Nifty makes triple digit gains coming out of slew of falls

Nifty making a smart bounce back surged on Thursday; the benchmark after a positive start continued its momentum ending with triple digit gains. There was broad based buying that emerged supported by positive global cues, after Fed concluding its two days meeting left interest rates at near-zero levels and said it can be patient in beginning to normalize the stance of monetary policy. Traders also took cues from the development from the domestic policy front after the cabinet approved a constitutional amendment bill to rationalise state and central indirect taxes into a harmonised goods and services tax (GST). All the sectoral gauges on the NSE ended with good gains, banks, infra and realty were the major gainers.

The top gainers from the F&O segment were jindal Steel, BHEL and bank of baroda, while the top losers were  Grasim, M&M and Ultra Tech Cements. Meanwhile, the Nifty volatility index, India VIX, declined by 13.75 per cent to 14.59, giving some respite to the investors.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 13.75% and reached 14.59. The 50-share CNX Nifty surged by 129.50 points or 161% to settle at 8,159.30. Nifty December 2014 futures closed at 8180.80 on Thursday at a premium of 21.50 points over spot closing of 8,159.30, while Nifty January 2014 futures ended at 8247.45 at a premium of 88.15 points over spot closing. Nifty December futures saw contraction of 1.92 million (mn) units, taking the total outstanding open interest (OI) to 22.04 mn units. The near month derivatives contract will expire on December 24, 2014.

From the most active contracts, State Bank of India December 2014 futures traded at a premium of 1.75 points at 308.75 compared with spot closing of 307.00. The number of contracts traded were 29,646.

ICICI Bank December 2014 futures traded at a discount of 0.15 points at 346.65 compared with spot closing of 346.80. The number of contracts traded were 17,612.

HDFC Bank December 2014 futures traded at a premium of 3.30 points at 937.30 compared with spot closing of 934.00. The number of contracts traded were 24,186.

Reliance Industries December 2014 futures traded at a premium of 2.25 points at 882.50 compared with spot closing of 880.25. The number of contracts traded were 33,275.

Tata Motors December 2014 futures traded at a premium of 2.30 points at 487.35 compared with spot closing of 485.05. The number of contracts traded were 14,404.

Among Nifty calls, 8100 SP from the December month expiry was the most active call with reduction of 0.89 million open interests. Among Nifty puts, 8,000 SP from the December month expiry was the most active put with a contraction of 0.93 million open interests. The maximum OI outstanding for Calls was at 8500 SP (5.44 mn) and that for Puts was at 8,000 SP (5.17 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8194.10--- Pivot Point 8139.50 --- Support --- 8104.70.

The Nifty Put Call Ratio (PCR) finally stood at 0.79 for December month contract. The top five scrips with highest PCR on OI were Sun TV (1.02), ZEEL (0.99), Eicher Motors (0.98), Kotak Bank (0.93) and Ranbaxy (0.83). 

Among most active underlying, State Bank of India witnessed a contraction of 0.13 million of Open Interest in the December month futures contract, followed by Reliance Industries witnessing a contraction of 2.39 million of Open Interest in the December month contract; while Infosys witnessed  an addition of 0.88 million of Open Interest, ICICI Bank witnessed contraction of 3.33 million of Open Interest in the December month contract and Axis Bank witnessed a contraction of 1.06 million of Open Interest in the December month's future contract.