After spending most part of day in green zone, local benchmark -- Nifty -- ended Tuesday’s session below 17000 mark. Market made positive start, as trader took support with Minister of State for Finance Pankaj Chaudhary’s statement the net direct tax collection grew nearly 68 per cent during April 1 to November 23 to more than Rs 6.92 lakh crore. Further, index trimmed some of its gains but managed to trade in green with Crisil Ratings in its latest report stating that after weathering multiple challenges over the past three fiscals, asset under management (AUM) of non-banking financial companies' (NBFCs) and housing finance companies (HFCs) is set to grow 8-10 percent in the fiscal 2023, helped by improvement in economic activity and strengthened balance sheet buffers.
Market continued to trade in green, as India Ratings expects the economy to grow 8.3 per cent in Q2 and close the year with 9.4 per cent in FY'22. However, in last leg of trade market wiped out all its gains to end the session in red zone. The market got hit after Moody’s Analytics said the Omicron variant of COVID-19 adds new uncertainties to the global economic outlook but much will depend on its speed of transmission, hospitalisation and death rates, and also the effectiveness of vaccines.
Most of the sectoral indices ended in red except FMCG, Pharma and IT. The top gainers from the F&O segment were Navin Fluorine International, REC and Indian Hotels Company. On the other hand, the top losers were Tata Steel, Mphasis and Godrej Properties. 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 1.62% and reached 21.17. The 50 share Nifty down by 70.75 points or 0.41% to settle at 16,983.20.
Nifty December 2021 futures closed at 17036.95 (LTP) on Tuesday, at a premium of 53.75 points over spot closing of 16983.20, while Nifty January 2022 futures ended at 17096.80 (LTP), at a premium of 113.60 points over spot closing. Nifty December futures’ total outstanding open interest (OI) stood at 2,18,763 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 23.70 points at 2414.00 (LTP) compared with spot closing of 2437.70. The numbers of contracts traded were 58,746 (Provisional).
Tata Steel December 2021 futures traded at a discount of 36.90 points at 1073.00 (LTP) compared with spot closing of 1109.90. The numbers of contracts traded were 29,854 (Provisional).
TCS December 2021 futures traded at a premium of 41.95 points at 3545.45 (LTP) compared with spot closing of 3503.50. The numbers of contracts traded were 24,590 (Provisional).
SBIN December 2021 futures traded at a discount of 4.90 points at 461.30 (LTP) compared with spot closing of 466.20. The numbers of contracts traded were 23,965 (Provisional).
HDFC Bank December 2021 futures traded at a discount of 5.45 points at 1493.60 (LTP) compared with spot closing of 1499.05. The numbers of contracts traded were 20,518 (Provisional).
The maximum OI outstanding for Calls was at 18000 SP (61,839 units) and that for Puts was at 17000 SP (88,221 units). The respective Support and Resistance levels of Nifty are: Resistance 17,228.10 -- Pivot Point 17,079.75 -- Support -- 16,834.85.
The Nifty Put Call Ratio (PCR) finally stood at (1.28) for December month contract. The top five scrips with highest PCR on Escorts (1.19), Eicher Motors (1.11), Bajaj Finserv (0.92), Titan Company (0.92) and Dalmia Bharat (0.88).
