Nifty ends below 17400 level on Monday

Nifty ended Monday’s trading session below its 17400 level. Index dragged by losses in Reliance Industries, Infosys, HDFC and HDFC Bank, Market made positive start, as traders took support with the government data showing that India's industrial production rose 3.2 per cent in October 2021. As per the Index of Industrial Production (IIP) data by the National Statistical Office (NSO), the manufacturing sector's output grew 2 per cent in October. Market continued firm trade, as the finance ministry said India's economic recovery is expected to strengthen in the remaining quarters of the current fiscal year with the investment cycle kicking off, and projected 7% annual growth until the end of the decade.

However, in afternoon trade market wiped out all its gains to trade lower, as RBI Governor cautioned depositors for chasing high returns amid greater risk. Some cautiousness also came with the reports that the government is unlikely to announce capital infusion for public sector banks (PSBs) in the upcoming Budget, as their financial health has improved on the back of reduction in bad loans. Market continued weak trade till the end and finished the session with the cut of above half a percent.

Most of the sectoral indices ended in red except IT. The top gainers from the F&O segment were Strides Pharma Science, Birlasoft and Delta Corp. On the other hand, the top losers were IEX, ZEEL and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 16900 -17250 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.17% and reached 16.57. The 50 share Nifty down by 143.05 points or 0.82% to settle at 17,368.25.

Nifty December 2021 futures closed at 17462.00 on Monday, at a premium of 93.75 points over spot closing of 17368.25, while Nifty January 2022 futures ended at 17518.00, at a premium of 149.75 points over spot closing. Nifty December futures saw an addition of 271 units, taking the total open interest (Contracts) to 2,22,096  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 13.55 points at 2425.00 (LTP) compared with spot closing of 2411.45. The numbers of contracts traded were 32,340 (Provisional).

Axis Bank December 2021 futures traded at a premium of 3.55 points at 708.05 (LTP) compared with spot closing of 704.50. The numbers of contracts traded were 20,815 (Provisional).

ICICI Bank December 2021 futures traded at a premium of 3.55 points at 758.40 (LTP) compared with spot closing of 754.85. The numbers of contracts traded were 19,279 (Provisional).

Tata Steel December 2021 futures traded at a premium of 4.95 points at 1172.15 (LTP) compared with spot closing of 1167.20. The numbers of contracts traded were 19,157 (Provisional).

Infosys December 2021 futures traded at a premium of 8.40 points at 1755.40 (LTP) compared with spot closing of 1747.00. The numbers of contracts traded were 17,216 (Provisional).

Among, Nifty calls, 17500 SP from the December month expiry was the most active call with a contraction of 2,554 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with an addition of 77,898 units open interests. The maximum OI outstanding for Calls was at 18000 SP (73,643 units) and that for Puts was at 17000 SP (1,01,619 units). The respective Support and Resistance levels of Nifty are: Resistance 17,553.18 -- Pivot Point 17,454.57 -- Support -- 17,269.63.

The Nifty Put Call Ratio (PCR) finally stood at (1.39) for December month contract. The top five scrips with highest PCR on Asian Paints (1.17), Escorts (1.06), LIC Housing Finance (0.85), NMDC (0.83) and Jindal Steel & Power (0.81).

Among most active underlying, ICICI Bank witnessed an addition of 2,994 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 7,899 units of Open Interest in the December month futures contract, Axis Bank witnessed an addition of 2,458 units of Open Interest in the December month futures contract, Tata Motors witnessed an addition of 335 units of Open Interest in the December month futures contract and Tata Power witnessed an addition of 410 units of Open Interest in the December month futures contract (Provisional).