Indices continue to trade sideways; VIX cools 4%

Key barometers continued to trade sideways with decent gains in early afternoon trade. The Nifty traded above 12,150 level. At 12:18 IST, the S&P BSE Sensex, surged 327.39 points or 0.8% at 41,261.86. The Nifty 50 index jumped 101.4 points or 0.84% at 12,157.20.

Positive cues from other Asian shares boosted sentiment, but caution prevailed ahead of Union Budget on Saturday, 1 February 2020.

The broader market was in line with benchmark index. The S&P BSE Mid-Cap index was up 0.91% while the S&P BSE Small-Cap index underperformed and traded 0.39% higher.

The market breadth was positive. On the BSE, 1341 shares rose and 857 shares fell. A total of 142 shares were unchanged. In Nifty 50 index, 43 stocks advanced while 7 stocks declined.

 

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 4.32% to 16.55. The Nifty January 2020 futures were trading at 12,158.65, a premium of 3.2 points compared with the spot at 12,155.45.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 55.17 lakh contracts at the 12,200 strike price. Maximum call writing was witnessed at 12,250 strike price, which added 3.39 lakh contracts. Massive call unwinding was seen at 12,500 strike price which shed 7 lakh contracts.

Maximum put OI of 43.60 lakh contracts was seen at 12,100 strike price. Massive put writing was observed at 12,100 strike which added 24.82 lakh contracts.

The option chain indicates that the Nifty will hover between 12,100 and 12,200 level in January.

Stocks in Spotlight:

Shares of Alembic Pharmaceuticals were trading 0.53% higher at Rs 635.05. The drug maker received final approval from the USFDA for its Abbreviated New Drug Applications (ANDAs) Azithromycin Tablets USP, 250 mg and 500 mg. The approved ANDAs are therapeutically equivalent to Zithromax Tablets, 250 mg and 500 mg, of Pfizer, Inc. (Pfizer). Azithromycin Tablet is a macrolide antibacterial drug indicated for mild to moderate infections caused by designated, susceptible bacteria in acute bacterial exacerbations of chronic bronchitis in adult.

VA Tech WABAG gained 2.45% after the company announced secured multiple orders worth over Rs 760 crore in India, Switzerland and Singapore.

Shares of NHPC were trading 0.91% lower at Rs 27.1. The company's board will meet on 7 February 2020 for considering the proposal of interim dividend on equity share.

Powered by Capital Market - Live News