Nifty ends higher on global rally

The fifty stock index - Nifty - ended higher on Friday, tracking a rally in global stocks amid a rebound in global crude oil prices and expectations of further stimulus measures from the European Central Bank.  Value buying in metal, banks, auto, oil & gas and healthcare sectors also supported market sentiments.  After gap up opening, Indian benchmark Nifty added gains and continued to trade firm throughout the day, as investors was getting support with Finance Minister Arun Jaitley’s statement that the India is gradually transforming most of its taxation laws for a greater degree of stability and predictability, stressing that the proposed Goods and Services Tax (GST) is a major step in this direction. Besides, appreciation in Indian rupee too supported the markets.  Meanwhile, the Reserve Bank of India (RBI) has said that the government will pay banks a 2.5 per cent commission to unlock the country's massive stash of gold under a new monetisation scheme.   

On the global front, Asian markets ended in green, while European markets were trading higher as comments by European Central Bank President Mario Draghi announcing the possibility of further stimulus measures boosted equities.

The top gainers from the F&O segment were SKS Microfinance, GAIL (India) and Power Finance Corporation. On the other hand, the top losers were Idea Cellular, Jet Airways (India) and Mahindra & Mahindra Financial Services. In the index options segment, maximum OI was being seen in the 7400-8200 calls and 6900-7500 puts. In today's session, while the traders preferred to exit 7600 put, heavy buildup was seen in the 7300 put. On the other hand, traders exited from 7300 Call, while 7550 call witnessed considerable OI addition.     
 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 9.57% and reached 18.82. The 50-share Nifty was up by 145.65 points or 2.00% to settle at 7,422.45.   

Nifty January 2016 futures closed 7430.70 on Friday at a premium of 8.25 points over spot closing of 7,422.45, while Nifty February 2016 futures ended at 7443.10 at a premium of 20.65 points over spot closing. Nifty January futures saw contraction of 1.06 million (mn) units, taking the total outstanding open interest (OI) to 18.48 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 0.10 points at 184.75 compared with spot closing of 184.65. The number of contracts traded were 34,679.            

ICICI Bank January 2016 futures traded at a premium of 0.30 points at 233.10 compared with spot closing of 232.80. The number of contracts traded were 17,554.                      

Axis Bank January 2016 futures traded at a discount of 1.05 points at 423.95 compared with spot closing of 425.00. The number of contracts traded were 32,014.                         

Reliance Industries January 2016 futures traded at a premium of 3.40 points at 1007.45 compared with spot closing of 1,004.05. The number of contracts traded were 28,759.            

Yes Bank January 2016 futures traded at a discount of 1.40 points at 684.60 compared with spot closing of 686.00. The number of contracts traded were 14,446.       

Among Nifty calls, 7400 SP from the January month expiry was the most active call with a contraction of 0.38 million open interests. Among Nifty puts, 7300 SP from the January month expiry was the most active put with an addition of 1.06 million open interests. The maximum OI outstanding for Calls was at 7800 SP (4.76 mn) and that for Puts was at 7300 SP (7.24 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7461.37 --- Pivot Point 7394.48 --- Support --- 7355.57.         

The Nifty Put Call Ratio (PCR) finally stood at 0.92 for January month contract. The top five scrips with highest PCR on OI were United Breweries (2.15), Ultratech Cement (1.50), Hero MotoCorp (1.32) Mahindra & Mahindra Financial Services (1.15) and Tata Consultancy Services (1.09).     

Among most active underlying, Reliance Industries witnessed a contraction of 4.44 million of Open Interest in the January month futures contract, followed by Jet Airways (India) witnessing a contraction of 0.06 million of Open Interest in the January month contract; State Bank of India witnessed a contraction of 18.19 million of Open Interest in the January month contract, Axis Bank  witnessed a contraction of 6.26 million of Open Interest in the January month contract and Maruti Suzuki India witnessed a contraction of 0.19 million units of Open Interest in the January month's future contract.