Nifty witnesses drastic fall

Heavy selling pressure in the last leg of trade dragged Nifty below its crucial 13350 mark and ended the session with the cut of above three percent. Earlier, market made cautious start, as the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1154896 new jobs in the month of October 2020 as against revised figure of 1419161 in September 2020. Further, market trade near neutral line in red zone even after Union Minister Anurag Singh Thakur stated that India has the potential to achieve double-digit growth through a healthy dose of digital services and manufacturing base expansion which will be driven by demand from the rural sector, youth and the aspirational middle class. In late afternoon session, selling got intensified to dragged the market deep in red. Traders failed to took support with reports that foreign portfolio investors (FPI) pumped in Rs 54,980 crore in Indian markets in December so far amidst availability of excess liquidity in global markets and expectation of fresh stimulus package by various central banks, among others.

All the sectoral indices ended in red.The top gainers from the F&O segment were Indus Tower, Infosys and Dabur India. On the other hand, the top losers were NALCO, Canara Bank and Vedanta. In the index option segment, maximum OI continues to be seen in the 13500 - 14,700 calls and 12,900 - 13,500 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 24.52% and reached 23.19. The 50 share Nifty down by 432.15 points or 3.14% to settle at 13,328.40.

Nifty December 2020 futures closed at 13291.25 (LTP) on Monday, at a discount of 37.15 points over spot closing of 13328.40, while Nifty January 2021 futures ended at 13335.00 (LTP), at a premium of 6.60 points over spot closing. Nifty December futures saw a contraction of 5,881 units, taking the total open interest (Contracts) to 1,65,832 units. The near month derivatives contract will expire on December 31, 2020 (Provisional).

From the most active contracts, Reliance Industries December 2020 futures traded at a discount of 2.25 points at 1932.70 (LTP) compared with spot closing of 1934.95. The numbers of contracts traded were 60,549 (Provisional).

L&T December 2020 futures traded at a premium of 3.90 points at 1235.20 (LTP) compared with spot closing of 1231.30. The numbers of contracts traded were 43,313 (Provisional).

ICICI Bank December 2020 futures traded at a premium of 0.95 points at 493.90 (LTP) compared with spot closing of 492.95. The numbers of contracts traded were 32,118 (Provisional).

SBIN December 2020 futures traded at a discount of 0.10 points at 253.90 (LTP) compared with spot closing of 254.00. The numbers of contracts traded were 28,884 (Provisional).

HDFC Bank December 2020 futures traded at a premium of 4.25 points at 1373.25 (LTP) compared with spot closing of 1369.00. The numbers of contracts traded were 28,550 (Provisional).

Among, Nifty calls, 14000 SP from the December month expiry was the most active call with an addition of 2,665 units open interests. Among Nifty puts, 13000 SP from the December month expiry was the most active put with a contraction of 3,050 units open interests. The maximum OI outstanding for Calls was at 14000 SP (30,633 units) and that for Puts was at 13000 SP (54,036 units). The respective Support and Resistance levels of Nifty are: Resistance 13,693.45 -- Pivot Point 13,412.45 -- Support -- 13,047.40.

The Nifty Put Call Ratio (PCR) finally stood at (1.60) for December month contract. The top five scrips with highest PCR on Asian Paints (1.52), Kotak Mahindra Bank (1.03), Titan Company (0.99), Tata steel (0.93) and Bajaj Finance (0.90).

Among most active underlying, Reliance Industries witnessed an addition of 96 units of Open Interest in the December month futures contract, L&T witnessed an addition of 2,919 units of Open Interest in the December month futures contract, Bajaj Finance witnessed a contraction of 436 units of Open Interest in the December month futures contract, SBIN witnessed an addition of 1,824 units of Open Interest in the December month futures contract and ICICI Bank witnessed an addition of 5,233 units of Open Interest in the December month futures contract (Provisional).