Nifty sinks in red; breaches 11,950 mark

Nifty continued its south-bound journey for the second consecutive day and snapped the session below its crucial 11,950 mark on Friday. The barometer made a soft opening with positive bias, as traders took some support with Commerce and Industry Minister Piyush Goyal’s statement the target of Rs 5 lakh crore business through government’s e-marketplace GeM is achievable in less than five years given the huge amount of procurement done via the platform. Market soon erased all its gains and entered into negative zone, as anxiety spread among the investors with Reserve Bank of India’s consumer confidence survey (CCS) which highlighted that a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation.

Index further drifted lower to touch intraday low, as traders’ mood remained down-beat as Federation of Indian Chambers of Commerce and Industry (FICCI) expressed disappointment at the Reserve Bank of India’s (RBI) decision to keep interest rates unchanged and said there is a need for continued action on the policy rate front to boost growth. Finally, Nifty ended the lackadaisical trade with cut of around a percent.

All the NSE sectoral indices ended in red. The top gainers from the F&O segment Bharti Infratel, Century Textiles & Industries and Colgate Palmolive. On the other hand, the top losers were Dish TV India, Yes Bank and RBL Bank. In the index option segment, maximum OI continues to be seen in the 11800   - 12,150 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 4.65% and reached 13.64.The 50 share Nifty was down by 96.90 points or 0.81% to settle at 11,921.50.

Nifty December 2019 futures closed at 11949.50 (LTP) on Friday, at a premium of 28.00 points over spot closing of 11921.50, while Nifty January 2019 futures ended at 11995.00 (LTP), at a premium of 73.50 points over spot closing. Nifty December futures saw an addition of 0.84 million (mn) units, taking the total outstanding open interest (OI) to 14.00 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).

From the most active contracts, State Bank of India December 2019 futures traded at a premium of 1.30 points at 319.50 (LTP) compared with spot closing of 318.20. The numbers of contracts traded were 46,860 (Provisional).

Indiabulls Housing Finance December 2019 futures traded at a discount of 0.20 points at 273.30 (LTP) compared with spot closing of 273.50. The numbers of contracts traded were 38,118 (Provisional).

RBL Bank December 2019 futures traded at a discount of 2.45 points at 335.55 (LTP) compared with spot closing of 338.00. The numbers of contracts traded were 27,683 (Provisional).

ICICI Bank December 2019 futures traded at a premium of 1.55 points at 526.80 (LTP) compared with spot closing of 525.25. The numbers of contracts traded were 26,711 (Provisional).

Yes Bank December 2019 futures traded at a discount of 2.40 points at 53.20 (LTP) compared with spot closing of 55.60. The numbers of contracts traded were 23,366 (Provisional).

Among, Nifty calls, 12100 SP from the December month expiry was the most active call with an addition of 0.35 million open interests. Among Nifty puts, 12000 from the December month expiry was the most active put with an addition of 0.005 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.22 mn) and that for Puts was at 12000 SP (3.27 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,022.75 -- Pivot Point 11,955.80 -- Support -- 11,854.55

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for December month contract. The top five scrips with highest PCR on Shree Cement (1.50), Shriram Transport Finance Company (1.21), Just Dial (1.20), Tata Consultancy Services (1.10) and Bajaj Finance (0.88).

Among most active underlying, State Bank of India witnessed an addition of 7.23 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 0.20 million units of Open Interest in the December month contract, ICICI Bank witnessed a contraction of 2.74 million units of Open Interest in the December month contract, Kotak Mahindra Bank witnessed an addition of 0.43 million units of Open Interest in the December month contract and Axis Bank witnessed a contraction of 0.11 million units of Open Interest in the December month future contract (Provisional).