Nifty ends with marginal loss on Tuesday

The fifty stock index - Nifty - ended lower in a choppy trade on Tuesday as overall market sentiment remained cautious due to continued worries about China’s markets.  Meanwhile, investors eagerly await the fourth quarter earnings results starting next week with Infosys slated to announce its results on January 14, 2016. After making a good start, Nifty was alternating between positive and negative territory and finally ended with loss of around 7 points. On the global front, Asian markets retreated in choppy trade to end mostly lower on Tuesday, led by Chinese stocks, whose early rebound fizzled out as investors remained unconvinced by Beijing’s moves to restore market confidence following a disastrous start to the New Year. European shares were trading mostly in red in early deals on Tuesday. 

Back home, the top gainers from the F&O segment were IFCI, Aditya Birla Nuvo and Tata Steel. On the other hand, the top losers were Container Corporation of India, Cadila Healthcare and Bharti Infratel. 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 7700 put. On the other hand, traders exited from 8600 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 0.79% and reached 16.70. The 50-share Nifty was down by 6.65 points or 0.09% to settle at 7,784.65.  

Nifty January 2016 futures closed at 7802.75 on Tuesday at a premium of 18.10 points over spot closing of 7,784.65, while Nifty February 2016 futures ended at 7823.35 at a premium of 38.70 points over spot closing. Nifty January futures saw addition of 0.47 million (mn) units, taking the total outstanding open interest (OI) to 20.71 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 0.90 points at 218.65 compared with spot closing of 217.75. The number of contracts traded were 18,015.                 

ICICI Bank January 2016 futures traded at a discount of 0.90 points at 256.15 compared with spot closing of 257.05. The number of contracts traded were 10,174.      

Axis Bank January 2016 futures traded at a premium of 1.90 points at 437.50 compared with spot closing of 435.60. The number of contracts traded were 9,315.                     

Tata Steel January 2016 futures traded at a premium of 2.30 points at 275.00 compared with spot closing of 272.70. The number of contracts traded were 28,804.     

Reliance Industries January 2016 futures traded at a premium of 4.30 points at 1009.30 compared with spot closing of 1,005.00. The number of contracts traded were 10,897.     

Among Nifty calls, 8000 SP from the January month expiry was the most active call with an addition of 1.35 million open interests. Among Nifty puts, 7700 SP from the January month expiry was the most active put with an addition  of 0.79 million open interests. The maximum OI outstanding for Calls was at 8200 SP (6.27 mn) and that for Puts was at 7500 SP (5.38 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7822.82 --- Pivot Point 7793.03 --- Support --- 7754.87. 

The Nifty Put Call Ratio (PCR) finally stood at 0.97 for January month contract. The top five scrips with highest PCR on OI were United Breweries (5.50), Mahindra & Mahindra Financial Services (2.38), HCL Technologies (1.92), Indian Overseas Bank (1.50) and Ajanta Pharma (1.33). 

Among most active underlying, Reliance Infrastructure witnessed an addition of 0.65 million of Open Interest in the January month futures contract, followed by Tata Steel witnessing an addition of 0.86 million of Open Interest in the January month contract; Reliance Capital Bank witnessed an addition of 0.65 million of Open Interest in the January month contract, State Bank of India witnessed an addition of 3.24 million of Open Interest in the January month contract and Reliance Industries witnessed a addition of 0.05 million units of Open Interest in the January month's future contract.