The local benchmark -- Nifty -- continued its free fall for second day and ended the session below 16650 mark. Market made negative start, as global sentiment remained cautious amid rising Omircon coronavirus cases worldwide. India's Omicron COVID count rose to 151 on Sunday after Maharashtra reported six more cases. Index added more losses as continuous foreign fund outflow weighed traders’ sentiments. Foreign portfolio investors (FPIs) have pulled out Rs 17,696 crore from the Indian markets in December so far amid uncertainty due to a new coronavirus strain, Omicron, and expectations of faster tapering by the US Federal Reserve. Market continued to trade under selling pressure, as RBI data showed declining for the third consecutive week, India’s forex reserves dipped by $77 million to reach $635.828 billion for the week ended December 10. Traders were also concerned, as a private report estimated 6.3 per cent real GDP expansion in FY23, among the lowest within the analyst community and stated that there is uncertainty on the growth trajectory. Finally, Nifty ended the session with the cut of above two percent.
All the sectoral indices ended in red. The top gainers from the F&O segment were Cipla, Alembic Pharmaceuticals and HUL. On the other hand, the top losers were LTTS, Delta Corp and AU Small Finance Bank. 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 16.08% and reached 18.97. The 50 share Nifty down by 371.00 points or 2.18% to settle at 16,614.20.
Nifty December 2021 futures closed at 16628.35 (LTP) on Monday, at a premium of 14.15 points over spot closing of 16614.20, while Nifty January 2022 futures ended at 16685.00 (LTP), at a premium of 70.80 points over spot closing. Nifty December futures saw an addition of 2,717 units, taking the total outstanding open interest (OI) to 2,21,149 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 2.45 points at 2279.25 (LTP) compared with spot closing of 2276.80. The numbers of contracts traded were 40,238 (Provisional).
Infosys December 2021 futures traded at a premium of 3.90 points at 1804.60 (LTP) compared with spot closing of 1800.70. The numbers of contracts traded were 24,494 (Provisional).
Tata Steel December 2021 futures traded at a premium of 1.95 points at 1074.95 (LTP) compared with spot closing of 1073.00. The numbers of contracts traded were 24,183 (Provisional).
ICICI Bank December 2021 futures traded at a premium of 0.90 points at 710.90 (LTP) compared with spot closing of 710.00. The numbers of contracts traded were 23,136 (Provisional).
HDFC Bank December 2021 futures traded at a premium of 3.80 points at 1428.30 (LTP) compared with spot closing of 1424.50. The numbers of contracts traded were 22,944 (Provisional).
Among, Nifty calls, 17000 SP from the December month expiry was the most active call with an addition of 14,423 units open interests. Among Nifty puts, 16500 SP from the December month expiry was the most active put with an addition of 4,450 units open interests. The maximum OI outstanding for Calls was at 18000 SP (67,829 units) and that for Puts was at 16500 SP (64,686 units). The respective Support and Resistance levels of Nifty are: Resistance 16,832.80 -- Pivot Point 16,621.50 -- Support -- 16,402.90.
The Nifty Put Call Ratio (PCR) finally stood at (1.10) for December month contract. The top five scrips with highest PCR on Escorts (1.16), Asian Paints (0.92), Infosys (0.73), Vodafone Idea (0.73) and Pidilite Industries (0.73).
Among most active underlying, Reliance Industries witnessed a contraction of 1,946 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 2,288 units of Open Interest in the December month futures contract, Tata Motors witnessed a contraction of 42 units of Open Interest in the December month futures contract, Axis Bank witnessed an addition of 1,518 units of Open Interest in the December month futures contract and HDFC Bank witnessed an addition of 13 units of Open Interest in the December month futures contract (Provisional).
