The fifty stock index -- Nifty -- resumed its southward journey after a two day’s winning streak and finished the lethargic day of trade with the cut of over half a percent. Market started the day on a negative note, as traders were anxious with CRISIL’s report that for states, balancing the fiscal math while continuing to spend on infrastructure capital expenditure (CAPEX) will be challenging. Further, market started drifting lower, as sentiments got undermined with a report that India's economic growth is expected to have declined below 5% in the second quarter of the financial year 2019-20 on the back of weak consumer demand, slowing factory activities and negative impacts of the prolonged monsoon.
However, market continued its inactive trade for the second half of the session, as the street mood remained negative with Chief Economic Adviser Krishnamurthy Subramanian’s statement that the government recognized the need to cut the corporate tax to boost investments. For the last few quarters the cycle of growth has not been as it was earlier. India's economy grew at 5% in the first quarter of 2019-20 the slowest pace in over six years.
Most of the NSE sectoral indices ended in green, except Realty. The top gainers from the F&O segment Bharti Infratel, NBCC (India) and IDFC First Bank. On the other hand, the top losers were Dish TV India, Indiabulls Housing Finance and Zee Entertainment Enterprises. In the index option segment, maximum OI continues to be seen in the 12200 - 12,700 calls and 11,700 - 12,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.64% and reached 13.89.The 50 share Nifty was down by 95.10 points or 0.78% to settle at 12,056.05.
Nifty December 2019 futures closed at 12,092.90 (LTP) on Friday, at a premium of 36.85 points over spot closing of 12,056.05, while Nifty January 2019 futures ended at 12,133.35(LTP), at a premium of 77.30 points over spot closing. Nifty December futures saw an addition of 0.34 million (mn) units, taking the total outstanding open interest (OI) to 14.58 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).
From the most active contracts, Indiabulls Housing Finance December 2019 futures traded at a discount of 4.00 points at 286.00 (LTP) compared with spot closing of 290.00. The numbers of contracts traded were 1, 82,378 (Provisional).
Yes Bank December 2019 futures traded at a discount of 0.75 points at 67.75 (LTP) compared with spot closing of 68.50. The numbers of contracts traded were 1,53,835 (Provisional).
Zee Entertainment Enterprises December 2019 futures traded at a premium of 0.45 points at 286.95 (LTP) compared with spot closing of 286.50. The numbers of contracts traded were 35,147 (Provisional).
Adani Ports and Special Economic Zone December 2019 futures traded at a premium of 2.35 points at 383.35(LTP) compared with spot closing of 381.00. The numbers of contracts traded were 24,418 (Provisional).
HDFC Bank December 2019 futures traded at a premium of 2.25 points at 1277.25 (LTP) compared with spot closing of 1275.00. The numbers of contracts traded were 22,835 (Provisional).
Among, Nifty calls, 12100 SP from the December month expiry was the most active call with an addition of 0.47 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with a contraction of 0.42 units open interests. The maximum OI outstanding for Calls was at 12500 SP (18.23 mn) and that for Puts was at 12000 SP (29.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,129.83 -- Pivot Point 12,073.62 -- Support -- 11,999.83.
The Nifty Put Call Ratio (PCR) finally stood at 1.13 for December month contract. The top five scrips with highest PCR on Tata Motors – DVR (1.51), Just Dial (1.42), MindTree (1.39), Dabur India (1.25) and Bharti Airtel (1.41).
Among most active underlying, Indiabulls Housing Finance witnessed a contraction of 0.63 million units of Open Interest in the December month futures contract, followed by Yes Bank witnessing an addition of 46.21 million units of Open Interest in the December month contract, State Bank of India witnessed an addition of 1.31 million units of Open Interest in the December month contract, Reliance Industries witnessed an addition of 0.99 million units of Open Interest in the December month contract and Adani Ports and Special Economic Zone witnessed an addition of 14.32 million units of Open Interest in the December month future contract (Provisional).
