Nifty ended last trading day of week on lower note due to selling pressure in banking, consumer durables, Media and metal stocks. Market made negative start, as the government data showed that retail inflation for farm and rural workers rose to 4.78 percent and 5.03 percent respectively in December 2021, mainly due to higher price of certain food items. Further, market extended its losses, with domestic rating agency ICRA’s report stated that the recent surge in fresh Covid infections as well as subsequent localised lockdowns emanating from Omicron spread are likely to shave off around 100 bps of growth in toll collections in fiscal year 2021-22. In late afternoon session, market touch its intraday low point, as private report stated that institutional investments in real estate fell 81 per cent at $670 million during the December quarter because of lower inflow in office assets. However, in last leg of trade market trimmed some of their losses, as trades found some support with India Ratings and Research’s statement that the country’s economy is likely to grow at 7.6 per cent year-on-year in 2022-23.
Most of the sectoral indices ended in red except FMCG. The top gainers from the F&O segment were Bajaj Auto, Biocon and HUL. On the other hand, the top losers were Balrampur Chini Mills, LTTS and Polycab India. 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 6.16% and reached 18.89. The 50 share Nifty down by 139.85 points or 0.79% to settle at 17,617.15.
Nifty January 2022 futures closed at 17647.90 (LTP) on Friday, at a premium of 30.75 points over spot closing of 17617.15, while Nifty February 2022 futures ended at 17693.00 (LTP), at a premium of 75.85 points over spot closing. Nifty January futures saw an addition of 13,717 units, taking the total outstanding open interest (Contracts) to 1,86,132 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 1.95 points at 2478.00 (LTP) compared with spot closing of 2476.05. The numbers of contracts traded were 45,848 (Provisional).
Infosys January 2022 futures traded at a discount of 3.15 points at 1784.85 (LTP) compared with spot closing of 1788.00. The numbers of contracts traded were 44,070 (Provisional).
Tata Steel January 2022 futures traded at a premium of 0.90 points at 1170.00 (LTP) compared with spot closing of 1169.10. The numbers of contracts traded were 42,079 (Provisional).
TCS January 2022 futures traded at a discount of 3.95 points at 3836.05 (LTP) compared with spot closing of 3840.00. The numbers of contracts traded were 26,556 (Provisional).
Hindalco Industries January 2022 futures traded at a discount of 0.45 points at 507.15 (LTP) compared with spot closing of 507.60. The numbers of contracts traded were 25,530 (Provisional).
Among, Nifty calls, 18000 SP from the January month expiry was the most active call with an addition of 35,337 units open interests. Among Nifty puts, 17600 SP from the January month expiry was the most active put with an addition of 33,817 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,88,847 units) and that for Puts was at 17000 SP (1,14,381 units). The respective Support and Resistance levels of Nifty are: Resistance 17,721.22 -- Pivot Point 17,603.53 -- Support -- 17,499.47.
The Nifty Put Call Ratio (PCR) finally stood at (0.72) for January month contract. The top five scrips with highest PCR on PVR (1.12), Indigo (1.08), Escorts (0.93), AU Small Finance Bank (0.87) and Indian Hotels Company (0.84).
Among most active underlying, Reliance Industries witnessed an addition of 6,952 units of Open Interest in the January month futures contract, ICICI Bank witnessed an addition of 437 units of Open Interest in the January month futures contract, Infosys witnessed an addition of 17,411 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 1,844 units of Open Interest in the January month futures contract and Tata Steel witnessed an addition of 3,434 units of Open Interest in the January month futures contract (provisional).
