In a volatile trading session NSE gauge -- Nifty50 -- snapped Monday’s trade in negative terrain with cut of over quarter a percent. Market made a positive start, as traders took encouragement with the Reserve Bank of India’s (RBI) data showing that India's services exports rose 5.25% to $17.70 billion in October, while imports remained nearly flat at $10.86 billion. But market soon lost its momentum to trade flat, as traders turned cautious with the government data showing that India’s exports contracted for the fourth month in a row in November, dipping 0.34% to $25.98 billion, mainly on account of poor shipments of petroleum, gems & jewellery and leather products. Imports too declined by 12.71% to $38.11 billion in November, narrowing the trade deficit to $12.12 billion.
However, market recovered partially in late noon trades, as traders took some support with Chief Economic Advisor Krishnamurthy Subramanian’s statement that the government is focusing on increasing consumption to boost economic growth. Highlighting steps taken by government to improve Indian economy, he said that the measures include corporate tax cuts to improve risk-return of companies. But in last leg of trade market again lost its track totally and touched its intraday low, as some anxiety spread among the investors with India’s Wholesale price index (WPI) inflation rose to 0.58% in the month of November 2019 as against 0.16% for the previous month and 4.47% during the corresponding month of the previous year. Finally, Nifty ended the lethargic day of trade near intraday low point.
All the NSE sectoral indices ended in red, except IT, Realty and Financial services. The top gainers from the F&O segment Tata Consultancy Services, Equitas Holdings and Indraprastha Gas. On the other hand, the top losers were Vodafone Idea, Mahindra & Mahindra Financial Services and Dish TV India. In the index option segment, maximum OI continues to be seen in the 11800 - 12,300 calls and 11,800 - 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 1.03% and reached 13.43.The 50 share Nifty was down by 32.75 points or 0.27% to settle at 12,053.95.
Nifty December 2019 futures closed at 12084.90 (LTP) on Monday, at a premium of 30.95 points over spot closing of 12053.95, while Nifty January 2019 futures ended at 12138.55 (LTP), at a premium of 84.60 points over spot closing. Nifty December futures saw a contraction of 0.04 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, Indiabulls Housing Finance December 2019 futures traded at a discount of 1.45 points at 307.65 (LTP) compared with spot closing of 309.10. The numbers of contracts traded were 45,354 (Provisional).
State Bank of India December 2019 futures traded at a discount of 0.45 points at 333.20 (LTP) compared with spot closing of 333.65. The numbers of contracts traded were 11,376 (Provisional).
Tata Consultancy Services December 2019 futures traded at a premium of 2.00 points at 2132.00 (LTP) compared with spot closing of 2130.00. The numbers of contracts traded were 21,793 (Provisional).
Reliance Industries December 2019 futures traded at a premium of 7.00 points at 1578.00 (LTP) compared with spot closing of 1571.00. The numbers of contracts traded were 19,676 (Provisional).
Kotak Mahindra Bank December 2019 futures traded at a premium of 4.40 points at 1712.40 (LTP) compared with spot closing of 1708.00. The numbers of contracts traded were 17,832 (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, 12100 from the December month expiry was the most active put with an addition of 0.11 units open interests. The maximum OI outstanding for Calls was at 12000 SP (2.46 mn) and that for Puts was at 12000 SP (4.23 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,110.30 -- Pivot Point 12,078.30 -- Support --12,021.95.
The Nifty Put Call Ratio (PCR) finally stood at 1.33 for December month contract. The top five scrips with highest PCR on Shree Cement (1.50), Just Dial (1.25), Shriram Transport Finance Company (1.18), Kotak Mahindra Bank (1.10) and Indraprastha Gas (1.03).
Among most active underlying, State Bank of India witnessed an addition of 1.98 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 0.81 million units of Open Interest in the December month contract, Tata Consultancy Services witnessed an addition of 0.59 million units of Open Interest in the December month contract, Kotak Mahindra Bank witnessed an addition of 0.93 million units of Open Interest in the December month contract and ICICI Bank witnessed an addition of 1.21 million units of Open Interest in the December month future contract (Provisional).
