S&P CNX – Nifty finished the session near neutral in negative zone on Friday. Market made cautious start, as Health Ministry said that there are 23 cases of Omicron variant of Covid-19 in India and authorities are closely monitoring the situation. Maharashtra leads the chart with 10 cases, followed by Rajasthan with nine, while globally there are 2303 cases of Omicron variant. Market continued its weak trade, as traders were cautious with former Reserve Bank of India Governor Duvvuri Subbarao’s statement that the central bank could lose control over the money supply and inflation management if cryptocurrency is allowed in the country. Rao also said India's case for issuing a central bank digital currency (CBDC) may not be strong as there are capital controls. However, market trimmed most of it losses in last leg of the trade as traders took some support with private report stating that the economy to continue to show positive surprises and record up to 9 percent growth in the next fiscal. For the current financial year too, the report anticipates growth to be higher than the consensus forecast of 8.4-9.5 percent, and printing in at around 10.5 percent.
Traders were seen piling up positions in Auto, Bank and Media sectors, while selling was witnessed in FMCG, IT and Pharma sectors’ stocks. The top gainers from the F&O segment were IEX, Siemens and Polycab India. On the other hand, the top losers were Firstsource Solutions, Atul 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 3.26% and reached 16.06. The 50 share Nifty down by 5.55 points or 0.03% to settle at 17,511.30.
Nifty December 2021 futures closed at 17546.00 (LTP) on Friday, at a premium of 34.70 points over spot closing of 17511.30, while Nifty January 2022 futures ended at 17599.00 (LTP), at a premium of 87.70 points over spot closing. Nifty December futures saw an addition of 1,626 units, taking the total open interest (OI) to 2,28,626 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).
From the most active contracts, ITC December 2021 futures traded at a premium of 0.70 points at 236.60 (LTP) compared with spot closing of 235.90. The numbers of contracts traded were 20,775 (Provisional).
Reliance Industries December 2021 futures traded at a premium of 10.80 points at 2468.05 (LTP) compared with spot closing of 2457.25. The numbers of contracts traded were 19,769 (Provisional).
IEX December 2021 futures traded at a premium of 0.10 points at 295.30 (LTP) compared with spot closing of 295.20. The numbers of contracts traded were 18,529 (Provisional).
Tata Steel December 2021 futures traded at a premium of 3.00 points at 1181.00 (LTP) compared with spot closing of 1178.00. The numbers of contracts traded were 16,377 (Provisional).
Adani Ports December 2021 futures traded at a premium of 4.15 points at 771.65 (LTP) compared with spot closing of 767.50. The numbers of contracts traded were 15,917 (Provisional).
Among, Nifty calls, 18000 SP from the December month expiry was the most active call with a contraction of 796 units open interests. Among Nifty puts, 17500 SP from the December month expiry was the most active put with an addition of 854 units open interests. The maximum OI outstanding for Calls was at 18000 SP (66,256 units) and that for Puts was at 17000 SP (99,636 units). The respective Support and Resistance levels of Nifty are: Resistance 17,562.02 -- Pivot Point 17,483.63 -- Support -- 17,432.92.
The Nifty Put Call Ratio (PCR) finally stood at (1.47) for December month contract. The top five scrips with highest PCR on Asian Paints (1.13), Escorts (1.02), LIC Housing Finance (0.92), Piramal Enterprises (0.92) and and Jindal Steel & Power (0.86).
Among most active underlying, IEX witnessed a contraction of 576 units of Open Interest in the December month futures contract, ITC witnessed an addition of 2,216 units of Open Interest in the December month futures contract, Adani Ports witnessed an addition of 1,219 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 605 units of Open Interest in the December month futures contract and Adani Enterprises witnessed an addition of 224 units of Open Interest in the December month futures contract (Provisional).
