NSE gauge -- Nifty50 -- witnessed considerable losses on Wednesday, sliding below its crucial 17950 levels during the day. India VIX closed at 17.82 levels. Shares of Vodafone Idea, JP Power, Alok Industries, Suzlon Energy and YES Bank were among the most traded shares on the NSE. Market made negative start with a private report that the third wave of the COVID-19 pandemic is likely to peak in India on January 23 when the country will record nearly 7.2 lakh cases per day. Further, market extended its opening losses, as the SBI Business Activity Index declined to 101 as on January 17 from 109 in the week ended January 10. The latest reading, even as the country is in the midst of the third wave of the pandemic, is the lowest since November 15. Market continued its weak trade till the end, as Crisil Ratings said disruptions due to the third COVID wave could shave off as much as 200 basis points from the growth in assets under management of housing finance companies in the current and next financial years. Finally, Nifty ended the session with the cut of over half a percent.
Most of the sectoral indices ended in red except Auto, Media and Metal. The top gainers from the F&O segment were Biocon, Tata Power and Bank of Baroda. On the other hand, the top losers were Icici Prudential Life Insurance Comp, Info Edge (India) and LTTS. In the index option segment, maximum OI continues to be seen in the 17900 -18200 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 0.21% and reached 17.82. The 50 share Nifty down by 174.65 points or 0.96% to settle at 17,938.40.
Nifty January 2022 futures closed at 17975.50 (LTP) on Wednesday, at a premium of 37.10 points over spot closing of 17938.40, while Nifty February 2022 futures ended at 18028.00 (LTP), at a premium of 89.60 points over spot closing. Nifty January futures saw an addition of 27 units, taking the total open interest (Contracts) to 1,94,722 units. The near month derivatives contract will expire on January 27, 2022 (Provisional).
From the most active contracts, Bajaj Finance January 2022 futures traded at a premium of 30.00 points at 7620.00 (LTP) compared with spot closing of 7590.00. The numbers of contracts traded were 53,603 (Provisional).
Adani Ports January 2022 futures traded at a premium of 1.30 points at 744.85 (LTP) compared with spot closing of 743.55. The numbers of contracts traded were 44,937 (Provisional).
Tata Steel January 2022 futures traded at a premium of 2.55 points at 1210.55 (LTP) compared with spot closing of 1208.00. The numbers of contracts traded were 24,993 (Provisional).
Infosys January 2022 futures traded at a premium of 7.25 points at 1872.25 (LTP) compared with spot closing of 1865.00. The numbers of contracts traded were 24,606 (Provisional).
Reliance Industries January 2022 futures traded at a premium of 2.40 points at 2523.80 (LTP) compared with spot closing of 2521.40. The numbers of contracts traded were 22,335 (Provisional).
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with an addition of 30,925 units open interests. Among Nifty puts, 17900 SP from the January month expiry was the most active put with an addition of 9,977 units open interests. The maximum OI outstanding for Calls was at 18000 SP (63,043 units) and that for Puts was at 17000 SP (68,522 units). The respective Support and Resistance levels of Nifty are: Resistance 18,083.43 -- Pivot Point 17,984.17 -- Support -- 17,839.13.
The Nifty Put Call Ratio (PCR) finally stood at (1.37) for January month contract. The top five scrips with highest PCR on Indigo (1.18), PVR (1.17), Escorts (0.92), AU Small Finance Bank (0.87) and Bandhan Bank (0.85).
Among most active underlying, Bajaj Finance witnessed an addition of 3,121 units of Open Interest in the January month futures contract, Adani Ports witnessed a contraction of 3,700 units of Open Interest in the January month futures contract, ICICI Bank witnessed an addition of 833 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 1,195 units of Open Interest in the January month futures contract and Vedanta witnessed an addition of 1,714 units of Open Interest in the January month futures contract (provisional).
