Nifty ends lower on November F&O expiry day

The domestic index Nifty finished the November F&O series with a massive cut of around 650 points or 8 percent on account of continues foreign fund outflows and weakness in emerging market since Donald Trump’s unexpected win in the US presidential election on November 8, 2016. Today, Nifty traded in the tight band near its crucial 8000 level for most part of the day but, got hammered in the final hour of trade, as investors wound up their long positions after the rupee collapsed to a life-time low against the dollar amid continued foreign fund outflows. Continued disruption in Rajya Sabha by opposition parties over currency demonetisation also dented the market sentiment. Adding anxiety among investors, Commerce and Industry Minister Nirmala Sitharaman said that economic output in the current quarter may get affected, with the government’s demonetization drive temporarily hitting commercial activities in some sectors. The market remained highly volatile as traders were rolling positions to the next series as November series F&O contracts expired. 

The top gainers from the F&O segment were Hindustan Zinc, Tata Elxsi and NMDC. On the other hand, the top losers were Reliance Infrastructure, Indo Count Industries and Jaiprakash Associates. In the index option segment, maximum OI continues to be seen in the 8500-8200 calls and 7800-8000 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 4.88% and reached 17.16. The 50-share Nifty was down by 67.80 points or 0.84% to settle at 7,965.50.

Nifty December 2016 futures closed at 8013.10 on Thursday at a premium of 47.6 points over spot closing of 7,965.50, while Nifty January 2017 futures ended at 8044.95 at a premium of 79.45 points over spot closing. Nifty December futures saw an addition of 5.83 million (mn) units, taking the total outstanding open interest (OI) to 15.01 million (mn) units. The near month derivatives contract will expire on December 29, 2016.

From the most active contracts, ICICI Bank December 2016 futures traded at a premium of 0.55 points at 260.95 compared with spot closing of 260.40. The numbers of contracts traded were 18,964.

HDFC Bank December 2016 futures traded at a premium of 10.4 points at 1175.75 compared with spot closing of 1,165.35. The numbers of contracts traded were 26,662.

Sun Pharmaceuticals Industries December 2016 futures traded at a premium of 4.20 points at 686.20 compared with spot closing of 682.00. The numbers of contracts traded were 21,098.

Reliance Industries December 2016 futures traded at a premium of 0.45 points at 992.85 compared with spot closing of 992.40. The numbers of contracts traded were 20,058.

Infosys December 2016 futures traded at a premium of 5.85 points at 935.85 compared with spot closing of 930.00. The numbers of contracts traded were 18,671.  

Among Nifty calls, 8000 SP from the November month expiry was the most active call with an addition of 0.60 million open interests. Among Nifty puts, 8000 SP from the November month expiry was the most active put with a contraction of 4.13 million open interests. The maximum OI outstanding for Calls was at 8500 SP (3.48 mn) and that for Puts was at 8000 SP (5.59 mn). The respective Support and Resistance levels of Nifty are: Resistance 8009.38--- Pivot Point 7980.97--- Support --- 7937.08.             

The Nifty Put Call Ratio (PCR) finally stood at 1.05 for November month contract. The top five scrips with highest PCR on OI were Grasim (5.82), Marico (3.67), Aditya Birla Nuvo (3.62), CESC (2.50) and NIIT Technologies (2.50).   

Among most active underlying, Vedanta witnessed an addition of 8.14 million of Open Interest in the November month futures contract, followed State Bank of India witnessing an addition of 15.77 million of Open Interest in the November month contract, ICICI Bank witnessed an addition of 27.08 million of Open Interest in the November month contract, HDFC Bank witnessed an addition of 8.72 million of Open Interest in the November month contract and Reliance Industries witnessed an addition of 6.65 million units of Open Interest in the November month's future contract.