Nifty witnesses worst fall on Monday

The local benchmark -- Nifty -- witnessed worst fall on Monday amid resurgence of coronavirus outbreaks in Europe and some other regions. Market made cautious start as RBI data showed the country’s foreign exchange reserves declined by $763 million to $640.112 billion in the week ended November 12. Additional pessimism came as government increased goods and services tax (GST) applicable on finished products such as apparel, textiles and footwear from 5 percent to 12 percent, effective January 2022.

Selling pressure intensified in afternoon deal as traders were worried with exchange data showing that the foreign institutional investors (FIIs) were net sellers of stocks worth Rs 3,930.62 on Thursday, thus taking the total net selling to nearly Rs 10,000 crore so far this month in the cash segment. This is following Rs 25,572 crore worth selling in October. Since the start of this fiscal year, FIIs have net sold shares to the tune of Rs 75,500 crore. Finally, nifty ended sluggish day of trade below its 17500 mark. 

All the sectoral indices ended in red. The top gainers from the F&O segment were Vedanta, Vodafone Idea and Bharti Airtel. On the other hand, the top losers were Info Edge, Navin Fluorine International and Deepak Nitrite. In the index option segment, maximum OI continues to be seen in the 17950 -18300 calls and 16800 -17150 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 17.92% and reached 17.52. The 50 share Nifty down by 348.25 points or 1.96% to settle at 17,416.55.

Nifty November 2021 futures closed at 17449.90 (LTP) on Monday, at a premium of 33.35 points over spot closing of 17416.55, while Nifty December 2021 futures ended at 17502.00 (LTP), at a premium of 85.45 points over spot closing. Nifty November futures saw an addition of 593 units, taking the total outstanding open interest (OI) to 1,97,810 units. The near month derivatives contract will expire on November 25, 2021 (Provisional).

From the most active contracts, Reliance Industries November 2021 futures traded at a premium of 4.30 points at 2369.95 (LTP) compared with spot closing of 2365.65. The numbers of contracts traded were 65,909 (Provisional).

Tata Steel November 2021 futures traded at a premium of 2.90 points at 1169.70 (LTP) compared with spot closing of 1166.80. The numbers of contracts traded were 45,091 (Provisional).

Infosys November 2021 futures traded at a premium of 2.00 points at 1762.25 (LTP) compared with spot closing of 1760.25. The numbers of contracts traded were 38,689 (Provisional).

SBIN November 2021 futures traded at a premium of 0.00 points at 487.00 (LTP) compared with spot closing of 487.00. The numbers of contracts traded were 36,872 (Provisional).

Bharti Airtel November 2021 futures traded at a premium of 0.55 points at 741.90 (LTP) compared with spot closing of 741.35. The numbers of contracts traded were 35,391 (Provisional).

Among, Nifty calls, 17700 SP from the October month expiry was the most active call with an addition of 80,507 units open interests. Among Nifty puts, 17400 SP from the October month expiry was the most active put with an addition of 10,778 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,64,637 units) and that for Puts was at 17000 SP (80,894 units). The respective Support and Resistance levels of Nifty are: Resistance 17,721.05 -- Pivot Point 17,500.75 -- Support --17,196.25.

The Nifty Put Call Ratio (PCR) finally stood at (0.50) for October month contract. The top five scrips with highest PCR on Dalmia Bharat (1.12), Escorts (0.82), Adani Enterprises (0.77), Apollo Hospital (0.77) and Asian Paints (0.77).

Among most active underlying, Bharti Airtel witnessed an addition of 316 units of Open Interest in the October month futures contract, Reliance Industries witnessed a contraction of 1,696 units of Open Interest in the October month futures contract, ICICI Bank witnessed an addition of 943 units of Open Interest in the October month futures contract, Tata Motors witnessed a contraction of 1,493 units of Open Interest in the October month futures contract and SBIN witnessed an addition of 514 units of Open Interest in the October month futures contract (Provisional).