Nifty slumped below the crucial support level of 11900 and snapped Tuesday’s trade with cut of over half a percent. Market started the day on a cautious note and turned into negative within few moments of trade, as investors got wary with global rating agency, Fitch Ratings stating that India's non-banking financial companies will look increasingly to offshore financing as local funding conditions may remain under pressure. The rating agency expects offshore access to be restricted to larger entities with stronger credit fundamentals.
Market traded on lower note, as traders remained careful with report that the Central GST collection fell short of the budged estimate by nearly 40 per cent during the April-November period of 2019-20. Selling pressure accentuated in the last leg of trade, with a private report indicating that India is expected to witness a marginal 7 per cent rise in job creation in the October-March period of this financial year, as subdued economic conditions have dampened employment outlook.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment Indiabulls Housing Finance, Vodafone Idea and Bajaj Finance. On the other hand, the top losers were Yes Bank, NBCC (India) and Apollo Tyres. In the index option segment, maximum OI continues to be seen in the 11800 -12,300 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 2.11% and reached 14.29.The 50 share Nifty was down by 80.70 points or 0.68% to settle at 11,856.80.
Nifty December 2019 futures closed at 11902.00 (LTP) on Tuesday, at a premium of 45.20 points over spot closing of 11856.80, while Nifty January 2019 futures ended at 11949.00 (LTP), at a premium of 92.20 points over spot closing. Nifty December futures saw an addition of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 0.56 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 0.60 points at 269.70 (LTP) compared with spot closing of 270.30. The numbers of contracts traded were 49,045 (Provisional).
State Bank of India December 2019 futures traded at a premium of 1.30 points at 314.50 (LTP) compared with spot closing of 313.20. The numbers of contracts traded were 48,151 (Provisional).
Yes Bank December 2019 futures traded at a discount of 3.60 points at 46.80 (LTP) compared with spot closing of 50.40. The numbers of contracts traded were 33,037 (Provisional).
ICICI Bank December 2019 futures traded at a premium of 1.70 points at 531.45 (LTP) compared with spot closing of 529.75. The numbers of contracts traded were 20,598 (Provisional).
RBL Bank December 2019 futures traded at a discount of 0.90 points at 321.10 (LTP) compared with spot closing of 322.00. The numbers of contracts traded were 19,592 (Provisional).
Among, Nifty calls, 12000 SP from the December month expiry was the most active call with an addition of 0.44 million open interests. Among Nifty puts, 11900 from the December month expiry was the most active put with an addition of 0.17 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.77 mn) and that for Puts was at 12000 SP (3.12 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,925.10 -- Pivot Point 11,884.90 -- Support -- 11,816.60.
The Nifty Put Call Ratio (PCR) finally stood at 1.15 for December month contract. The top five scrips with highest PCR on Shree Cement (1.50), Shriram Transport Finance Company (1.31), Just Dial (1.13), Bharti Airtel (0.93) and Bajaj Finance (0.92).
Among most active underlying, State Bank of India witnessed an addition of 2.68 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 0.89 million units of Open Interest in the December month contract, Tata Consultancy Services witnessed an addition of 1.27 million units of Open Interest in the December month contract, ICICI Bank witnessed an addition of 2.49 million units of Open Interest in the December month contract and Axis Bank witnessed an addition of 1.16 million units of Open Interest in the December month future contract (Provisional).
