Nifty ends higher on last session of CY 2021

The local benchmark -- Nifty – finished last day of the year above its crucial 17350 mark led by gains in metal and auto shares, even though concerns about the Omicron variant of coronavirus kept investors cautious globally. Market made positive start, as India Ratings and Research (Ind-Ra) said that higher tax and non-tax revenue collections this fiscal are expected to more than offset the shortfall in disinvestment revenue, leading to the fiscal deficit coming in at 6.6 per cent of GDP in FY22, or 20 basis points lower than the budgeted target. Further, market extended its gains, as India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities. Exports of agricultural and processed food products under Agricultural and Processed Food Products Export Development Authority (APEDA) basket rose to $20,674 million (Rs 15,30,50 crore) during 2020-21, from $17,321 million (Rs 83,484 crore) in 2011-12. Index maintained its healthy gains till the end and ended with the gains of above half a percent. 

All the sectoral indices ended in green. The top gainers from the F&O segment were IDFC, Vodafone Idea and Hindalco Industries. On the other hand, the top losers were GMR Infrastructure, NTPC and RBL Bank. In the index option segment, maximum OI continues to be seen in the 17850 -18200 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 2.06% and reached 16.22. The 50 share Nifty up by 150.10 points or 0.87% to settle at 17,354.05.

Nifty January 2022 futures closed at 17420.00 (LTP) on Friday, at a premium of 65.95 points over spot closing of 17354.05, while Nifty February 2022 futures ended at 17470.90 (LTP), at a premium of 116.85 points over spot closing. Nifty January futures saw an addition of 19,171 units, taking the total outstanding open interest (OI) to 2,11,255 units. The near month derivatives contract will expire on January 27, 2022 (Provisional).

From the most active contracts, Reliance Industries January 2022 futures traded at a premium of 13.00 points at 2381.50 (LTP) compared with spot closing of 2368.50. The numbers of contracts traded were 25,892 (Provisional).

Infosys January 2022 futures traded at a premium of 9.70 points at 1902.70 (LTP) compared with spot closing of 1893.00. The numbers of contracts traded were 19,550 (Provisional).

RBL Bank January 2022 futures traded at a premium of 0.30 points at 128.00 (LTP) compared with spot closing of 127.70. The numbers of contracts traded were 17,612 (Provisional).

Hindalco Industries January 2022 futures traded at a premium of 1.85 points at 476.60 (LTP) compared with spot closing of 474.75. The numbers of contracts traded were 16,134 (Provisional).

Tata Steel January 2022 futures traded at a premium of 5.25 points at 1117.65 (LTP) compared with spot closing of 1112.40. The numbers of contracts traded were 14,682 (Provisional).

Among, Nifty calls, 17500 SP from the January month expiry was the most active call with an addition of 2,335 units open interests. Among Nifty puts, 17300 SP from the January month expiry was the most active put with an addition of 6,766 units open interests. The maximum OI outstanding for Calls was at 18000 SP (39,574 units) and that for Puts was at 17000 SP (64,376 units). The respective Support and Resistance levels of Nifty are: Resistance 17,423.73 -- Pivot Point 17,331.12 -- Support -- 17,261.43.

The Nifty Put Call Ratio (PCR) finally stood at (1.57) for January month contract. The top five scrips with highest PCR on PVR (1.32), Dalmia Bharat (1.19), IOC (1.19), PEL (0.99) and Motherson Sumi Systems (0.99).

Among most active underlying, Reliance Industries witnessed an addition of 2,801 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 1,415 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 5,470 units of Open Interest in the January month futures contract, ICICI Bank witnessed an addition of 959 units of Open Interest in the January month futures contract and Vodafone Idea witnessed an addition of 3,459 units of Open Interest in the January month futures contract (Provisional).