Nifty snaps seven days gaining streak

CNX Nifty went through a dismal day of trade on Friday and the index after a very volatile session closed down by over half a percent. Traders remained in the mood of profit booking, while some selling in the bluchips too dragged the markets lower for the day. There was not much supportive cues and traders looked taking cautious bet ahead of the budget week. Most of the sectoral indices on the NSE settled in the negative territory with CNX IT and Energy losing over a percent each, MNC, Commodities and Services too lost over half a percent each, however reality, PSU Banks and Pharma gained some traction for the day.

The top gainers from the F&O segment were BHEL, BoB and ITC. On the other hand, the top losers were Reliance Industries, ICICI Bank and HCL Tech.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 4.26% and reached 21.26. The 50-share CNX Nifty was down by 61.70 points or 0.69% to settle at 8,833.60.

Nifty February 2015 futures closed at 8849.45 on Friday at a premium of 15.85 points over spot closing of 8833.60, while Nifty March 2015 futures ended at 8909.55 at a premium of 75.95 points over spot closing. Nifty February futures saw contraction of 1.93 million (mn) units, taking the total outstanding open interest (OI) to 22.93 million (mn) units. The near month derivatives contract will expire on February 26, 2015.

From the most active contracts, State Bank of India February 2015 futures traded at a premium of 0.70 points at 302.90 compared with spot closing of 302.20. The number of contracts traded were 40,986.

ICICI Bank February 2015 futures traded at a premium of 1.70 points at 332.15 compared with spot closing of 330.45. The number of contracts traded were 27,619.HDFC Bank February 2015 futures traded at a premium of 4.00 points at 1074.80 compared with spot closing of 1070.80. The number of contracts traded were 33,812.

Reliance Industries February 2015 futures traded at a premium of 3.80 points at 876.60 compared with spot closing of 872.80. The number of contracts traded were 42,221.BHEL February 2015 futures traded at a premium of 0.15 points at 276.15 compared with spot closing of 276.00. The number of contracts traded were 19,739.

Among Nifty calls, 9000 SP from the February month expiry was the most active call with an addition of 1.2 million open interests. Among Nifty puts, 8900 SP from the February month expiry was the most active put with an addition of 0.28 million open interests. The maximum OI outstanding for Calls was at 9000 SP (7.3 mn) and that for Puts was at 8,800 SP (4.30 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8883.60--- Pivot Point 8849.95 --- Support --- 8799.95.

The Nifty Put Call Ratio (PCR) finally stood at 0.96 for February month contract. The top five scrips with highest PCR on OI were Syndicate Bank (1.27), HCL Tech (1.17), Sun TV (1.06), ACC (1.05) and HDIL (1.05).