S&P CNX Nifty ended on a flat note with marginal gains in a volatile trading session on Tuesday, while participation remained weak due to year-end holidays and the derivatives contracts expiry later this week. After getting a positive start, market continued to trade in green in till early noon deals, as investors got some encouragement with Finance Minister Arun Jaitley's statement that rolling out the ambitious GST regime is 'certainly' doable in 2016 and he is in continuous touch with the Congress party in a bid to persuade them to cooperate. However, Nifty entered into red in noon deals, as investors turned cautious ahead of F&O expiry for the month of December. Sentiments once again turned positive and market got momentum in last leg of trade and ended the session with a gain of 3.80 points, as the government expects FDI inflows to rise by 40-45 per cent in the New Year while further steps could be on anvil to attract foreign capital.
On the global front, Asian markets ended mostly in green, despite another fall in oil prices overnight after Iran said it planned to increase exports once international sanctions are removed. European shares climbed higher, lifted by firmer financial stocks.
The top gainers from the F&O segment were Reliance Capital, Engineers India and LIC Housing Finance. On the other hand, the top losers were Kaveri Seed Company, Allahabad Bank and Oil India. In the index options segment, maximum OI was being seen in the 7900-8500 calls and 7200-8000 puts. In today's session, while the traders preferred to exit 7800 put, heavy buildup was seen in the 7950 put. On the other hand, traders exited from 7900 Call, while 8000 call witnessed considerable OI addition.
The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.16% and reached 14.23. The 50-share Nifty was up by 3.80 points or 0.05% to settle at 7,928.95.
Nifty December 2015 futures closed at 7932.05 on Tuesday at a premium of 3.10 points over spot closing of 7,928.95, while Nifty January 2016 futures ended at 7955.85 at a premium of 26.90 points over spot closing. Nifty December futures saw contraction of 2.40 million (mn) units, taking the total outstanding open interest (OI) to 12.69 million (mn) units. The near month derivatives contract will expire on December 31, 2015.
From the most active contracts, ICICI Bank December 2015 futures traded at a discount of 1.30 points at 264.45 compared with spot closing of 265.75. The number of contracts traded were 12,826.
SBI December 2015 futures traded at a premium of 0.25 points at 228.65 compared with spot closing of 228.40. The number of contracts traded were 14,664.
Axis Bank December 2015 futures traded at a discount of 0.75 points at 458.25 compared with spot closing of 459.00. The number of contracts traded were 458.25.
HDFC Bank December 2015 futures traded at a discount of 0.30 points at 1079.40 compared with spot closing of 1,079.70. The number of contracts traded were 23,340.
Reliance Industries December 2015 futures traded at a premium of 2.75 points at 1016.75 compared with spot closing of 1,014.00. The number of contracts traded were 17,603.
Among Nifty calls, 8000 SP from the December month expiry was the most active call with an addition of 0.41 million open interests. Among Nifty puts, 7900 SP from the December month expiry was the most active put with an addition of 0.50 million open interests. The maximum OI outstanding for Calls was at 8000 SP (8.12 mn) and that for Puts was at 7500 SP (5.01 mn). The respective Support and Resistance levels of Nifty are: Resistance 7946.48 --- Pivot Point 7924.62 --- Support --- 7907.08.
The Nifty Put Call Ratio (PCR) finally stood at 1.04 for December month contract. The top five scrips with highest PCR on OI were UBL (1.74), ZEEL (1.36), Lupin (1.39), IOB (1.28) and Bajaj Finance (1.21).
Among most active underlying, Reliance Infrastructure witnessed a contraction of 1.38 million of Open Interest in the December month futures contract, followed by HDFC Bank witnessing a contraction of 5.09 million of Open Interest in the December month contract; Reliance Industries witnessed a contraction of 4.53 million of Open Interest in the December month contract, Reliance Communications witnessed a contraction of 22.88 million of Open Interest in the December month contract and Axis Bank witnessed a contraction of 5.58 million units of Open Interest in the December month's future contract.
