Nifty ends below 12,050 on profit booking

Nifty finished the choppy day of trade with losses on Monday amid positive global cues. Market started the session on positive note with report that festive season demand helped the government collect Rs 1.03 lakh crore in goods and services tax (GST) in the month of November, up 6% over the same month last year. During the month of November, the GST collection on domestic transactions witnessed a growth of 12%, highest during the year. However, index lost all its traction and struggled to keep its head above water, as sentiments turned pessimistic with a report which showed that the growth of eight major industries which contracted by 5.2% in September, further fell by 5.8% in October due to a steep decline in the cement, electricity, and other major sectors.

Local market carried its weak trade, as anxiety remained among the investors with a private report stating that India's economic growth is expected to remain subdued in near future as the slowdown has deepened and is likely to remain extended for a longer duration than previously anticipated. Finally, Nifty ended the sluggish day of trade below its crucial levels of 12050 mark, as traders failed to get relief with Finance minister Nirmala Sitharaman’s statement that several significant steps in structural reforms have been taken in the past few months and responses/interventions addressing the needs of the economy will continue, indicating more relief measures could be on the anvil if so needed.

Most of the NSE sectoral indices ended in red, except Metal. The top gainers from the F&O segment Vodafone Idea, Bharti Airtel and Indiabulls Housing Finance. On the other hand, the top losers were Yes Bank, Eicher Motors and Just Dial. 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 increased by 2.19% and reached 14.20.The 50 share Nifty was down by 7.85 points or 0.07% to settle at 12,048.20.

Nifty December 2019 futures closed at 12091.00 (LTP) on Monday, at a premium of 42.80 points over spot closing of 12048.20, while Nifty January 2019 futures ended at 12140.95 (LTP), at a premium of 92.75 points over spot closing. Nifty December futures saw an addition of 0.30 million (mn) units, taking the total outstanding open interest (OI) to 14.02 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).

From the most active contracts, Yes Bank December 2019 futures traded at a discount of 1.85 points at 61.95 (LTP) compared with spot closing of 63.80. The numbers of contracts traded were 1,33,526 (Provisional).

Indiabulls Housing Finance December 2019 futures traded at a discount of 0.20 points at 302.15 (LTP) compared with spot closing of 302.35. The numbers of contracts traded were 94,497 (Provisional).

Reliance Industries December 2019 futures traded at a premium of 8.60 points at 1595.50 (LTP) compared with spot closing of 1586.90. The numbers of contracts traded were 37,806 (Provisional).

Bharti Airtel December 2019 futures traded at a premium of 2.35 points at 463.05 (LTP) compared with spot closing of 460.70. The numbers of contracts traded were 32,817 (Provisional).

Vodafone Idea December 2019 futures traded flat 7.80 (LTP) with spot closing of 7.80. The numbers of contracts traded were 30,568 (Provisional).

Among, Nifty calls, 12100 SP from the December month expiry was the most active call with an addition of 0.17 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with a contraction of 0.29 units open interests. The maximum OI outstanding for Calls was at 12500 SP (18.86 mn) and that for Puts was at 12000 SP (31.76 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,115.67 -- Pivot Point 12,069.68 -- Support -- 12,002.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.14 for December month contract. The top five scrips with highest PCR on Just Dial (1.31), Tata Motors – DVR (1.15), Shriram Transport Finance Company (1.08), Bharti Airtel (1.07) and UltraTech Cement (1.02).

Among most active underlying, Reliance Industries witnessed an addition of 2.33 million units of Open Interest in the December month futures contract, followed by Bharti Airtel witnessing an addition of 3.96 million units of Open Interest in the December month contract, State Bank of India witnessed an addition of 4.41 million units of Open Interest in the December month contract, Yes Bank witnessed an addition of 55.58 million units of Open Interest in the December month contract and Indiabulls Housing Finance witnessed an addition of 7.86 million units of Open Interest in the December month future contract (Provisional).