Market breadth turns negative

Key equity benchmarks were trading in a narrow band near the flat line in early afternoon trade. The Nifty 50 index traded above 12,250 level. At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 28.07 points or 0.07% at 41,653.47. The Nifty 50 index trading flat at 12,272.35.

In the broader market, the S&P BSE Mid-Cap index was up 0.2% and the S&P BSE Small-Cap index was up 0.16%.

The market breadth turned negative. On the BSE, 1058 shares rose and 1105 shares fell. A total of 187 shares were unchanged. In Nifty 50 index, 37 stocks advanced and 13 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.39% to 12.03. The Nifty December 2019 futures were trading at 12,277.45, a premium of 7.5 points compared with the spot at 12,269.95.

On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 36.34 lakh contracts at the 12,300 strike price. Significant call writing was witnessed at 12,300 strike price, which added 11.66 lakh contracts. No significant call unwinding was observed.

Maximum put OI of 46.19 lakh contracts was seen at 12,200 strike price. Significant put writing was seen at the 12,250 strike price, which added 9.81 lakh contracts. Maximum Put unwinding was witnessed at 11,700 strike price, which shed 2.07 lakh contracts.

The option chain indicates that Nifty will stay between 12,200 and 12,300 in December expiry. The December contracts expire on Thursday, 26 December 2019.

Buzzing Index:

Auto stocks continued their winning run after taking a day's breather. The Nifty Auto index was up 0.71% at 8,191.

JBM Auto (up 5.68%), TVS Motors Company (up 2.1%), Hero MotoCorp (up 1.66%), Maruti Suzuki India (up 1.19%), Atul Auto (up 0.72%), Bajaj Auto (up 0.55%), SML Isuzu (up 0.5%), Ashok Leyland (up 0.19%), Tata Motors (up 0.03%) and Eicher Motors (up 0.1%) were top gainers in auto segment.

Stocks in Spotlight:

Emami rose 2.23% to Rs 308.05 after media house reported that UltraTech Cement has emerged as the front-runner to buy the cement business of Emami Group in an all-cash deal worth Rs 6,500-7,000 crore.

Reliance Infrastructure hit an upper-circuit limit of 5% at Rs 24.25 after the company said it won major arbitration award of Rs 1,250 crore against Damodar Valley Corporation.

Politics:

Jharkhand Assembly election results will be declared today as counting votes began from 8 am. BJP government went solo this time. The opposition alliance of the Jharkhand Mukti Morcha (JMM), the Congress and the Rashtriya Janata Dal (RJD) seems to be having an edge in the 81-member Assembly.

While the BJP is ahead on 29 seats, JMM is leading in 25 seats. Congress is ahead on 12 seats and RJD is leading in 5 seats. The majority mark for winning the election is 41 seats.

Legislative Assembly elections were held in Jharkhand from 30 November to 20 December 2019 to elect the 81 members of Legislative Assembly.

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