CNX S&P – Nifty ended the day’s trade below its crucial 18150 levels on Tuesday. Leading the losses were Tata Consumer, Maruti, Ultratech Cement, Eicher Motors, and Tech Mahindra. Market made slightly positive start, as traders took support with RBI article stating that India’s overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects. However, soon market slipped into negative territory, as the International Labour Organization said that the global job market will take longer to recover than previously thought, with unemployment levels set to remain above pre-COVID-19 levels until at least 2023 due to uncertainty about the pandemic's course and duration.
Further, market continued its weak trade after private report stated that daily e-way bill generation under the goods and services tax (GST) system stood at 21.1 lakh for the week ended January 16, 5.4% lower than in the previous week, reflecting a moderation in goods dispatches. Selling got intensified during last leg of trade, as domestic sentiments remained downbeat with Crisil Ratings’ report stating that securitisation volume growth slowed to around 8 percent on year to Rs 29,000 crore in the quarter ended December 31, 2021 (Q3FY22), on higher risk aversion amid the third wave of COVID-19. Finally, Nifty ended the session with the cut of above a percent.
All the sectoral indices ended in red. The top gainers from the F&O segment were Cholamandalam Investment and Fin Co, Axis Bank and Crompton Greaves Consumer Electricls. On the other hand, the top losers were Apollo Hospitals Enterprise, Rain Industries and Ambuja Cements. In the index option segment, maximum OI continues to be seen in the 18000 -18500 calls and 16900 -17200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 6.05% and reached 17.78. The 50 share Nifty down by 195.05 points or 1.07% to settle at 18,113.05.Nifty January 2022 futures closed at 18113.70 (LTP) on Tuesday, at a premium of 0.65 points over spot closing of 18113.05, while Nifty February 2022 futures ended at 18150.00 (LTP), at a premium of 36.95 points over spot closing. Nifty January futures saw an addition of 5,349 units, taking the total open interest (contracts) to 2,08,946 units. The near month derivatives contract will expire on January 27, 2022 (Provisional).
From the most active contracts, Axis Bank January 2022 futures traded at a premium of 1.55 points at 726.90 (LTP) compared with spot closing of 725.35. The numbers of contracts traded were 31,459 (Provisional).
HDFC Bank January 2022 futures traded at a premium of 3.55 points at 1531.65 (LTP) compared with spot closing of 1528.10. The numbers of contracts traded were 30,875 (Provisional).
Reliance Industries January 2022 futures traded at a discount of 2.00 points at 2521.00 (LTP) compared with spot closing of 2523.00. The numbers of contracts traded were 30,537 (Provisional).
Tata Steel January 2022 futures traded at a discount of 0.30 points at 1196.65 (LTP) compared with spot closing of 1196.95. The numbers of contracts traded were 24,918 (Provisional).
ICICI Bank January 2022 futures traded at a discount of 0.50 points at 822.50 (LTP) compared with spot closing of 823.00. The numbers of contracts traded were 23,743 (Provisional).
Among, Nifty calls, 18300 SP from the January month expiry was the most active call with an addition of 12,578 units open interests. Among Nifty puts, 18000 SP from the January month expiry was the most active put with a contraction of 402 units open interests. The maximum OI outstanding for Calls was at 18300 SP (402 units) and that for Puts was at 17000 SP (61,719 units). The respective Support and Resistance levels of Nifty are: Resistance 18,280.70 -- Pivot Point 18,183.30 -- Support -- 18,015.65.
The Nifty Put Call Ratio (PCR) finally stood at (1.37) for January month contract. The top five scrips with highest PCR on PVR (1.20), Indigo (1.14), Escorts (0.90), AU Small Finance Bank (0.86) and Indian Hotels Company (0.85).
Among most active underlying, Axis Bank witnessed an addition of 3,404 units of Open Interest in the January month futures contract, ICICI Bank witnessed an addition of 730 units of Open Interest in the January month futures contract, HDFC Bank witnessed a contraction of 1,374 units of Open Interest in the January month futures contract, Tata Motors witnessed a contraction of 27 units of Open Interest in the January month futures contract and Reliance Industries witnessed an addition of 1,115 units of Open Interest in the January month futures contract (Provisional).
