Nifty breaks four day falling spree

In volatile trading session, S&P CNX -- Nifty -- finished the Thursday’s session on higher note. The top Nifty gainers are Bajaj Finance, Infosys, BPCL, Titan Company and Reliance Industries. Among the losers were Hindalco Industries, Cipla, Maruti Suzuki, ICICI Bank and Hero MotoCorp. Market made positive start, as traders took encouragement with a private report stating that the New Year will herald the return of normalcy and witness the growth momentum gaining steam, and pegged the real GDP growth estimate at 8.2 per cent for FY2022-23. Traders took support after an article on the state of the economy published in RBI Bulletin said that upbeat high-frequency indicators and consumer confidence show that the Indian economy continues to forge ahead, emerging out of shackles of the pandemic. It said the recovery is spearheaded by an uptick in private investment through November-December alongside a turnaround in bank credit offtake and high capex from the government sector (Centre and States).

In afternoon trade, market turned volatile, as Reserve Bank of India (RBI) turned net seller of the US currency in October 2021, after it sold $100 million on a net basis in the spot market. In the reporting month, the central bank had bought $7.755 billion from the spot market and sold $7.855 billion, showed the monthly RBI bulletin for December 2021. Market managed to end the session in green zone, as after Prime Minister Narendra Modi said that the Union cabinet's decision on designing and manufacturing semiconductor chips in India would encourage research and innovation, boost manufacturing and help fulfil the dream of Atmanirbhar Bharat. Finally, nifty snapped four day falling spree. 

Most of the sectoral indices ended in red except IT. The top gainers from the F&O segment were SRF, JK Cement and Persistent Systems. On the other hand, the top losers were Indiabulls Housing Finance, TVS Motor Company and Torrent Power. 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 decreased by 7.68% and reached 15.90. The 50 share Nifty up by 27.00 points or 0.16% to settle at 17,248.40.

Nifty December 2021 futures closed at 17340.05 (LTP) on Thursday, at a premium of 91.65 points over spot closing of 17248.40, while Nifty January 2022 futures ended at 17400.00 (LTP), at a premium of 151.60 points over spot closing. Nifty December futures saw a contraction of 12,015 units, taking the total outstanding open interest (OI) to 2,27,721 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 11.05 points at 2425.00 (LTP) compared with spot closing of 2413.95. The numbers of contracts traded were 32,150 (Provisional).

Infosys December 2021 futures traded at a premium of 8.50 points at 1785.50 (LTP) compared with spot closing of 1777.00. The numbers of contracts traded were 31,610 (Provisional).

ICICI Bank December 2021 futures traded at a premium of 3.35 points at 745.30 (LTP) compared with spot closing of 741.95. The numbers of contracts traded were 16,847 (Provisional).

Bajaj Finance December 2021 futures traded at a premium of 19.00 points at 7064.00 (LTP) compared with spot closing of 7045.00. The numbers of contracts traded were 16,191 (Provisional).

Tata Steel December 2021 futures traded at a premium of 5.80 points at 1161.95 (LTP) compared with spot closing of 1156.15. The numbers of contracts traded were 15,931 (Provisional).

Among, Nifty calls, 17300 SP from the December month expiry was the most active call with an addition of 1,368 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with a contraction of 165 units open interests. The maximum OI outstanding for Calls was at 18000 SP (78,388 units) and that for Puts was at 17000 SP (95,483 units). The respective Support and Resistance levels of Nifty are: Resistance 17,356.85 -- Pivot Point 17,270.90 -- Support -- 17,162.45.

The Nifty Put Call Ratio (PCR) finally stood at (1.36) for December month contract. The top five scrips with highest PCR on Asian Paints (1.15), Escorts (1.13), Pidilite Industries (0.80), Jindal Steel & Power (0.77) and LIC Housing Finance (0.75).

Among most active underlying, Reliance Industries witnessed a contraction of 715 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 2,976 units of Open Interest in the December month futures contract, Infosys witnessed an addition of 3,633 units of Open Interest in the December month futures contract, Bajaj Finance witnessed a contraction of 143 units of Open Interest in the December month futures contract and Tata Power witnessed an addition of 619 units of Open Interest in the December month futures contract (Provisional).