S&P CNX – Nifty ended higher for the third straight day. Among sectoral gauges, a strong rally was seen in IT, FMCG, realty indices, while media, metal indices ended in the red. Market made positive start, as global risk sentiment improved after a study showed hospitalisation risk from Omicron was lower compared with the Delta coronavirus variant. Two new British studies provide some early hints that the Omicron variant of the coronavirus may be milder than the Delta version. Market continued its trade in green, as I-T department has said income tax refunds of over Rs 1,44,328 crore have been issued to 1.38 crore taxpayers from April 01, 2021 to December 20, 2021 of this fiscal. This includes 99.75 lakh refunds of Assessment Year (AY) 2021-22 (fiscal ended March 31, 2021) amounting to Rs 20,451.95 crore.
Some support also came as rating agency ICRA stated that profitability of sugar, fertiliser and dairy sectors will remain stable in FY22, with only three months left to close the financial year 21-22. Index continued the gaining momentum till the end, as Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan have held talks on December 21, 2021 to expedite talks for the proposed free trade agreement, which aimed at enhancing economic ties between the countries. Finally, nifty finished the session above 17050 mark.
Most of the sectoral indices ended in green except Media and Metal. The top gainers from the F&O segment were Firstsource Solutions, Birlasoft and Cholamandalam Investment and Fin Co. On the other hand, the top losers were JSW Steel, Divi's Laboratories and ZEEL. In the index option segment, maximum OI continues to be seen in the 17900 -18150 calls and 16900 -17050 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 4.55% and reached 15.83. The 50 share Nifty up by 117.15 points or 0.69% to settle at 17,072.60.
Nifty December 2021 futures closed at 17059.00 (LTP) on Thursday, at a discount of 13.60 points over spot closing of 17072.60, while Nifty January 2022 futures ended at 17114.70 (LTP), at a premium of 42.10 points over spot closing. Nifty December futures saw an addition of 4,660 units, taking the total outstanding open interest (Contracts) to 1,97,891 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 discount of 0.65 points at 2364.35 (LTP) compared with spot closing of 2365.00. The numbers of contracts traded were 27,516 (Provisional).
Infosys December 2021 futures traded at a premium of 2.70 points at 1858.85 (LTP) compared with spot closing of 1856.15. The numbers of contracts traded were 25,548 (Provisional).
Tata Steel December 2021 futures traded at a premium of 0.60 points at 1127.05 (LTP) compared with spot closing of 1126.45. The numbers of contracts traded were 19,680 (Provisional).
ICICI Bank December 2021 futures traded at a premium of 1.70 points at 730.50 (LTP) compared with spot closing of 728.80. The numbers of contracts traded were 17,041 (Provisional).
TCS December 2021 futures traded at a premium of 10.60 points at 3671.25 (LTP) compared with spot closing of 3660.65. The numbers of contracts traded were 16,915 (Provisional).
Among, Nifty calls, 17100 SP from the December month expiry was the most active call with an addition of 14,541 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with an addition of 50,008 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,19,730 units) and that for Puts was at 17000 SP (1,14,551 units). The respective Support and Resistance levels of Nifty are: Resistance 17,122.32 -- Pivot Point 17,068.93 -- Support -- 17,019.22.
The Nifty Put Call Ratio (PCR) finally stood at (0.97) for December month contract. The top five scrips with highest PCR on Escorts (1.15), Asian Paints (0.95), Wipro (0.88), Infosys (0.88) and Pidilite Industries (0.79).
Among most active underlying, ICICI Bank witnessed a contraction of 22 units of Open Interest in the December month futures contract, Reliance Industries witnessed an addition of 4,632 units of Open Interest in the December month futures contract, Infosys witnessed an addition of 2,644 units of Open Interest in the December month futures contract, Bajaj Finance witnessed an addition of 597 units of Open Interest in the December month futures contract and HDFC Bank witnessed an addition of 150 units of Open Interest in the December month futures contract (Provisional).
