Nifty continues downward journey for third consecutive session

Continuing its downward journey for the third consecutive session, Nifty ended the day’s trade below its crucial 17700 mark on Friday. Market made negative start, as Centre extended the nationwide Covid-19 containment measures till November 30 as there has been localised spread of the virus in a few states and the disease continues to be a public health challenge in the country. Further, soon market trimmed its losses, after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the growth in Indian export basket during 1HFY22 showed a healthy mix of both labour-intensive items and high-value manufactured items. However, the rating agency expressed worries that it will not be easy to maintain the current export growth momentum, as the stimulus-induced demand in developed economies might normalise in 2022 and it could tilt back in favour of services. But, in afternoon session, index extended its losses to trade near lowest point. Sentiments remained down-beat with private report stating that Indians sending money to other countries have ended up paying Rs 26,300 crore as foreign exchange fees in 2020, despite the pandemic. Finally, Nifty ended the session with the cut of above a percent.

All the sectoral indices ended in red. The top gainers from the F&O segment were Canara Bank, Indigo and United Spirits. On the other hand, the top losers were Atul, IRCTC and RBL Bank. In the index option segment, maximum OI continues to be seen in the 18050 -18600 calls and 17200 -17650 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.72% and reached 17.43. The 50 share Nifty down by 185.60 points or 1.04% to settle at 17,671.65.

Nifty November 2021 futures closed at 17745.00 (LTP) on Friday, at a premium of 73.35 points over spot closing of 17671.65, while Nifty December 2021 futures ended at 17811.50 (LTP), at a premium of 139.85 points over spot closing. Nifty November futures saw an addition of 11,827 units, taking the total outstanding open interest (Contracts) to 2,20,076 units. The near month derivatives contract will expire on November 25, 2021 (Provisional).

From the most active contracts, IRCTC November 2021 futures traded at a premium of 3.60 points at 846.40 (LTP) compared with spot closing of 842.80. The numbers of contracts traded were 43,277 (Provisional).

Reliance Industries November 2021 futures traded at a premium of 8.00 points at 2548.00 (LTP) compared with spot closing of 2540.00. The numbers of contracts traded were 37,649 (Provisional).

SBIN November 2021 futures traded at a premium of 2.45 points at 506.45 (LTP) compared with spot closing of 504.00. The numbers of contracts traded were 33,988 (Provisional).

Dr Reddy November 2021 futures traded at a premium of 15.55 points at 4651.35 (LTP) compared with spot closing of 4635.80. The numbers of contracts traded were 33,107 (Provisional).

TCS November 2021 futures traded at a premium of 13.05 points at 3417.05 (LTP) compared with spot closing of 3404.00. The numbers of contracts traded were 26,267 (Provisional).

Among, Nifty calls, 18000 SP from the November month expiry was the most active call with a addition of 6,687 units open interests. Among Nifty puts, 17500 SP from the November month expiry was the most active put with an addition of 3,083 units open interests. The maximum OI outstanding for Calls was at 18500 SP (33,480 units) and that for Puts was at 17500 SP (39,234 units). The respective Support and Resistance levels of Nifty are: Resistance 18,098.82 -- Pivot Point 17,949.13 -- Support -- 17,707.57.

The Nifty Put Call Ratio (PCR) finally stood at (1.15) for November month contract. The top five scrips with highest PCR on Whirlpool of India (3.22), Balkrishna Industries (2.73), Dalmia Bharat (1.65), Abbott India (1.09) and J K Cement (1.00).

Among most active underlying, IRCTC witnessed an addition of 2,832 units of Open Interest in the November month futures contract, SBIN witnessed an addition of 4,744 units of Open Interest in the November month futures contract, ICICI Bank witnessed an addition of 3,439 units of Open Interest in the November month futures contract, Reliance Industries witnessed an addition of 3,937 units of Open Interest in the November month futures contract and Tata Power witnessed an addition of 753 units of Open Interest in the November month futures contract (Provisional).