Indian equity benchmark -- Nifty -- ended with notable gains on Monday’s trading session. The start of the day was on a lower note, as several states such as Delhi, Karnataka, and Maharashtra enforced new restrictions in view of rising Covid-19 cases. Markets remained volatile during the morning deals, as traders were concerned with a private report as it has penciled in an 8.2 per cent GDP growth next fiscal, with more downside risks to the projection, warning that the New Year will be riskier than the previous two in terms of growth, inflation and the perils of monetary policy normalisation on consumption demand in particular, along with other external risks.
In the afternoon deals, index entered into green terrain, as a member of the Monetary Policy Committee (MPC) of the Reserve Bank, Jayanth R Varma expressed hope that in a few quarters from now, capital investment would begin to pick up even in the old economy, and said the next fiscal year is also expected to witness a decent growth. Finally, index ended near day’s high point, amid reports that Indian companies have mopped up more than Rs 9 lakh crore through equity and debt routes in 2021 to meet their renewed thirst for business expansion in a buoyant stock market brimming with liquidity and helped by recovering macroeconomic indicators after pandemic-ravaged first few months.
All the sectoral indices ended in green except Media, Metal and FMCG. The top gainers from the F&O segment were GMR Infra, Navin Fluorine International and Shriram Transport Finance Company. On the other hand, the top losers were RBL Bank, Zee Entertainment Enterprises and UBL. 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 increased by 6% and reached 17.11. The 50 share Nifty up by 82.50 points or 0.49% to settle at 17,086.25.
Nifty December 2021 futures closed at 17165.00 (LTP) on Monday, at a premium of 78.75 points over spot closing of 17086.25, while Nifty January 2022 futures ended at 17118.00 (LTP), at a premium of 31.75 points over spot closing. Nifty December futures saw an addition of 10,380 units, taking the open interest (OI) to 1,98,687 units. The near month derivatives contract will expire on December 30, 2021 (Provisional).
From the most active contracts, RBL Bank December 2021 futures traded at a premium of 0.05 points at 141.65 (LTP) compared with spot closing of 141.60. The numbers of contracts traded were 55,876 (Provisional).
Tata Steel December 2021 futures traded at a premium of 0.60 points at 1124.60 (LTP) compared with spot closing of 1124.00. The numbers of contracts traded were 37,154 (Provisional).
Reliance Industries December 2021 futures traded at a premium of 2.50 points at 2373.50 (LTP) compared with spot closing of 2371.00. The numbers of contracts traded were 29,791 (Provisional).
HDFC Bank December 2021 futures traded at a discount of 1.10 points at 1451.90 (LTP) compared with spot closing of 1453.00. The numbers of contracts traded were 23,170 (Provisional).
ICICI Bank December 2021 futures traded at a premium of 1.40 points at 737.90 (LTP) compared with spot closing of 736.50. The numbers of contracts traded were 21,400 (Provisional).
Among, Nifty calls, 17100 SP from the December month expiry was the most active call with an addition of 38,135 units open interests. Among Nifty puts, 17000 SP from the December month expiry was the most active put with an addition of 83,697 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,57,177 units) and that for Puts was at 17000 SP (1,94,297 units). The respective Support and Resistance levels of Nifty are: Resistance 17,187.80 -- Pivot Point 17,010.50 -- Support -- 16,908.95.
The Nifty Put Call Ratio (PCR) finally stood at (1.16) for December month contract. The top five scrips with highest PCR on Escorts (1.15), Asian Paints (1.07, Indigo (1.02), Infosys (0.94) and Godrej Consumer Products (0.92).
Among most active underlying, Zee Entertainment Enterprises witnessed an addition of 600 units of Open Interest in the December month futures contract, ICICI Bank witnessed an addition of 1,173 units of Open Interest in the December month futures contract, HDFC Bank witnessed a contraction of 23 units of Open Interest in the December month futures contract, Tata Steel witnessed an addition of 1,406 units of Open Interest in the December month futures contract and Reliance Industries witnessed an addition of 9,247 units of Open Interest in the December month futures contract (Provisional).
