Heavy selling pressure in last leg of trade dragged the S&P CNX -- Nifty below its crucial 17000 mark on Monday. Market made cautious start amid concerns over the spread of the Omicron variant in the country. Further, market extended its losses with India Ratings and Research (Ind-Ra) stating that tightening of norms may increase non-banking finance companies' (NBFCs) headline non-performing advances (NPA) by around one third. However, the impact on provisioning could be modest, given NBFCs are using 'IND-As' and generally for higher rated NBFCs, provision policy is more conservative than 'IRAC' requirements. Market continued its down fall, as country's foreign exchange reserves declined by $2.713 billion to $637.687 billion in the week to November 26, RBI data showed. In the reporting week ended November 26, the dip in the foreign exchange reserves was on account of a decline in foreign currency assets (FCA), a major component of the overall reserves and gold reserves. Selling got intensified during the late afternoon session to touch intraday low point. Finally, Nifty ended the session with the cut of above one and half a percent.
All the sectoral indices ended in red. The top gainers from the F&O segment were ZEEL, Vodafone Idea and Metropolis Lab. On the other hand, the top losers were PVR, Indus Towers and Coal India. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 15900 -16300 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 8.79% and reached 20.08. The 50 share Nifty down by 284.45 points or 1.65% to settle at 16,912.25.
Nifty December 2021 futures closed at 16950.00 (LTP) on Monday, at a premium of 37.75 points over spot closing of 16912.25, while Nifty January 2022 futures ended at 17007.00 (LTP), at a premium of 94.75 points over spot closing. Nifty December futures saw an addition of 8,161 units, taking the total open interest (Contracts) to 2,33,948 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).
From the most active contracts, Tata Steel December 2021 futures traded at a premium of 1.15 points at 1108.80 (LTP) compared with spot closing of 1107.65. The numbers of contracts traded were 30,411 (Provisional).
Reliance Industries December 2021 futures traded at a premium of 9.05 points at 2375.00 (LTP) compared with spot closing of 2365.95. The numbers of contracts traded were 29,108 (Provisional).
ICICI Bank December 2021 futures traded at a premium of 2.55 points at 711.50 (LTP) compared with spot closing of 708.95. The numbers of contracts traded were 24,742 (Provisional).
TCS December 2021 futures traded at a premium of 8.15 points at 3541.95 (LTP) compared with spot closing of 3533.80. The numbers of contracts traded were 19,103 (Provisional).
Infosys December 2021 futures traded at a premium of 6.95 points at 1701.90 (LTP) compared with spot closing of 1694.95. The numbers of contracts traded were 17,641 (Provisional).
Among, Nifty calls, 17200 SP from the December month expiry was the most active call with an addition of 7,006 units open interests. Among Nifty puts, 16500 SP from the December month expiry was the most active put with an addition of 2,830 units open interests. The maximum OI outstanding for Calls was at 18000 SP (69,246 units) and that for Puts was at 16000 SP (68,782 units). The respective Support and Resistance levels of Nifty are: Resistance 17,122.10 -- Pivot Point 17,006.90 -- Support -- 16,797.05.
The Nifty Put Call Ratio (PCR) finally stood at (1.35) for December month contract. The top five scrips with highest PCR on Escorts (1.29), JK Cement (0.89), LIC Housing Finance (0.86), Titan Company (0.85) and Eicher Motors (0.81).
Among most active underlying, ICICI Bank witnessed an addition of 3,134 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 2,921 units of Open Interest in the December month futures contract, ZEEL witnessed an addition of 400 units of Open Interest in the December month futures contract, Tata Steel witnessed a contraction of 143 units of Open Interest in the December month futures contract and Tata Motors witnessed an addition of 509 units of Open Interest in the December month futures contract (Provisional).
