Nifty witnesses huge losses on Friday; slips below 17050

Nifty witnessed huge losses on last day of trading week and ended the session below its crucial 17050 mark. Most of the sectoral indices ended in deep red, topped by the Nifty Realty index, which fell above 6 percent. On the other hand, Pharma and Healthcare index finished higher. Mid- and small-cap shares also faced selling pressure as Nifty Midcap 100 index fell 3.25% and Nifty Smallcap 100 index declined 2.9%. Market begun day on a somber note, after WHO flags new Covid-19 strain. World Health Organization officials met on Thursday to discuss a new coronavirus variant circulating in South Africa and Botswana. The new variant, called B.1.1529, carries an unusually large number of mutations, Francois Balloux, director of the UCL Genetics Institute. Further, index extended its losses as sentiments remain dampened after ICRA said the RBI’s revision of bad loan recognition and upgradation norms could bring a sharp spike in the non-performing assets of non-banking finance companies (NBFCs) in the country. In late afternoon session market widened losses to touched intraday low point and finished the session with cut of over two and half a percent.

Most of the sectoral indices ended in red except Pharma and Healthcare Index. The top gainers from the F&O segment were Cipla, Indiabulls Housing Finance and Alkem Laboratories. On the other hand, the top losers were PVR, Bandhan Bank and Indian Hotels Company. In the index option segment, maximum OI continues to be seen in the 17900 -18150 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 increased by 24.84% and reached 20.80. The 50 share Nifty down by 509.80 points or 2.91% to settle at 17,026.45.

Nifty December 2021 futures closed at 17031.80 (LTP) on Friday, at a premium of 5.35 points over spot closing of 17026.45, while Nifty January 2022 futures ended at 17096.00 (LTP), at a premium of 69.55 points over spot closing. Nifty December futures saw an addition of 11,640 units, taking the total open interest (OI) to 2,21,313 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).

From the most active contracts, Reliance Industries December 2021 futures traded at a discount of 22.30 points at 2413.00 (LTP) compared with spot closing of 2435.30. The numbers of contracts traded were 27,073 (Provisional).

Tata Steel December 2021 futures traded at a discount of 17.95 points at 1113.15 (LTP) compared with spot closing of 1131.10. The numbers of contracts traded were 14,935 (Provisional).

SBIN December 2021 futures traded at a discount of 5.05 points at 470.25 (LTP) compared with spot closing of 475.30. The numbers of contracts traded were 12,420 (Provisional).

Tata Motors December 2021 futures traded at a discount of 8.65 points at 460.95 (LTP) compared with spot closing of 469.60. The numbers of contracts traded were 12,247 (Provisional).

ICICI Bank December 2021 futures traded at a discount of 9.95 points at 722.05 (LTP) compared with spot closing of 732.00. The numbers of contracts traded were 11,370 (Provisional).

Among, Nifty calls, 18000 SP from the December month expiry was the most active call with an addition of 6,778 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with a contraction of 874 units open interests. The maximum OI outstanding for Calls was at 18000 SP (53,296 units) and that for Puts was at 17000 SP (81,225 units). The respective Support and Resistance levels of Nifty are: Resistance 17,259.33 -- Pivot Point 17,122.52 -- Support -- 16,889.63.

The Nifty Put Call Ratio (PCR) finally stood at (1.32) for December month contract. The top five scrips with highest PCR on Escorts (1.31), Dalmia Bharat (1.26), Eicher Motors (1.04), Crompton Greaves Consumer Electricls (1.01) and Bajaj Auto (0.87).

Among most active underlying, Reliance Industries witnessed an addition of 2,537 units of Open Interest in the December month futures contract, Tata Motors witnessed an addition of 1,260 units of Open Interest in the December month futures contract, Indiabulls Housing Finance witnessed an addition of 2,688 units of Open Interest in the December month futures contract, ZEEL witnessed an addition of 936 units of Open Interest in the December month futures contract and ICICI Bank witnessed an addition of 1,132 units of Open Interest in the December month futures contract (Provisional).