Markets close lower; Banking stocks outperform

Markets witnessed a volatile day of trade with the benchmark index Nifty witnessing across the board selling pressure during the closing part of the trade.

Bank Nifty outperformed the Nifty index by 0.6% led by a upmove in the stocks like SBI & Axis Bank. Share of IDFC Twins were among the top outperformers, closing with more than 10% gains along with an addition of fresh long positions during the trade.

Midcap 100 index closed higher, up 1.5%.

Market breadth ended in the favour of the advances with the advance/decline ratio closing at 2:1x. Nifty index saw an unwinding of long positions during the day.

On the options front (January 07, 2020 expiry), across the board option writing was seen in call option strikes as Nifty trended lower. India Vix index closed at 20.5, down ~2%.