After ending the previous session at record closing high, Key equity benchmark -- Nifty -- ended the day’s trade in negative territory on Friday with cut of near half a percent. Market made a weak start and continued its sluggish trade throughout the session, as traders were concerned with think-tank Centre for Monitoring Indian Economy (CMIE) stated that India's unemployment rate increased to 7.7% in December, slightly higher than 7.48% reported in the previous month. Traders overlooked a report that India can explore an annual $82-billion export potential in twenty products, including electrical equipment and ferro alloys, in the world's second largest economy China.
In the afternoon trade, market started extending its losses, as traders remain anxious with a private report indicating that India's real GDP growth would weaken further in Q3 of the financial year due to slow economic activity in the first two months of the second half and the GDP for FY20 could be around 4.5%. Finally, Nifty ended the lethargic day of trade below its crucial 12250 mark, traders paid no heed towards private report stated that the Indian economy benefited from 'favourable external environment' in 2019, following which portfolio inflows into equity and debt touched a multi-year high, and if this momentum is sustained it will bode well for the country's external balance.
Most of the the NSE sectoral indices ended in red, except IT and Pharma. The top gainers from the F&O segment GMR Infrastructure, NIIT Technologies and Max Financial Services. On the other hand, the top losers were Zee Entertainment Enterprises, LIC Housing Finance and RBL Bank. In the index option segment, maximum OI continues to be seen in the 12250 -12,700 calls and 11,900 -12,350 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 10.49% and reached 12.69.The 50 share Nifty was down by 55.55 points or 0.45% to settle at 12,226.65.
Nifty January 2020 futures closed at 12259.90 (LTP) on Friday, at a premium of 33.25 points over spot closing of 12226.65, while Nifty February 2020 futures ended at 12300.00 (LTP), at a premium of 73.35 points over spot closing. Nifty December futures saw an addition of 0.26 million (mn) units, taking the total outstanding open interest (OI) to 12.71 mn units. The near month derivatives contract will expire on January 30, 2020 (Provisional).
From the most active contracts, Indiabulls Housing Finance January 2020 futures traded at a discount of 1.10 points at 327.55 (LTP) compared with spot closing of 328.65. The numbers of contracts traded were 34,528 (Provisional).
InterGlobe Aviation January 2020 futures traded at a premium of 7.75 points at 1368.00 (LTP) compared with spot closing of 1360.25. The numbers of contracts traded were 26,284 (Provisional).
Reliance Industries January 2020 futures traded at a premium of 4.50 points at 1540.50 (LTP) compared with spot closing of 1536.00. The numbers of contracts traded were 21,561 (Provisional).
Tata Consultancy Services January 2020 futures traded at a premium of 1.00 points at 2202.00 (LTP) compared with spot closing of 2201.00. The numbers of contracts traded were 20,427 (Provisional).
State Bank of India January 2020 futures traded at a premium of 0.85 points at 334.85 (LTP) compared with spot closing of 334.00. The numbers of contracts traded were 18,798 (Provisional).
Among, Nifty calls, 12300 SP from the January month expiry was the most active call with an addition of 0.24 million open interests. Among Nifty puts, 12200 from the January month expiry was the most active put with an addition of 0.18 units open interests. The maximum OI outstanding for Calls was at 12500 SP (2.41 mn) and that for Puts was at 12000 SP (4.23 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,264.38 -- Pivot Point 12,227.87 -- Support -- 12,190.13.
The Nifty Put Call Ratio (PCR) finally stood at 1.24 for January month contract. The top five scrips with highest PCR on Bajaj Finance (1.13), Shree Cement (1.06), Indian Oil Corporation (1.03), Just Dial (1.01) and UltraTech Cement (1.00).
Among most active underlying, Reliance Industries witnessed a contraction of 0.43 million units of Open Interest in the January month futures contract, followed by State Bank of India witnessing an addition of 1.49 million units of Open Interest in the January month contract, Bajaj Finance witnessed an addition of 0.18 million units of Open Interest in the January month contract, Tata Consultancy Services witnessed an addition of 0.51 million units of Open Interest in the January month contract and Axis Bank witnessed an addition of 0.90 million units of Open Interest in the January month future contract (Provisional).
