Indian equity benchmark -- Nifty -- ended in red terrain for third straight day amid fears coming from a sharp rise in cases of coronavirus in many countries. Market made slightly positive start, as traders got support with former Niti Aayog vice chairman Arvind Panagariya’s statement that the Indian economy is likely to grow at over 7 per cent in the current fiscal year, and observed that the growth rate should sustain next year too provided the forthcoming Budget does not have any negative surprises. However, market enter into negative terrain as sentiments largely remain dampened with Indian health minister Mansukh Mandaviya’s statement that COVID is not over yet. He said 'I have directed all concerned to be alert and strengthen surveillance'. Reports showing that foreign institutional investors (FIIs) sold shares worth Rs 1,119.11 crore on December 21, too dampened sentiments.
Market trimmed some of its losses in last leg of session, but the recovery was not enough to take Nifty into green as traders remained on the sidelines as Reserve Bank of India (RBI) will release the minutes of its latest monetary policy meeting held earlier this week. Adding more worries, a CAG audit report on Direct Taxes drew attention to 57 instances of significant errors and irregularities in corporation tax assessments of high value cases involving tax effects of Rs 6,304.56 crore.
Most of the sectorial indices ended in red. The top gainers from the F&O segment were Lupin, REC and Jubilant FoodWorks. On the other hand, the top losers were Gujarat Gas, IDFC First Bank and Bandhan Bank. In the index option segment, maximum OI continues to be seen in the 18900 -19100 calls and 17900 -18100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 2.40% and reached 15.19. The 50 share Nifty down by 71.75 points or 0.39% to settle at 18,127.35.
Nifty December 2022 futures closed at 18160.60 (LTP) on Thursday, at a premium of 33.25 points over spot closing of 18127.35, while Nifty January 2023 futures ended at 18265.00 (LTP), at a premium of 137.65 points over spot closing. Nifty December futures saw an addition of 1,517 units, taking the total open interest (Contracts) to 2,05,639 units. The near month derivatives contract will expire on December 29, 2022. (Provisional)
From the most active contracts, Reliance Industries December 2022 futures traded at a premium of 8.80 points at 2585.80 (LTP) compared with spot closing of 2577.00. The numbers of contracts traded were 23,252. (Provisional)
Adani Enterprises December 2022 futures traded at a premium of 15.55 points at 3871.55 (LTP) compared with spot closing of 3856.00. The numbers of contracts traded were 23,155. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 2.25 points at 1615.10 (LTP) compared with spot closing of 1612.85. The numbers of contracts traded were 21,878. (Provisional)
Infosys December 2022 futures traded at a premium of 7.25 points at 1525.25 (LTP) compared with spot closing of 1518.00. The numbers of contracts traded were 20,406. (Provisional)
Bandhan Bank December 2022 futures traded at a premium of 0.25 points at 231.45 (LTP) compared with spot closing of 231.20. The numbers of contracts traded were 18,930. (Provisional)
Among, Nifty calls, 18200 SP from the December month expiry was the most active call with an addition of 88,367 units open interests. Among Nifty puts, 18000 SP from the December month expiry was the most active put with an addition of 19,729 units open interests. The maximum OI outstanding for Calls was at 19000 SP (1,69,943 units) and that for Puts was at 18000 SP (19,729 units). The respective Support and Resistance levels of Nifty are: Resistance 18274.53 -- Pivot Point 18171.56 -- Support -- 18024.38.
The Nifty Put Call Ratio (PCR) finally stood at (0.76) for December month contract. The top five scrips with highest PCR on Max Financial Services (0.91), Aditya Birla Capital (0.87), Interglobe Aviation (0.86), JSW Steel (0.83) and Power Finance Corporation (0.81).
Among most active underlying, Adani Enterprises witnessed an addition of 36 units of Open Interest in the December month futures and HDFC Bank witnessed an addition of 435 units of Open Interest in the December month futures.
