Nifty extends fall for third day

S&P CNX -- Nifty extended its losses for third straight session on Tuesday. Market made negative start after country's retail inflation rate, which is measured by the Consumer Price Index (CPI), rose to 4.91 percent during the month of November 2021. The inflation has increased sequentially, as it was recorded at 4.48 percent in October 2021. The uptick on sequential basis was led by an increase in food prices, particularly vegetables. Further, market extended its losses, as India’s inflation based on wholesale price index (WPI) jumped to 14.23% in the month of November as against 12.54% in October. The annual rate of inflation is 14.23% (Provisional) for the month of November 2021 as compared to 2.29% in November 2020. The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year. Index continued its downfall till the end and ended the session below its 17350 mark.

Most of the sectoral indices ended in red except IT, Media and Metal. The top gainers from the F&O segment were Aditya Birla Fashion and Retail, Lupin and Pfizer. On the other hand, the top losers were Piramal Enterprises, NMDC and Shriram Transport Finance Company. 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 2.30% and reached 16.95. The 50 share Nifty down by 43.35 points or 0.25% to settle at 17,324.90.

Nifty December 2021 futures closed at 17352.60 (LTP) on Tuesday, at a premium of 27.70 points over spot closing of 17324.90, while Nifty January 2022 futures ended at 17410.00 (LTP), at a premium of 85.10 points over spot closing. Nifty December futures saw an addition of 23,146 units, taking the total outstanding open interest (OI) to 2,40,520 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).

From the most active contracts, Kotak Mahindra Bank December 2021 futures traded at a premium of 7.20 points at 1846.90 (LTP) compared with spot closing of 1839.70. The numbers of contracts traded were 33,119 (Provisional).

Reliance Industries December 2021 futures traded at a premium of 10.30 points at 2392.80 (LTP) compared with spot closing of 2382.50. The numbers of contracts traded were 25,286 (Provisional).

Lupin December 2021 futures traded at a premium of 4.90 points at 950.90 (LTP) compared with spot closing of 946.00. The numbers of contracts traded were 22,175 (Provisional).

ITC December 2021 futures traded at a premium of 0.50 points at 228.70 (LTP) compared with spot closing of 228.20. The numbers of contracts traded were 22,025 (Provisional).

Infosys December 2021 futures traded at a premium of 5.85 points at 1749.60 (LTP) compared with spot closing of 1743.75. The numbers of contracts traded were 18,310 (Provisional).

Among, Nifty calls, 17500 SP from the December month expiry was the most active call with an addition of 770 units open interests. Among Nifty puts, 17300 SP from the December month expiry was the most active put with an addition of 14,932 units open interests. The maximum OI outstanding for Calls was at 18000 SP (75,575 units) and that for Puts was at 17000 SP (1,07,835 units). The respective Support and Resistance levels of Nifty are: Resistance 17,392.13 -- Pivot Point 17,308.97 -- Support -- 17,241.73.

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 (1.16), Escorts (1.07), JSPL (0.82), LIC Housing Finance (0.82) and NMDC (0.78).

Among most active underlying, Kotak Mahindra Bank witnessed an addition of 11,885 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 3,420 units of Open Interest in the December month futures contract, Lupin witnessed an addition of 1,399 units of Open Interest in the December month futures contract, ITC witnessed an addition of 1,876 units of Open Interest in the December month futures contract and Reliance Industries witnessed an addition of 4,342 units of Open Interest in the December month futures contract (Provisional).