Nifty hit a century; India VIX slipped below 13 mark!

On the options front, for the day unwinding was seen across the strike price between 18,500-18,600 Call options

Market update at 3:30 PM: Indian benchmark indices extended their gains as the day progressed. With this the Sensex and Nifty reclaimed their important psychological mark of 62,500 and 18,600, respectively. Interestingly, India VIX dipped nearly 3 per cent and it has now slipped below the 13 mark.    

Talking about sectoral performance, majority of the sectors ended the day with gains led by Nifty PSU Bank and Nifty IT. On other hand, Nifty Realty, FMCG and Media ended in red.   

Keeping up the pace with frontline indices, the broader markets ended the day with gains as Nifty Midcap and Small-Cap ended up by 0.54 and 0.43 per cent, respectively.   

On the options front, for the day unwinding was seen across the strike price between 18,500-18,600 Call options. Meanwhile, fresh built-up was seen in the 18,500-18,600 Put option strike price. 

Market update at 11:25: India key benchmark indices were seen trading near day’s high as Nifty and Sensex have added nearly half a per cent on Tuesday.   

The broader market indices are also witnessing buying interest with Nifty Midcap and Small-Cap index adding 0.28 per cent. The advance-decline ratio is firmly in favor of advances.   

Talking about the sectoral performance, Nifty PSU Bank was the top gainer and interestingly, Nifty IT has turned the tables as it is the second-best performing  sector of the day. On other hand, Nifty Realty and FMCG are witnessing profit booking.   

On the options front, Nifty Call options open interest distribution shows that 18,600 has highest open interest concentration and, on the Nifty, Put options open interest distribution shows that 18,500 has highest open interest concentration. So, the range of 18,500-18,600 is crucial for the day.

Pre-Market: Early indication from the SGX Nifty indicates that the India benchmark are likely to open the trading session on a firm footing, following strong cues from the US markets, which saw their indices closing at their best levels of the day. SGX Nifty is trading up by 41 points at the level of 18,639.  

US stocks moved regained ground on Monday following steep drop seen last week, the positive sentiment was generated in reaction to a survey from the New York Reserve showing inflation expectations decreased at the short, medium and long terms in November.  

Talking about inflation on the domestic front, market participants would heave a sigh of relief as India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to a 11-month low of 5.88 per cent in November and the number has dropped within RBI’s tolerance band of 2-6 per cent after 10 months. On other hand, some disappointment would be there on the back of IIP numbers. The factory output, measured in terms of the Index of Industrial Production (IIP), contracted 4 per cent in October.  

In the near term the level of 18,300 is a strong support for the Nifty and on the upside the first hurdle for the Nifty is seen around the level of 18,560 levels. Sustaining above this level would given an upper hand to the bulls, however, we expect the market to trade within the above-mentioned range ahead of the US Inflation data.