Nifty ends lower amid weak global cues

The fifty stock index -- Nifty -- ended lower on Tuesday on account of selling in front line blue chip counters amid weak global clues. Investors remained cautious ahead of Index of Industrial Production (IIP) data for November and CPI Inflation data scheduled to be released later in the day. Meanwhile, the global markets continued to remain unnerved amid China growth concerns along with a sharp decline in the crude oil prices and quoting near 12 year low on oversupply glut. Sentiments remained dampened on report that foreign investors sold shares worth Rs. 1,319.24 crore yesterday as per provisional data. On the global front, Asian equity markets ended mostly in red on Tuesday in cautious trading, as oil took another tumble.  European shares climbed higher after a key equity index had hit its lowest level in more than three months, with a rally in retailers following some positive company updates underpinning the market. Back home, after getting a positive opening, Nifty slipped in the negative territory and continued to trade in red throughout session. Finally, market ended with the cut of 53 points. 

The top gainers from the F&O segment were the Wockhardt, Jet Airways (India) and NTPC. On the other hand, the top losers were The Federal Bank, Unitech and Reliance Communications. In the index options segment, maximum OI was being seen in the 7500-8300 calls and 7000-77500 puts. In today's session, while the traders preferred to exit 7700 put, heavy buildup was seen in the 7300 put. On the other hand, traders exited from 8300 Call, while 7700 call witnessed considerable OI addition. 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.12% and reached 18.71. The 50-share Nifty was down by 53.55 points or 0.71% to settle at 7,510.30.   

Nifty January 2016 futures closed at 7534.05 on Tuesday at a premium of 23.75 points over spot closing of 7,510.30, while Nifty February 2016 futures ended at 7557.35 at a premium of 47.05 points over spot closing. Nifty January futures saw contraction of 0.17 million (mn) units, taking the total outstanding open interest (OI) to 21.79 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 0.65 points at 200.25 compared with spot closing of 199.60. The number of contracts traded were 18,447.         

ICICI Bank January 2016 futures traded at a discount of 0.55 points at 237.55 compared with spot closing of 238.10. The number of contracts traded were 11,961.                   

Axis Bank January 2016 futures traded at a premium of 1.10 points at 407.85 compared with spot closing of 406.75. The number of contracts traded were 19,758.                        

Reliance Industries January 2016 futures traded at a premium of 4.45 points at 1048.85 compared with spot closing of 1,044.40. The number of contracts traded were 19,483.         

Larsen & Toubro January 2016 futures traded at a premium of 4.70 points at 1184.70 compared with spot closing of 1,180.00. The number of contracts traded were 18,659.

Among Nifty calls, 7700 SP from the January month expiry was the most active call with an addition of 0.82 million open interests. Among Nifty puts, 7500 SP from the January month expiry was the most active put with an addition of 0.02 million open interests. The maximum OI outstanding for Calls was at 8000 SP (7.08 mn) and that for Puts was at 7500 SP (6.02 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7569.80 --- Pivot Point 7528.80 --- Support --- 7469.30.     

The Nifty Put Call Ratio (PCR) finally stood at 0.84 for January month contract. The top five scrips with highest PCR on OI were United Breweries (4.86), Mahindra & Mahindra Financial Services (2.36), Indian Overseas Bank (1.35), Tata Consultancy Services (1.25) and HCL Technologies (1.13).   

Among most active underlying, Tata Consultancy Services witnessed an addition of 0.07 million of Open Interest in the January month futures contract, followed by Reliance Industries witnessing an addition of 0.10 million of Open Interest in the January month contract; IndusInd Bank witnessed an addition of 0.06 million of Open Interest in the January month contract, Reliance Infrastructure witnessed an  addition of 0.16 million of Open Interest in the January month contract and State Bank of India witnessed an addition of 2.30 million units of Open Interest in the January month's future contract.