open Interest in the December month futures, ICICI Bank witnessed a contraction of 1,653 units of Open Interest in the December month futures, Kotak Mahindra Bank witnessed a contraction of 5,939 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 3,686 units of Open Interest in the December month futures and State Bank of India witnessed a contraction of 2,568 units of Open Interest in the December month futures. (Provisional)
