News Analysis

Nifty settles lackluster day below 12,000 mark

Updated on 03 December 2019 05:40 PM

The CNX Nifty snapped Tuesday’s trading session with a cut of around half a percent, breaching its crucial 12,000 mark on the back of weak global cues. Market made a caution start and continued to trade in red for the whole trading session. Sentiments remained dampened, as CRISIL sharply cut India’s Gross domestic product (GDP) growth forecast to 5.1% for the current financial year (FY20) from an earlier estimate of 6.3%. Market weakened further, as rating agency, ICRA stated that India Inc delivered an expectedly weak performance during the second quarter of the current financial year (Q2 FY2020), reeling under the impact of continued weakness in consumer sentiments and a general slowdown in the economy. However, in the last leg of the trade, market managed to trim some of its losses, as traders found some solace with Commerce and Industry Minister Piyush Goyal’s statement that the value of India's overall exports rose about 8% to $538.07 billion during 2018-19.


All the sectoral indices ended in green on the NSE except Realty and IT. The top gainers from the F&O segment Max Financial Services, Bata India and Bajaj Auto. On the other hand, the top losers were Vodafone Idea, Yes Bank and Jindal Steel & Power. In the index option segment, maximum OI continues to be seen in the 12200- 12,700 calls and 11,700 - 12,200 puts indicating this is the trading range expectation.




India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.35% and reached 13.86. The 50 share Nifty was down by 54.00 points or 0.45% to settle at 11,994.20.

Nifty December 2019 futures closed at 12,050.70 (LTP) on Tuesday, at a premium of 56.50 points over spot closing of 11,994.20, while Nifty January 2019 futures ended at 12,095.00 (LTP), at a premium of 100.80 points over spot closing. Nifty December futures saw an addition of 0.95 million (mn) units, taking the total outstanding open interest (OI) to 14.54 mn units. The near month derivatives contract will expire on December 26, 2019 (Provisional).

From the most active contracts, Yes Bank December 2019 futures traded at a discount of 2.60 points at 56.60 (LTP) compared with spot closing of 59.20. The numbers of contracts traded were 1,04,312 (Provisional).

Indiabulls Housing Finance December 2019 futures traded at a discount of 1.10 points at 290.80 (LTP) compared with spot closing of 291.90. The numbers of contracts traded were 50,367 (Provisional).

Zee Entertainment December 2019 futures traded at a premium of 1.60 points at 281.60 (LTP) compared with spot closing of 280.00. The numbers of contracts traded were 24,990 (Provisional).

SBIN December 2019 futures traded at a premium of 1.90 points at 338.40 (LTP) compared with spot closing of 336.50. The numbers of contracts traded were 22,940 (Provisional).

RBL Bank December 2019 futures traded at a premium of 0.50 points at 367.00 (LTP) compared with spot closing of 366.50. The numbers of contracts traded were 22,633 (Provisional).




Among, Nifty calls, 12,100 SP from the December month expiry was the most active call with an addition of 0.19 million open interests. Among Nifty puts, 12,000 from the December month expiry was the most active put with an addition of 0.10 units open interests. The maximum OI outstanding for Calls was at 12500 SP (1.88 mn) and that for Puts was at 12000 SP (3.22 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,056.40 -- Pivot Point 12,006.40 -- Support -- 11,944.20.

The Nifty Put Call Ratio (PCR) finally stood at 1.14 for December month contract. The top five scrips with highest PCR on Hexaware Technologies (1.73), Tata Motors - DVR (1.23), Shriram Transport Finance Company (1.14), Justdail (1.12) and Dabur India (1.07).

Among most active underlying, State Bank of India witnessed an addition of 3.74 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing an addition of 0.53 million units of Open Interest in the December month contract, Yes Bank witnessed an addition of 39.19 million units of Open Interest in the December month contract, Bharti Airtel witnessed an addition of 2.56 million units of Open Interest in the December month contract and ICICI Bank witnessed an addition of 2.00 million units of Open Interest in the December month future contract  (Provisional).