Nifty ended two day losing streak on Tuesday, led by gains in media, consumer durables and metal stocks following a positive trend in global markets. Mid- and small-cap shares jumped as Nifty Midcap 100 index climbed 1.28 per cent and Nifty Smallcap 100 index surged 1.25 per cent. Market made positive start, as Joint Secretary in the Department of Commerce Amitabh Kumar said Indian exports showed a turnaround after December last year and are still going strong. Further, market extended its gains to trade higher with report that the Asian Development Bank (ADB) will provide $350 million loan to improve access to urban services in India by accelerating policy actions and reforms to enhance service delivery and promote performance-based central fiscal transfers to urban local bodies (ULBs).
However, in last leg of trade, index trimmed half its gains to touch intraday low point, as traders were worried amid report that India has recorded 200 cases of the Omicron coronavirus variant across 12 states, mostly in the western state of Maharashtra and the nation's capital New Delhi. Though, nifty managed to end with healthy gains as traders took some support as Prime Minister Narendra Modi assured India Inc that the government would focus on reducing the compliance burden while exhorting the top companies to make full use of the production-linked incentive (PLI) scheme. Finally, nifty ended the session with gains of over half a percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were Indus Towers, National Aluminium Company and Godrej Consumer Products. On the other hand, the top losers were Bank of Baroda, Power Grid Corporation of India 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 decreased by 7.52% and reached 17.54. The 50 share Nifty up by 156.65 points or 0.94% to settle at 16,770.85.
Nifty December 2021 futures closed at 16814.00 (LTP) on Tuesday, at a premium of 43.15 points over spot closing of 16770.85, while Nifty January 2022 futures ended at 16864.40 (LTP), at a premium of 93.55 points over spot closing. Nifty December futures saw a contraction of 2,050 units, taking the total outstanding open interest (OI) to 2,03,946 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 6.00 points at 2319.00 (LTP) compared with spot closing of 2313.00. The numbers of contracts traded were 30,681 (Provisional).
ZEEL December 2021 futures traded at a premium of 0.35 points at 342.05 (LTP) compared with spot closing of 341.70. The numbers of contracts traded were 26,980 (Provisional).
Tata Steel December 2021 futures traded at a discount of 0.30 points at 1108.55 (LTP) compared with spot closing of 1108.85. The numbers of contracts traded were 21,059 (Provisional).
Infosys December 2021 futures traded at a premium of 5.30 points at 1820.00 (LTP) compared with spot closing of 1814.70. The numbers of contracts traded were 20,203 (Provisional).
TCS December 2021 futures traded at a premium of 14.00 points at 3625.00 (LTP) compared with spot closing of 3611.00. The numbers of contracts traded were 19,502 (Provisional).
Among, Nifty calls, 17000 SP from the December month expiry was the most active call with a contraction of 394 units open interests. Among Nifty puts, 16500 SP from the December month expiry was the most active put with an addition of 9,737 units open interests. The maximum OI outstanding for Calls was at 18000 SP (66,392 units) and that for Puts was at 16500 SP (73,732 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 (1.11) for December month contract. The top five scrips with highest PCR on Escorts (1.17), Asian Paints (0.96), Wipro (0.91), Infosys (0.81) and Indigo (0.72).
Among most active underlying, ZEEL witnessed an addition of 1,223 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 2,292 units of Open Interest in the December month futures contract, Reliance Industries witnessed a contraction of 1,429 units of Open Interest in the December month futures contract, Tata Motors witnessed a contraction of 127 units of Open Interest in the December month futures contract and Axis Bank witnessed an addition of 1,232 units of Open Interest in the December month futures contract (Provisional).
