Extending losing streak for fourth straight session, Indian equity benchmark -- Nifty -- ended in red terrain on final day of week as traders were concern with increasing Covid -19 cases. Market started day in negative terrain as trader were worried with RBI Monetary Policy Committee member Jayanth R Varma’s statement that India’s economic growth is now 'extremely fragile' and needs all the support that it can get, as private consumption and capital investment are yet to pick up. Varma further said out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.
Market extended its losses in afternoon session and remained lower during the whole day of trade. Traders took note of a private report that amid a slowdown in demand for Indian goods in developed countries, India can focus on 18 products, such as insecticides, construction material, chemicals, and iron and steel, to boost its exports to developing countries where the country meets only 2.5 per cent of the demand at present. Selling intensified in last leg of trade and forced Nifty to end near intraday low.
Most of the sectorial indices ended in red. The top gainers from the F&O segment were Granules India, Cipla and Divi's Laboratories. On the other hand, the top losers were Ambuja Cements, Indiabulls Housing Finance and India Cements. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16900 -17100 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 6.40% and reached 16.16. The 50 share Nifty down by 320.55 points or 1.77% to settle at 17,806.80.
Nifty December 2022 futures closed at 17880.10 (LTP) on Friday, at a premium of 73.30 points over spot closing of 17806.80, while Nifty January 2023 futures ended at 17993.00 (LTP), at a premium of 186.20 points over spot closing. Nifty December futures saw an addition of 19,715 units, taking the total outstanding open interest (Contracts) to 2,19,302 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 3.40 points at 2511.90 (LTP) compared with spot closing of 2508.50. The numbers of contracts traded were 40,256. (Provisional)
HDFC Bank December 2022 futures traded at a premium of 3.10 points at 1602.10 (LTP) compared with spot closing of 1599.00. The numbers of contracts traded were 33,201. (Provisional)
Adani Enterprises December 2022 futures traded at a premium of 9.95 points at 3660.00 (LTP) compared with spot closing of 3650.05. The numbers of contracts traded were 31,610. (Provisional)
Adani Ports and Special Economic Zone December 2022 futures traded at a discount of 1.10 points at 795.30 (LTP) compared with spot closing of 796.40. The numbers of contracts traded were 26,075. (Provisional)
Infosys December 2022 futures traded at a premium of 6.30 points at 1504.60 (LTP) compared with spot closing of 1498.30. The numbers of contracts traded were 25,638. (Provisional)
Among, Nifty calls, 18000 SP from the December month expiry was the most active call with an addition of 1,69,226 units open interests. Among Nifty puts, 17800 SP from the December month expiry was the most active put with an addition of 35,812 units open interests. The maximum OI outstanding for Calls was at 18000 SP (35,812 units) and that for Puts was at 17000 SP (1,27,341 units). The respective Support and Resistance levels of Nifty are: Resistance 17978.33 -- Pivot Point 17878.91 -- Support -- 17707.38.
The Nifty Put Call Ratio (PCR) finally stood at (0.61) for December month contract. The top five scrips with highest PCR on Max Financial Services (0.83), Aditya Birla Capital (0.83), Power Finance Corporation (0.79), JSW Steel (0.78) and Hindustan Unilever (0.78).
Among most active underlying, Adani Enterprises witnessed a contraction of 609 units of Open Interest in the December month futures, HDFC Bank witnessed a contraction of 2,684 units of Open Interest in the December month futures, Reliance Industries witnessed an addition of 824 units of Open Interest in the December month futures, ICICI Bank witnessed a contraction of 340 units of Open Interest in the December month futures and Ambuja Cements witnessed a contraction of 340 units of Open Interest in the December month futures. (Provisional)
