Nifty ends below 7800 mark on weak global clues

The fifty share index -- Nifty-- ended lower on Monday on account of sustained selling by fund and retails investors. Further, weakness in other Asian markets also weighed on sentiments, after China's Caixin Manufacturing PMI for Dec was lower than expectations at 48.2 as operating conditions faced by Chinese goods producers continued to deteriorate in December. Besides, depreciation in Indian rupee against the dollar and surge in crude oil prices too dampened the market mood. After a gap down opening, Nifty continued to trade in red and finally ended with the loss of around 172 points, as Nikkei's Manufacturing Purchasing Managers' Index, compiled by Markit, fell to a 28-month low of 49.1 in December from November's 50.3. On the global front, Asian equity markets ended in red on Monday after Chinese factory data disappointed investors and China's central bank set the reference rate for Yuan at a more than 4-1/2-year low. European shares fell sharply on Monday, the first day of trading for 2016, as weak Chinese economic data weighed on world stock markets.

The top gainers from the F&O segment were IRB Infrastructure Developers, Jain Irrigation Systems and Ashok Leyland. On the other hand, the top losers were Reliance Communications, Tata Motors and Adani Enterprises. In the index options segment, maximum OI was being seen in the 7800-8300 calls and 7300-7900 puts. In today's session, while the traders preferred to exit 7900 put, heavy buildup was seen in the 7500 put. On the other hand, traders exited from 8300 Call, while 8200 call witnessed considerable OI addition.  



 
The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 18.06% and reached 16.83. The 50-share Nifty was up by 171.90 points or 2.16% to settle at 7,791.30.

Nifty January 2016 futures closed at 7809.80 on Monday at a premium of 18.50 points over spot closing of 7,791.30, while Nifty February 2016 futures ended at 7832.15 at a premium of 40.85 points over spot closing. Nifty January futures saw addition of 0.80 million (mn) units, taking the total outstanding open interest (OI) to 20.24 million (mn) units. The near month derivatives contract will expire on January 28, 2016.             

From the most active contracts, SBI January 2016 futures traded at a premium of 1.05 points at 221.45 compared with spot closing of 221.10. The number of contracts traded were 16,696.                

Axis Bank January 2016 futures traded at a premium of 3.85 points at 440.00 compared with spot closing of 436.15. The number of contracts traded were 12,687.            

Tata Steel January 2016 futures traded at a discount of 1.45 points at 257.55 compared with spot closing of 259.00. The number of contracts traded were 19,300.                    

Reliance Industries January 2016 futures traded at a premium of 7.35 points at 1000.55 compared with spot closing of 993.20. The number of contracts traded were 15,171.     

Tata Motors January 2016 futures traded at a premium of 2.10 points at 378.25 compared with spot closing of 376.15. The number of contracts traded were 14,004.      

Among Nifty calls, 8000 SP from the January month expiry was the most active call with an addition of 0.87 million open interests. Among Nifty puts, 7800 SP from the January month expiry was the most active put with an addition of 0.82 million open interests. The maximum OI outstanding for Calls was at 8200 SP (5.86 mn) and that for Puts was at 7500 SP (4.63 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7892.20--- Pivot Point 7836.65 --- Support --- 7735.75.    

The Nifty Put Call Ratio (PCR) finally stood at 1.04 for January month contract.  The top five scrips with highest PCR on OI were United Breweries (5.50), Mahindra & Mahindra Financial Services (2.47), HCL Technologies (2.15), Indian Overseas Bank (1.64) and Ajanta Pharma (1.56).  
 
Among most active underlying, Reliance Infrastructure witnessed an addition of 0.52 million of Open Interest in the January month futures contract, followed by Tata Motors witnessing a contraction of 0.95 million of Open Interest in the January month contract; Reliance Capital witnessed a contraction of 0.45 million of Open Interest in the January month contract, State Bank of India witnessed an addition of 3.77 million units of Open Interest in the January month's future contract and Reliance Industries witnessed an addition of 0.77 million of Open Interest in the January month contract.