In highly volatile trading session, Nifty closed Tuesday’s trade in negative terrain with cut of around half a percent. Market made a sluggish start with a private report that surging inflation and slowing growth are raising serious concerns about the future growth prospects of the economy and as a remedial measure the government should resolve supply side hurdles and ensure more stringent governance norms. Soon market turned volatile, with survey report stating that a record level of pessimism has creeped into the CEOs across the world regarding the worldwide economic growth. For the first time, more than half of the CEOs surveyed by global consultancy PwC said they believe the rate of global GDP growth will decline. Pessimism over some heavyweight Q3 corporate results too weighed on the sentiment. Finally, Nifty ended day’s trade on poor note, as sentiments got undermined with International Monetary Fund (IMF) cut its growth estimate for India to 4.8% for 2019. IMF Chief Economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth. It also expects growth to be 5.8% in 2020 and rise to 6.5% in 2021.
Most of the NSE sectoral indices ended in red, except Media and Pharma. The top gainers from the F&O segment Vodafone Idea, Bharti Infratel and Dish TV India. On the other hand, the top losers were Power Finance Corporation, Berger Paints and Tata Steel. 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 2.94% and reached 15.86. The 50 share Nifty was down by 54.70 points or 0.45% to settle at 12,169.85.
Nifty January 2020 futures closed at 12200.10 (LTP) on Tuesday, at a premium of 30.25 points over spot closing of 12169.85, while Nifty February 2020 futures ended at 12242.00 (LTP), at a premium of 72.15 points over spot closing. Nifty January futures saw an addition of 0.49 million (mn) units, taking the total outstanding open interest (OI) to 13.67 mn units. The near month derivatives contract will expire on January 30, 2020 (Provisional).
From the most active contracts, Bharti Airtel January 2020 futures traded at a premium of 1.45 points at 509.80 (LTP) compared with spot closing of 508.35. The numbers of contracts traded were 35,879 (Provisional).
Reliance Industries January 2020 futures traded at a premium of 2.45 points at 1537.45 (LTP) compared with spot closing of 1535.00. The numbers of contracts traded were 23,243 (Provisional).
Kotak Mahindra Bank January 2020 futures traded at a discount of 0.10 points at 1627.25 (LTP) compared with spot closing of 1627.35. The numbers of contracts traded were 22,268 (Provisional).
State Bank of India January 2020 futures traded at a premium of 1.10 points at 315.00 (LTP) compared with spot closing of 313.90. The numbers of contracts traded were 20,132 (Provisional).
RBL Bank January 2020 futures traded at a premium of 1.10 points at 343.20 (LTP) compared with spot closing of 342.10. The numbers of contracts traded were 17,499 (Provisional).
Among, Nifty calls, 12300 SP from the January month expiry was the most active call with an addition of 0.46 million open interests. Among Nifty puts, 12200 from the January month expiry was the most active put with an addition of 0.20 million open interests. The maximum OI outstanding for Calls was at 12500 SP (3.55 mn) and that for Puts was at 12000 SP (3.62 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,212.50 -- Pivot Point 12,187.40 -- Support -- 12,144.75.
The Nifty Put Call Ratio (PCR) finally stood at 1.14 for January month contract. The top five scrips with highest PCR on Bharti Airtel (1.30), Berger Paints India (1.21), Shree Cement (1.20), Escorts (1.20) and DLF (1.12).
Among most active underlying, Reliance Industries witnessed an addition of 0.37 million units of Open Interest in the January month futures contract, followed by State Bank Of India witnessing an addition of 3.40 million units of Open Interest in the January month contract, Bharti Airtel witnessed an addition of 12.95 million units of Open Interest in the January month contract, Kotak Mahindra Bank witnessed an addition of 0.20 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).
