Nifty ends above 7,550 mark

The fifty stock index - Nifty - ended higher on Wednesday on account of buying in front line blue chip counters, taking positive cues from the European and Asian markets, after Chinese trade data cooled concerns over the world's second biggest economy, steadying money and currency markets in Shanghai and Hong Kong.  the benchmark Nifty made a gap up opening as investors largely influenced by supportive leads from Asian markets. However, the index failed to take advantage of the early momentum and slipped into negative territory as sentiments turned down-beat on report that the industrial output for the month of November contracted to 3.2%, its sharpest contraction in four years, as compared to an expressive 9.4% growth in the previous month. Also, the consumer inflation for the month of December rose to 5.61% as against 5.4% when compared month on month. However, in the last hours of the trade, market made a smart  recovery from its day’s low supported by good buying demand among index heavyweight shares like Infosys, RIL, indusind Bank and Tata Motors. Finally, Nifty ended the session with the gains of 52 points.

The top gainers from the F&O segment were the The Federal Bank, Infosys and Colgate Palmolive (India). On the other hand, the top losers were Amtek Auto, Reliance Infrastructure and IDBI Bank. In the index options segment, maximum OI was being seen in the 7500-8300 calls and 7000-7800 puts. In today's session, while the traders preferred to exit 7500 put, heavy buildup was seen in the 7200 put. On the other hand, traders exited from 8100 Call, while 7300 call witnessed considerable OI addition.  

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.92% and reached 18.35. The 50-share Nifty was up by 52.10 points or 0.69% to settle at 7,562.40   

Nifty January 2016 futures closed 7574.55 on Wednesday at a premium of 12.15 points over spot closing of 7,562.40, while Nifty February 2016 futures ended at 7597.10 at a premium of 34.70 points over spot closing. Nifty January futures saw addition of 0.41 million (mn) units, taking the total outstanding open interest (OI) to 22.20 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 0.05 points at 201.25 compared with spot closing of 201.20. The number of contracts traded were 26,436.          

ICICI Bank January 2016 futures traded at a premium of 1.55 points at 239.60 compared with spot closing of 238.45. The number of contracts traded were 19,519.                     

Axis Bank January 2016 futures traded at a premium of 2.85 points at 408.05 compared with spot closing of 405.20. The number of contracts traded were 24,042.                        

Tata Motors January 2016 futures traded at a premium of 2.20 points at 365.20 compared with spot closing of 363.00. The number of contracts traded were 17,624.          

Reliance Industries January 2016 futures traded at a premium of 6.05 points at 1079.25 compared with spot closing of 1,073.20. The number of contracts traded were 37,262.  

Among Nifty calls, 7600 SP from the January month expiry was the most active call with a contraction of 0.11 million open interests. Among Nifty puts, 7500 SP from the January month expiry was the most active put with a contraction of 0.32 million open interests. The maximum OI outstanding for Calls was at 8000 SP (6.87 mn) and that for Puts was at 7500 SP (5.70 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7626.97 --- Pivot Point 7526.38 --- Support --- 7461.82.      

The Nifty Put Call Ratio (PCR) finally stood at 0.86 for January month contract. The top five scrips with highest PCR on OI were United Breweries (3.18), Mahindra & Mahindra Financial Services (2.28), Tata Consultancy Services (1.16), HCL Technologies (1.13) and Glenmark Pharmaceuticals (0.96).     Among most active underlying, Reliance Industries witnessed a contraction of 0.99 million of Open Interest in the January month futures contract, followed by Tata Consultancy Services  witnessing a contraction of 0.01 million of Open Interest in the January month contract; Infosys witnessed an addition of 0.50 million of Open Interest in the January month contract, State Bank of India witnessed a contraction of 4.45 million of Open Interest in the January month contract and Tata Motors witnessed a contraction of 1.65 million units of Open Interest in the January month's future contract.