China hits neighbours hard, Nifty no exception

Post Market Commentary

Nifty opened in red on the first day of the week and scored day's high at 7937 in the early trading hour, as weak cues from the Chinese market dampened spirit of the Asian markets and Indian markets were no exception. Chinese PMI data has declined to 48.2 in December in comparison to 48.6 in November while Shanghai Composite declined by 7.36%. Nifty index started to lose its strength further later in the day and continuously lowered itself. Tata Motors, Idea, and Bank of Baroda were the top losers of Monday. At the end of the day, Nifty closed near day's low with loss of 171 points at 7791 .     

The breadth for Nifty index turned positive to negative in Mondays trading session, as the advance decline ratio ended on the negative side. Out of 50 stocks only 3 stocks closed in  green, whereas 46 stocks closed in red and one stock remained unchanged. 

Top 5 Nifty Gainers: TATA STEEL was the top gainer gaining 0.62% followed by ASIANPAINT and HCLTECH.

Top 5 Nifty Losers: TATA MOTORS was the top loser with a loss of 6.41% followed by IDEA, BANKBARODA, HINDALCO and PNB.

In Monday's trading session all sectors closed in red while PSU Banks were top losers losing 3.47%.  

Asian markets quoted in red; China's Shanghai Composite was down by 7.36% today, Hong Kong's Hang-Seng was down by 2.75% , while Japan's Nikkei was also down by 3.16% today.

The European indices traded in red, London’s  FTSE 100 index was down by 1.96% and the German DAX was down by 3.44 and France CAC was down by 2.31%.
 

Derivative Analysis

The Nifty January futures open interest has increases by 8.15%. Bank Nifty January futures open interest has increases by 21.48%. Nifty market closed at 7,791.30 levels & Bank Nifty closed at 16,599.15 levels.

The Nifty January future closed at a premium of 16.45 point.

The February series closed at a premium of 38.7 points.

The Implied Volatility of at the money options has rise by 18.25%.  

Nifty PCR-OI has sustain at 1.00 levels.

Interpretation: On the basis of above data,its observed that 7700 may act as strong Support & 8200 may act as strong resistance for Nifty Index. Further moment for the index would be on the positive side.