NSE gauge -- Nifty50 -- witnessed considerable losses on last trading day of week, sliding below its crucial 14,450 levels during the day. Market made a cautious start and further extended its falls, as rating agency CRISIL’s report which projected CPI Inflation at 6.4% for fiscal 2021 (FY21). It mentioned that after eight months above the Reserve Bank of India (RBI's) target band of 2-6%, Consumer Price Index (CPI) inflation was finally back in range, declining for the second straight month to a below-consensus 4.6% in December, from 6.9% in November. Average CPI inflation during April-December now measures 6.6%, down from the April-November average of 6.9%. Index continued its trade in red zone even after Prime Minister Narendra Modi will launch India's Covid-19 vaccination drive tomorrow via video conferencing. This will be the world's largest vaccination programme covering the entire length and breadth of the country. In late afternoon session, market added more losses to end the session near low point.
All the sectoral indices ended in red. The top gainers from the F&O segment were Vodafone idea, Tata Motors and IDFC First Bank. On the other hand, the top losers were Tech Mahindra, Muthoot Finance and Canara Bank. In the index option segment, maximum OI continues to be seen in the 14100 - 15,500 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 4.26% and reached 24.01. The 50 share Nifty down by 161.90 points or 1.11% to settle at 14,433.70.
Nifty January 2021 futures closed at 14460.00 (LTP) on Friday, at a premium of 26.30 points over spot closing of 14433.70, while Nifty February 2021 futures ended at 14495.80 (LTP), at a premium of 62.10 points over spot closing. Nifty January futures saw an addition of 1,835 units, taking the total open interest (Contracts) to 1,78,193 units. The near month derivatives contract will expire on January 28, 2021 (Provisional).
From the most active contracts, Reliance Industries January 2021 futures traded at a discount of 0.05 points at 1938.00 (LTP) compared with spot closing of 1938.05. The numbers of contracts traded were 47,736 (Provisional).
Tata Motors January 2021 futures traded at a premium of 1.15 points at 262.55 (LTP) compared with spot closing of 261.40. The numbers of contracts traded were 45,355 (Provisional).
Bharti Airtel January 2021 futures traded at a premium of 1.05 points at 604.55 (LTP) compared with spot closing of 603.50. The numbers of contracts traded were 38,996(Provisional).
HCL Tech January 2021 futures traded at a discount of 1.50 points at 988.00 (LTP) compared with spot closing of 989.50. The numbers of contracts traded were 28,693 (Provisional).
Infosys January 2021 futures traded at a premium of 1.90 points at 1343.55 (LTP) compared with spot closing of 1341.65. The numbers of contracts traded were 25,700 (Provisional).
Among, Nifty calls, 14600 SP from the January month expiry was the most active call with an addition of 4,765 units open interests. Among Nifty puts, 14000 SP from the January month expiry was the most active put with an addition of 2,005 units open interests. The maximum OI outstanding for Calls was at 15000 SP (33,177 units) and that for Puts was at 14000 SP (42,763 units). The respective Support and Resistance levels of Nifty are: Resistance 14,581.48 -- Pivot Point 14,469.67 -- Support -- 14,321.88.
The Nifty Put Call Ratio (PCR) finally stood at (1.53) for January month contract. The top five scrips with highest PCR on Vedanta (1.17), Tata Motors (1.14), DLF (0.82), SBIN (0.81) and Ashok Leyland (0.80).
Among most active underlying, Tata Motors witnessed an addition of 1,228 units of Open Interest in the January month futures contract followed by Bharti Airtel witnessed an addition of 3,414 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 2,456 units of Open Interest in the January month futures contract, SAIL witnessed an addition of 4,059 units of Open Interest in the January month futures contract and Tata Steel witnessed an addition of 1,006 units of Open Interest in the January month futures contract (Provisional).
