Nifty end slightly in green on Monday

The fifty stock index -- Nifty -- ended the Monday’s trade slightly in green terrain, as traders took some encouragement with Fitch Ratings’ latest statement that it expects India's GDP growth trend higher than China's in the medium term despite demonetization. Some support also came with RBI’s Governor Urjit Patel has said that all necessary actions are being taken to 'ease the genuine pain of citizens' who are honest and who have been hurt. Liquidity in the banking system has increased and the intent is to normalise things as soon as possible. However, gains remained capped as traders reacted negatively to the Reserve Bank of India's (RBI) surprise move during the weekend, ordering banks to transfer 100% of their cash under the central bank's cash reserve ratio (CRR) from deposits generated between September 16 and November 11. Though, RBI has said that it will review its decision asking banks to deposit their extra cash with it once the government issues an adequate quantum of market stabilisation scheme bonds to soak up liquidity.

Buying in metal and mining stocks such as Jindal Steel, Vedanta, JSW Steel, and Hindustan Zinc rallied during the trade, as copper prices rose in global commodity markets, too aided sentiments. Telecom stocks too edged higher after the government’s decision to allow old Rs 500 notes to be used for pre-paid mobile recharges. Finally, Nifty ended the session with a gain of over ten points.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.51% and reached 18.05. The 50-share Nifty was up by 12.60 points or 0.16% to settle at 8,126.90.

Nifty December 2016 futures closed at 8150.60 on Monday at a premium of 23.70 points over spot closing of 8126.90, while Nifty January 2017 futures ended at 8176.90 at a premium of 50.00 points over spot closing. Nifty December futures saw an addition of 0.60 million (mn) units, taking the total outstanding open interest (OI) to 14.75 million (mn) units. The near month derivatives contract will expire on December 29, 2016.

From the most active contracts, State Bank of India December 2016 futures traded at a premium of 1.40 points at 254.95 compared with spot closing of 253.55. The numbers of contracts traded were 17,469.

ICICI Bank December 2016 futures traded at a premium of 1.40 points at 256.70 compared with spot closing of 255.30. The numbers of contracts traded were 12,088.

Yes Bank December 2016 futures traded at a premium of 3.85 points at 1153.45 compared with spot closing of 1149.60. The numbers of contracts traded were 11,916.

Vedanta December 2016 futures traded at a discount of 0.05 points at 228.65 compared with spot closing of 228.60. The numbers of contracts traded were 11,758.

Axis Bank December 2016 futures traded at a premium of 1.10 points at 474.00 compared with spot closing of 472.90. The numbers of contracts traded were 11,615. 

Among Nifty calls, 8300 SP from the December month expiry was the most active call with an addition of 0.57 million open interests. Among Nifty puts, 8000 SP from the December month expiry was the most active put with an addition of 0.40 million open interests. The maximum OI outstanding for Calls was at 8300 SP (3.76 mn) and that for Puts was at 8000 SP (7.07 mn). The respective Support and Resistance levels of Nifty are: Resistance 8160.10 --- Pivot Point 8113.30 --- Support --- 8080.10.             

The Nifty Put Call Ratio (PCR) finally stood at 1.11 for December month contract. The top five scrips with highest PCR on OI were Colgate (1.56), Ajanta Pharma (1.55), Aditya Birla Nuvo (1.40), Grasim (1.37) and Ultra Tech Cement (1.34).   

Among most active underlying, State Bank of India witnessed an addition of 1.59 million of Open Interest in the December month futures contract, followed by Vedanta witnessing an addition of 3.85 million of Open Interest in the December month contract, Yes Bank witnessed an addition of 0.21 million of Open Interest in the December month contract, Tata Steel witnessed an addition of 1.16 million of Open Interest in the December month contract and ICICI Bank witnessed an addition of 0.68 million units of Open Interest in the November month's future contract.