S&P CNX Nifty ended lower on Wednesday, on the back of selling in front line counters in absence of any upside triggers. After getting a positive start, market see - sawed between positive and negative territory till noon deals, as investors preferred to stay on the sidelines a day ahead of the December derivatives contracts expiry. Also, traders remained cautious with World Bank chief economist Kaushik Basu’s statement that the Indian economy is expected to grow at 7 to 7.5 percent in 2016. Until October, the World Bank retained India's growth forecast at 7.5 percent for 2015-16 and expected it to be 7.8 percent in 2016-17 and 7.9 percent in 2017-18. Thereafter, Nifty entered into red weighed down by weak European markets. Finally, Nifty ended the session with a loss 32 point.
On the global front, Asian markets ended in red, as oil prices slumped back toward 11-year lows, sapping investors' appetite for risk assets and hurting the shares of mining and energy companies. European stocks slid, on the back of another selloff in commodities, keeping the region’s benchmark index on track for its worst December in more than a decade.
The top gainers from the F&O segment were Adani Power, Jindal Steel & Power and Dish TV India. On the other hand, the top losers were Kaveri Seed Company, Punjab National Bank and Aurobindo Pharma. In the index options segment, maximum OI was being seen in the 7900-8500 calls and 7200-7900 puts. In today's session, while the traders preferred to exit 7900 put, heavy buildup was seen in the 7850 put. On the other hand, traders exited from 7800 Call, while 7950 call witnessed considerable OI addition.
The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.80% and reached 14.35. The 50-share Nifty was down by 32.70 points or 0.41% to settle at 7,896.25.
Nifty December 2015 futures closed at 7901.90 on Wednesday at a premium of 5.65 points over spot closing of 7,896.25, while Nifty January 2016 futures ended at 7925.05 at a premium of 28.80 points over spot closing. Nifty December futures saw contraction of 2.54 million (mn) units, taking the total outstanding open interest (OI) to 10.15 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 0.35 points at 262.15 compared with spot closing of 262.50. The number of contracts traded were 15,312.
SBI December 2015 futures traded at a premium of 0.30 points at 226.25 compared with spot closing of 225.95. The number of contracts traded were 15,628.
Axis Bank December 2015 futures traded at a discount of 1.10 points at 454.40 compared with spot closing of 455.50. The number of contracts traded were 17,674.
Tata Steel December 2015 futures traded at a discount of 1.30 points at 257.50 compared with spot closing of 258.80. The number of contracts traded were 14,505.
Reliance Industries December 2015 futures traded at a premium of 2.15 points at 1005.60 compared with spot closing of 1,003.45. The number of contracts traded were 14,393.
Among Nifty calls, 8000 SP from the December month expiry was the most active call with an addition of 0.52 million open interests. Among Nifty puts, 7900 SP from the December month expiry was the most active put with a contraction of 0.50 million open interests. The maximum OI outstanding for Calls was at 8000 SP (8.64 mn) and that for Puts was at 7500 SP (4.65 mn). The respective Support and Resistance levels of Nifty are: Resistance 7930.72 --- Pivot Point 7910.28 --- Support --- 7875.82.
The Nifty Put Call Ratio (PCR) finally stood at 0.99 for December month contract. The top five scrips with highest PCR on OI were UBL (1.81), Lupin (1.53), ZEEL (1.51), IOB (1.31) and Bajaj Finance (1.24).
Among most active underlying, Dr. Reddy's Laboratories witnessed a contraction of 0.49 million of Open Interest in the December month futures contract, followed by Tata Steel witnessing a contraction of 5.26 million of Open Interest in the December month contract; Reliance Infrastructure witnessed a contraction of 1.58 million of Open Interest in the December month contract, Reliance Industries witnessed a contraction of 3.62 million of Open Interest in the December month contract and Axis Bank witnessed a contraction of 10.88 million units of Open Interest in the December month's future contract.
