Ups and downs of Nifty did not make it bright and shiny for investors

Post Market Commentary

Though the morning of Wednesday looked bright and sunny and Nifty too responded positively by opening with a green mark to score later 7944 bringing in much hope among investors, second half of the day, it drifted lower and tested 7925 mark. During the last few minutes in today's session, Nifty continued to lost its strength and fallen further. Heavyweights like Infosys, Reliance Industries and TCS slipped from the day's higher levels. The day ended with Nifty shredding 32 points at 7896, just below the coveted and crucial mark of 7900.  

Breadth for the Nifty index has remained  negative in Wednesday's trading session, as the advance decline ratio ended on the negative side. Out of 50 stocks, 21 stocks closed in green, rest closed in red. 

Top 5 Nifty Gainers: ZEEL was the top gainer with 2.92%  gain reported and closely followed by TATASTEEL, INDUSINDBK, TATAPOWER and TECHM

Top 5 Nifty Losers: PNB was the top loser with a loss of 1.75% followed by HCLTECH, BPCL, INFY and TCS.

In Wednesday's trading session, media stocks gained by 1.88% whereas PSU banks were top losers shredding by 1.05%.  

The Asian markets quoted in mixed; China's Shanghai Composite was up by 0.25% , Hong Kong's Hang-Seng was down by 0.54% , while Japan's Nikkei was up by 0.27% on the second last of the year passing by.

The European indices traded in red, London’s FTSE 100 index was down by 0.61% and the German DAX was down by 0.51% and France CAC was up by 0.33%.


Derivative Analysis

The Nifty December futures open interest has decline by 1.83%. Bank Nifty December futures open interest has decline by 4.75%. Nifty market closed at 7,896.25 levels & Bank Nifty closed at 16,917.90 levels.

The Nifty December future closed at a premium of 8.75 point.

The January series closed at a premium of 34.6 points.

The Implied Volatility of at the money options has increases by 0.80%.  

Nifty PCR-OI has sustain at 0.99 levels.

Interpretation: On the basis of above data,its observed that 7800 may act as strong Support & 8000 may act as strong resistance for Nifty Index. Further moment for the index would be on the positive side.