Benchmarks trade sideways; India VIX slips 2%

Barometers continued to trade in a narrow band near the day's high in early afternoon trade. Mixed Asian stocks had little impact on domestic market. The Nifty traded above its 20 days simple moving average placed at 12,215.92. Buying was seen across the board. At 12:25 IST, the S&P BSE Sensex, gained 127.18 points or 0.31% at 41,513.58. The Nifty 50 index was up 45.6 points or 0.37% at 12,225.95.

In the broader market, the S&P BSE Mid-Cap index gained 0.82% while the S&P BSE Small-Cap index was up 0.51%.

The market breadth was positive. On the BSE, 1325 shares rose and 887 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.

 

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.01% to 15.535. The Nifty January 2020 futures were trading at 12,245, a premium of 20.15 points compared with the spot at 12,224.85.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 37.71 lakh contracts at the 12,300 strike price. Maximum call writing was witnessed at 12,250 strike price, which added 5.01 lakh contracts.

Maximum put OI of 45.60 lakh contracts was seen at 12,000 strike price. Maximum put writing was observed at 12,200 strike which added 13.13 lakh contracts.

The option chain indicates that the Nifty will hover between 12,000 and 12,300 level in January.

Stocks in Spotlight:

Shares of Olectra Greentech rose 2.64% to Rs 182.4. The company said its arm Evey Trans received Letters of Award for deployment of 555 Electric Buses from 8 Cities/ State transport Authorities under FAME-II scheme of Government of India. These orders are on Gross Cost Contract (GCC) / OPEX model basis for a period in the range of 10-12 years (Contract Period).

Info Edge (India) rose 1.15%. Info Edge (India) informed that the company has set up an alternative investment fund named Info Edge Venture Fund (IEVF), to invest in tech and tech-enabled entities that provide technology to create, market and distribute innovative products and services that benefit consumers at large. Further, the company has entered into a contribution agreement to invest about Rs 100 crore in IE Venture Fund I.

Strides Pharma Science rose 1.64% after the company announced that its step‐down wholly owned subsidiary, Strides Pharma Global Pte, Singapore, has received a tentative approval for Triamcinolone Acetonide Ointment USP, 0.05% from the United States Food & Drug Administration (USFDA). According to IQVIA MAT data, the US market for Triamcinolone Acetonide Ointment USP, 0.05% is approximately US$ 20 Mn. The product will be manufactured at the company's Oral dosage facility at Bangalore and will be marketed by Strides Pharma Inc. in the US market.

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