Nifty ends deep in red on Friday

S&P CNX -- Nifty ended the Friday’s session deep in red. After making cautious start, market soon entered into red zone, as traders were cautious with the Centre for Monitoring Indian Economy’s statement that the consumer sentiment index in November is far below the pre-pandemic levels though better than November last year, suggesting the economic recovery is excruciatingly slow and uninspiring. Continued foreign fund outflow dented sentiments in the markets. As per provisional data available on the NSE, Foreign institutional investors (FIIs) net sold shares worth Rs 1,468.71 crore. Market extended downside even after Ministry of Commerce and Industry in its latest report has said that India registered the highest ever annual FDI Inflow of $ 81.97 billion (provisional) in the financial year 2020-21. The Ministry of Commerce and Industry noted that FDI inflow in the last 7 financial years (2014-21) is $ 440.27 billion, which is nearly 58% of the total FDI inflow in last 21 financial years (2000-21: $ 763.83 billion). Index continued weak trade to touch intraday low point in last leg of trade. Finally nifty ended the session below 17000 mark.

Most of the sectoral indices ended in red except IT. The top gainers from the F&O segment were Wipro, Persistent Systems and Infosys. On the other hand, the top losers were BHEL, Apollo Hospitals Enterprise and Indiabulls Housing Finance. 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 2.78% and reached 16.34. The 50 share Nifty down by 263.20 points or 1.53% to settle at 16,985.20.

Nifty December 2021 futures closed at 17022.00 (LTP) on Friday, at a premium of 36.80 points over spot closing of 16985.20, while Nifty January 2022 futures ended at 17087.10 (LTP), at a premium of 101.90 points over spot closing. Nifty December futures saw a contraction of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 1,86,358 mn units. The near month derivatives contract will expire on December 30, 2021 (Provisional).

From the most active contracts, Infosys December 2021 futures traded at a premium of 5.70 points at 1828.70 (LTP) compared with spot closing of 1823.00. The numbers of contracts traded were 60,706 (Provisional).

Wipro December 2021 futures traded at a discount of 3.65 points at 671.10 (LTP) compared with spot closing of 674.75. The numbers of contracts traded were 54,488 (Provisional).

Reliance Industries December 2021 futures traded at a premium of 6.90 points at 2350.30 (LTP) compared with spot closing of 2343.40. The numbers of contracts traded were 43,144 (Provisional).

TCS December 2021 futures traded at a premium of 16.05 points at 3590.95 (LTP) compared with spot closing of 3574.90. The numbers of contracts traded were 29,364 (Provisional).

Indiabulls Housing Finance December 2021 futures traded at a premium of 0.75 points at 233.35 (LTP) compared with spot closing of 232.60. The numbers of contracts traded were 22,260 (Provisional).

Among, Nifty calls, 17300 SP from the December month expiry was the most active call with an addition of 7,526 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with a contraction of 348 units open interests. The maximum OI outstanding for Calls was at 18000 SP (80,019 units) and that for Puts was at 17000 SP (94,609 units). The respective Support and Resistance levels of Nifty are: Resistance 17,200.08 -- Pivot Point 17,083.27 -- Support -- 16,868.38.

The Nifty Put Call Ratio (PCR) finally stood at (1.23) for December month contract. The top five scrips with highest PCR on Escorts (1.13), Asian Paints (0.98), Infosys (0.88), Wipro (0.85) and Pidilite Industries (0.76).

Among most active underlying, Infosys witnessed an addition of 9,133 units of Open Interest in the December month futures contract, Wipro witnessed an addition of 12,025 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 3,981 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 1,225 units of Open Interest in the December month futures contract and Tata Motors witnessed an addition of 676 units of Open Interest in the December month futures contract (Provisional).