Nifty ends flat ahead of long weekend

The fifty stocks index -- Nifty -- ended flat on Wednesday as investors remained cautious ahead of a long weekend and amid geopolitical concerns after militants targeted Brussels airport and a city metro station on Tuesday. Besides, weak trend in Asian stocks coupled with depreciation in rupee value also weighed on the sentiment. Extending its slide for the third straight day, Indian rupee shed another 16 paise to 66.87 against the dollar at the time of equity markets closing on appreciation of the American currency against others overseas. 

On the global front, Asian markets ended mostly in red, as falling oil prices and fresh geopolitical worries in light of Tuesday's terrorist attacks in Brussels kept risk appetite in check ahead of the long Easter break beginning on Friday. Oil prices were lower as investors eyed the release of US crude oil inventories later in the session amid ongoing concerns about oversupply. However, European stocks rose in early trade, with Credit Suisse among the gainers as investors welcomed the bank’s latest cost-cutting efforts. 

Back home, after getting a weak start, Indian benchmark Nifty extended its losses in late morning session and traded choppy for the most part of the day, as investors' sentiment was weighed down with the global rating agency Standard and Poor's report that the Indian banking sector might continue to face tough times over next 12 months as their asset quality and capitalization remain under pressure. However, some lower level buying in final hour of trade and supportive leads from European counterparts, help the index to end the session near its previous close. Sentiments got some support with the private report that the current account deficit narrowed in the October-December quarter of 2015 and is likely to shrink further in the March quarter of this year. 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 0.52% and reached 16.34. The 50-share Nifty was up by 1.60 points or 0.02% to settle at 7,716.50.   

Nifty March 2016 futures closed 7736.30 on Wednesday at a premium of 19.80 points over spot closing of 7,716.50, while Nifty April 2016 futures ended at 7780.55 at a premium of 64.05 points over spot closing. Nifty March futures saw addition of 0.63 million (mn) units, taking the total outstanding open interest (OI) to 21.73 million (mn) units. The near month derivatives contract will expire on March 31, 2016.                         

From the most active contracts, ICICI Bank March 2016 futures traded at a premium of 1.35 points at 234.85 compared with spot closing of 233.30. The number of contracts traded were 13,201.        

SBI March 2016 futures traded at a premium of 0.70 points at 196.95 compared with spot closing of 196.25. The number of contracts traded were 15,273.                      

Axis Bank March 2016 futures traded at a premium of 0.80 points at 438.65 compared with spot closing of 437.85. The number of contracts traded were 13,825.                  

Tata Steel March 2016 futures were trading flat compared with spot closing of 317.00. The number of contracts traded were 13,285.                                                

Reliance Industries March 2016 futures traded at a premium of 3.80 points at 1031.05 compared with spot closing of 1,027.25. The number of contracts traded were 20,277. 

Among Nifty calls, 7800 SP from the March month expiry was the most active call with an addition of 0.20 million open interests. Among Nifty puts, 7700 SP from the March month expiry was the most active put with an addition of 0.70 million open interests. The maximum OI outstanding for Calls was at 7800 SP (6.65 mn) and that for Puts was at 7600 SP (5.37 mn). The respective Support and Resistance levels of Nifty are: Resistance 7738.70 --- Pivot Point 7704.65 --- Support --- 7682.45.            

The Nifty Put Call Ratio (PCR) finally stood at 1.29 for March month contract. The top five scrips with highest PCR on OI were Indian Overseas Bank (2.62), United Breweries (2.50), Mcleod Russel India (2.19), Divis Laboratories (1.75) and Ultratech Cement (1.73).  

Among most active underlying, Reliance Industries witnessed a contraction of 1.60 million of Open Interest in the March month futures contract, followed by Tata Steel witnessing a contraction of 1.69 million of Open Interest in the March month contract; Reliance Infrastructure witnessed an addition of 0.007 million of Open Interest in the March month contract, State Bank of India witnessed a contraction of 1.34 million of Open Interest in the March month contract and Yes Bank witnessed a contraction of 0.38 million units of Open Interest in the March month's future contract.