S&P CNX -- Nifty-- witnessed drastic fall on first day of trading week, as Media, Metals, Realty and IT stocks drag the most. Broader markets also fell, with the Nifty Midcap 100 index plunging by 3.86% and its smallcap 100 counterpart plummeting 4.78%. Market made negative start, as former RBI Governor Raghuram Rajan said the Indian economy has some bright spots and a number of very dark stains and the government should target its spending carefully so that there are no huge deficits. Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic. Further, market extended its losses, as continued selling by foreign institutional investors (FIIs) weighted on domestic markets. As per provisional data available on the NSE, FIIs net sold shares worth Rs 3,148.58 crore.
Index continued its free fall till the end, as traders were cautious with the Ministry of Statistics and Programme Implementation in its latest report has said that as many as 445 infrastructure projects, each entailing investment of Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.4 lakh crore. It said reasons for time overruns as reported by various project implementing agencies include delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages. Finally, Nifty ended the session with the cut of above two and half percent.
All the sectoral indices ended in red. The top gainers from the F&O segment were Bandhan Bank, Cipla and Lupin. On the other hand, the top losers were Godrej Properties, Hindustan Copper and Astral. 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 20.84% and reached 22.83. The 50 share Nifty down by 468.05 points or 2.66% to settle at 17,149.10.
Nifty January 2022 futures closed at 17102.30 (LTP) on Monday, at a discount of 46.80 points over spot closing of 17149.10, while Nifty February 2022 futures ended at 17145.00 (LTP), at a discount of 4.10 points over spot closing. Nifty January futures saw an addition of 20,450 units, taking the total outstanding open interest (contracts) to 1,87,701 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 0.95 points at 2380.85 (LTP) compared with spot closing of 2379.90. The numbers of contracts traded were 72,011 (Provisional).
Infosys January 2022 futures traded at a discount of 3.40 points at 1730.60 (LTP) compared with spot closing of 1734.00. The numbers of contracts traded were 59,964 (Provisional).
ICICI Bank January 2022 futures traded at a discount of 0.10 points at 791.90 (LTP) compared with spot closing of 792.00. The numbers of contracts traded were 59,255 (Provisional).
Tata Steel January 2022 futures traded at a discount of 2.80 points at 1097.70 (LTP) compared with spot closing of 1100.50. The numbers of contracts traded were 51,929 (Provisional).
Bharti Airtel January 2022 futures traded at a discount of 1.55 points at 686.10 (LTP) compared with spot closing of 687.65. The numbers of contracts traded were 31,978 (Provisional).
Among, Nifty calls, 17500 SP from the January month expiry was the most active call with an addition of 1,43,816 units open interests. Among Nifty puts, 17000 SP from the January month expiry was the most active put with a contraction of 10,059 units open interests. The maximum OI outstanding for Calls was at 18000 SP (1,97,164 units) and that for Puts was at 17000 SP (1,03,123 units). The respective Support and Resistance levels of Nifty are: Resistance 17,499.72 -- Pivot Point 17,248.78 -- Support -- 16,898.17.
The Nifty Put Call Ratio (PCR) finally stood at (0.53) for January month contract. The top five scrips with highest PCR on PVR (1.17), Escorts (0.96), Indigo (0.88), Bandhan Bank (0.86) and AU Small Finance Bank (0.85).
Among most active underlying, ICICI Bank witnessed an addition of 6,816 units of Open Interest in the January month futures contract, Reliance Industries witnessed an addition of 10,724 units of Open Interest in the January month futures contract, Infosys witnessed a contraction of 197 units of Open Interest in the January month futures contract, Tata Motors witnessed an addition of 704 units of Open Interest in the January month futures contract and Bajaj Finance witnessed an addition of 573 units of Open Interest in the January month futures contract (provisional).
