The local benchmark -- Nifty -- extended its gains for third day on Thursday. Market made positive start and soon entered into red zone amid foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 579.27 crore, as per provisional data available on the NSE. Besides, admitting that credit growth is ‘very low’ given the size and growth rate of the economy, the Reserve Bank said for both the numbers to match, ‘the very very wide output gap’ has to close. Further, market extended its losses with private report that the India's retail inflation likely to accelerate last month towards the upper limit of the central bank's target range as fruit and vegetable prices climbed. However, in afternoon trade, market wiped out all losses to trade in green zone with Pradeep Multani, President of PHD Chamber of Commerce and Industry’s statement that the accommodative policy stance at this juncture would not only pave the way for a double digit GDP growth in the current year 2021-22, but will also help in creating a strong, sustainable and vibrant economy going forward. He also said that it is inspiring to note that the RBI has retained the projection for GDP growth at 9.5 per cent for 2021-22 despite the prevailing uncertainty caused by a new variant of Coronavirus. Market maintained its trade above water and ended the session above its 17500 level.
Traders were seen piling up positions in Auto, FMCG and Media sectors, while selling was witnessed in Bankex, IT and Realty sectors’ stocks. The top gainers from the F&O segment were Vodafone Idea, ITC and Granules India. On the other hand, the top losers were Chambal Fertilisers & Chemicals, Biocon and SBI Card. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 19900 -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 3.83% and reached 16.60. The 50 share Nifty up by 47.10 points or 0.27% to settle at 17,516.85.
Nifty December 2021 futures closed at 17557.00 (LTP) on Thursday, at a premium of 40.15 points over spot closing of 17516.85, while Nifty January 2022 futures ended at 17619.00 (LTP), at a premium of 102.15 points over spot closing. Nifty December futures saw an addition of 10,202 units, taking the total open interest (Contracts) to 2,31,590 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 premium of 6.20 points at 2459.20 (LTP) compared with spot closing of 2453.00. The numbers of contracts traded were 34,885 (Provisional).
ITC December 2021 futures traded at a premium of 1.10 points at 237.10 (LTP) compared with spot closing of 236.00. The numbers of contracts traded were 34,357 (Provisional).
ICICI Bank December 2021 futures traded at a premium of 1.80 points at 756.10 (LTP) compared with spot closing of 754.30. The numbers of contracts traded were 18,841 (Provisional).
Kotak Mahindra Bank December 2021 futures traded at a premium of 8.30 points at 1927.05 (LTP) compared with spot closing of 1918.75. The numbers of contracts traded were 17,767 (Provisional).
Tata Steel December 2021 futures traded at a premium of 1.60 points at 1178.60 (LTP) compared with spot closing of 1177.00. The numbers of contracts traded were 17,630 (Provisional).
Among, Nifty calls, 18000 SP from the December month expiry was the most active call with an addition of 873 units open interests. Among Nifty puts, 17500 SP from the December month expiry was the most active put with an addition of 7,810 units open interests. The maximum OI outstanding for Calls was at 18000 SP (67,146 units) and that for Puts was at 17000 SP (97,356 units). The respective Support and Resistance levels of Nifty are: Resistance 17,580.20 -- Pivot Point 17,479.90 -- Support -- 17,416.55.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for December month contract. The top five scrips with highest PCR on Escorts (0.96), LIC Housing Finance (0.95), Piramal Enterprises (0.92), Bajaj Finserv (0.86) and Jindal Steel & Power (0.85).
Among most active underlying, ITC witnessed a contraction of 104 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 1,211 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 1,787 units of Open Interest in the December month futures contract, HDFC Bank witnessed an addition of 2,490 units of Open Interest in the December month futures contract and Vodafone Idea witnessed an addition of 845 units of Open Interest in the December month futures contract (Provisional).
